99% leased portfolio anchored by Advocate Aurora Health
April 27, 2020 — Chicago, IL – Avison Young announced today that it represented HSA Primecare in its sale of a 107,828-square-foot (sf), four-building medical office portfolio in the Chicago and Milwaukee markets. The Core Plus, hospital anchored portfolio is 99% leased, primarily to Advocate Aurora Health. The buildings are located in the suburban Chicago and Milwaukee markets and are located in proximity to several Advocate healthcare facilities.
Avison Young Principals Mike Wilson and Erik Foster, leaders of Avison Young’s national healthcare capital markets group and based in the company’s Chicago office, along with Jim Kornick in the Washington, DC office, represented the seller. The buyer was IRA Capital, a private equity real estate firm based in Irvine, CA. Financial terms were not disclosed.
“Investors will continue to look for well-located medical office assets in strong population centers,” comments Wilson. “The presence of a dominant hospital anchor will continue to be a huge driver in medical office sales, especially considering today’s uncertain times with COVID-19 shutdowns. HSA put together a quality portfolio of long term critical build-to-suit facilities that align very well with market demand.”
Advocate Aurora Health, which occupies 65% of the portfolio, is a nationally recognized medical provider with the largest fully integrated healthcare delivery system in Illinois. Headquartered in Downers Grove, IL and Milwaukee, WI, the health care provider cares for 2.7 million patients annually out of its 28 hospitals and 500 outpatient locations.
The portfolio includes:
- a 33,519-sf building at 1357 W. 103rd Street in Chicago, IL. The building is 97% leased, primarily to Advocate Medical Group. The center is halfway between Advocate Christ Hospital and Advocate Trinity Hospital and serves as an off-campus primary care and imaging services hub for its patient base.
- a 35,011-sf, two-story building at 6840 Main Street, Downers Grove, IL. It is 99% occupied by multiple tenants including Advocate Health and Hospital Corporation
- A 15,231-sf surgery center at 240 Center Drive in Vernon Hills, IL, which is 100% occupied by Hawthorn ASC.
- A 24,067-sf building at S68 W1550 Janesville Road in Muskego, WI, in the Milwaukee submarket. It is 100% occupied by Aurora Health Care.
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 120 offices in 20 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.
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