FOR IMMEDIATE RELEASE:
Lease reduces hospital system’s net rate, includes generous tenant improvement allowance
Perry Higa of NAI Hiffman successfully brokered an 87,461-square-foot early lease renewal of medical office space at Pavilion A on the Silver Cross Hospital campus in New Lenox, Ill.
OAKBROOK TERRACE, Ill. (July 15, 2025) — NAI Hiffman, the Midwest’s leading independent commercial real estate firm, today announced it brokered an early, long-term lease renewal for Silver Cross Hospital at 1890 Silver Cross Blvd., a 174,855-square-foot, six-level medical office building known as Pavilion A in New Lenox, Ill. Silver Cross healthcare providers occupy 87,461 square feet, which includes the first two levels as well as eight suites on the upper four levels. Other tenants in the building include the Shirley Ryan AbilityLab at Silver Cross and independent healthcare providers.
“As a mission-based organization, Silver Cross is always focused on what matters most: delivering exceptional care to our patients and our community,” said Silver Cross Executive Vice President and Chief Financial Officer Vince Pryor. “This early lease renewal and the remarkable savings resulting from it will allow us to redeploy valuable resources directly into world-class healthcare programs, services and technologies that will benefit our patients and communities today and far into the future.”
Perry Higa, executive vice president, corporate services at NAI Hiffman, represented Silver Cross in the lease renewal, and Steve Brooks and Katie McReynolds of NexCore Group represented the owner, Prudential Real Estate Investors.
Higa and Pryor strategized and initiated lease negotiations to reduce costs and restructure the hospital’s lease term and obligations. Completed nearly two years ahead of its original lease expiration in fourth-quarter 2026, the renewal accomplished several business objectives for Silver Cross, including:
• a significant reduction of the net rental rate for immediate savings,
• a newly negotiated ground lease, which is a long-term revenue stream for Silver Cross,
• landlord reimbursement for Silver Cross’ past renovations of first- and lower-level spaces for lab, MRI, X-ray and other medical equipment,
• a large tenant improvement allowance and favorable terms for future renovations of existing medical offices.
“With the challenges facing healthcare providers — from high construction costs, to inflation, to labor shortages — it’s more important than ever to provide creative real estate solutions for health systems and independent physician groups,” said Higa.
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the U.S., with a primary focus on metropolitan Chicago, and part of the NAI Global network. The firm provides institutional and private leasing, property management, tenant representation, capital markets, project services, research and marketing services for owners and occupiers of commercial real estate. To meet its clients’ growing needs outside of NAI Hiffman’s exclusive territory, the firm launched Hiffman National, a dedicated property solutions division, which provides property management, project services and property accounting services across the country. NAI Hiffman | Hiffman National is an award-winning company headquartered in suburban Chicago, with more than 275 employees strategically located throughout North America.
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Perry Higa of NAI Hiffman successfully brokered an 87,461-square-foot early lease renewal of medical office space at Pavilion A on the Silver Cross Hospital campus in New Lenox, Ill.
CONTACTS: Paula Widholm, pwidholm@taylorjohnson.com, (312) 267-4525
Abe Tekippe, atekippe@taylorjohnson.com, (312) 267-4528
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