The Offering
Offering Price: Best Offer
Portfolio Size: 141,992 RSF
Percentage Leased: 92.5%
In-Place NOI: $2,243,553
CBRE’s U.S. Healthcare Capital Markets Group is pleased to offer the exclusive opportunity to acquire the Centegra Medical Office Portfolio (the “Portfolio”) with assets located in McHenry, Woodstock and Antioch, Illinois. The Portfolio consists of six (6) medical office buildings and represents a rare opportunity to purchase approximately 141,992 square feet of medical office product located on or near Centegra Health System (“Centegra”) hospital campuses.
The Portfolio is currently 92.5% leased with an ideal mix of stabilized and value-add assets, providing an investor with an excellent opportunity to create value by leasing the vacant space and benefiting from the additional cash flow. Centegra anchors the asset tenancy and currently occupies approximately 88.6% of the total portfolio occupied square footage.
Centegra Health System serves McHenry County with three acute-care hospitals and an extensive outpatient network, and a fourth hospital is under construction in Huntley, Illinois that will open in the summer of 2016. The health system is the largest employer in McHenry County with over 4,000 employees including over 550 physicians. Centegra maintains an investment grade ‘BBB’ rating from Fitch and S&P Ratings. Fitch recently affirmed Centegra’s rating due to its strong 42.3% inpatient market share in McHenry County through second quarter 2015, its financial strength with 156 days cash on hand and the projected new revenue that will be generated from the opening of the new Huntley hospital campus.
The offering provides the rare opportunity to acquire the medical office assets of a leading investment grade credit health system in the northern suburbs of Chicago.
Investment Highlights
- Investment Grade Health System Tenancy
- Long-Term Lease Commitment
- Attractive On-Campus Locations
- Positive Physician Employment Trends
- Diverse Tenancy
- Appealing Senior Demographic Trends
- “Recession Resistant” Property Category
- Delivered Free and Clear of Debt
CBRE U.S. Healthcare Capital Markets Group
Chris Bodnar
+1 303 628 1711
chris.bodnar@cbre.com
Lee Asher
+1 404 504 5965
lee.asher@cbre.com
CBRE Illinois Investment Properties
Bill Novelli, Jr
+1 630.573.7084
william.novelli@cbre.com
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE
