Seller: Development Resources, Inc., Oaktree Capital Management, LLC
Buyer: MB Real Estate
Market Reception: Well received with 15 serious offers. Lack of 100% medical use was a small issue, but NorthShore investment credit and long lease term provided major upside.
Competitive Bid Profile: Public and Private REITs, private equity
Property Overview
- Location: Skokie, IL
- Asset Type: MOB
- Mixed-Use: No
- Size: 112,633 SF
- Occupancy: 100%
- Year Built: 1957/1997
- Date Closed: 4/30/2015
Financial Overview
- Purchase Price: $29,500,000
- Price PSF: $262 PSF
- Est. Cap Rate on Existing NOI: 6.53%
- Est. IRR (Unlevered): 8.0%
- Hold Period: 10 Years
- Unlevered Cash on Cash Return: 7.0%
- Est. Exit Cap Rate: 7.75%
Notes:
- NorthShore lease term through 10/2030 (70% of the building)
- Net lease structure with escalations
- Excellent micro-ofifce market
- Proximity to NorthShore’s Skokie hospital
- Demographics – proximity to several of Chicago’s wealthiest enclaves
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