“Building Within a Building” will Deliver Unparalleled Patient Experience; HEARN Selects Cushman & Wakefield to Market Mag Mile Medical Pavilion
to Healthcare Tenants
CHICAGO, February 23, 2022 – The Hearn Company will convert four office floors at 875 North Michigan Avenue to accommodate clinical and surgical uses creating the Mag Mile Medical Pavilion, a Class A medical office opportunity. HEARN has selected Cushman & Wakefield to lease the “building-within-a-building” in the iconic, mixed-use tower overlooking Lake Michigan and the city’s Magnificent Mile.
HEARN plans to invest more than $10 million into converting, initially, floors 28-30 and 33, totaling 130,000 square feet, into a medical office building (MOB) within the 100-story landmark. The Mag Mile Medical Pavilion will have a dedicated valet entrance with patient drop-off and pick-up on the north side of the structure, along with a dedicated elevator bank. Secured heated parking with private elevator access to the medical floors will be available as well. For the new project, HEARN has selected Cushman & Wakefield’s Healthcare Advisory Practice to market the property to prospective tenants, with the leasing team consisting of Karoline Eigel, Matt Sullivan, Lindsey Groom and Jack Seher.
Upon completion, which is slated for Q2 2022, the Mag Mile Medical Pavilion will offer the only Class A healthcare opportunity in a submarket where medical office vacancy is approximately 5%. Additionally, it is immediately adjacent to the Northwestern and Streeterville Healthcare Campuses, a 13.1 million-square-foot medical cluster that is 98.3% occupied and home to Lurie Children’s Hospital, Prentice Women’s Hospital, Northwestern Memorial Hospital, Feinberg School of Medicine, Shirley Ryan AbilityLab and numerous specialty practice groups.
Within a five-mile radius, the population of nearly 750,000 has an average annual income of $133,369, an overall annual healthcare spend of nearly $2.9 billion and a 70% commercial payer mix for healthcare insurance reimbursements.
“We will provide a truly unparalleled patient experience in a market with high tenant demand and demographics that are among the best in the world,” said Stephen G. Hearn, President and CEO of HEARN. “Though 875 North Michigan Avenue is an iconic structure, we’re always looking for ways to innovate and add value, both to the property and our surrounding community. With the Mag Mile Medical Pavilion, we can successfully do both and address the needs of a rapidly growing healthcare sector.”
Cushman & Wakefield will market the Mag Mile Medical Pavilion to health systems and specialty practice groups, offering significant branding and signage opportunities. In addition to its dedicated entrances and elevator banks, it will offer approximately 33,000-square-foot floorplates with 12’6” slab-to-slab ceiling heights to easily accommodate additional piping, duct work and medical equipment; back-up tenant generators to ensure life-safety redundancy; and additional exhaust and supply air that can be easily accessed on each tenant floor.
“The Mag Mile Medical Pavilion is set to meet the demand in a healthcare-focused submarket lacking available, modern and efficient medical space,” Eigel said. “Given its surroundings – the Magnificent Mile and Northwestern’s medical campus – it’s befitting that this new space sets the highest standard in terms of both facilities and patient experience, creating a transformational healthcare destination.”
Access this link for a rendering of Mag Mile Medical Pavilion’s lobby, while this link provides a rendering of Mag Mile Medical Pavilion’s exterior.
About The Hearn Company
HEARN has owned and operated institutional quality commercial real estate throughout the United States for over 40 years. HEARN manages its own investments and partners with others, always with one clear objective: adding value. Whether repositioning an underperforming investment or enhancing a core asset, HEARN has built a national reputation as a passionate, hardworking owner and manager dedicated to improving efficiency and maximizing profitability.
HEARN features an executive team that has worked together for over 30 years, advancing these principles while creating a strong and consistent platform that drives its culture and defines its success.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries. In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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For Further Information Contact:
Bailey Webb
Cushman & Wakefield
+1 404 682 3381
bailey.webb@cushwake.com
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