 |
| 2923 North California Avenue, Chicago, IL |
CHICAGO, IL, May 20,
2015 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate
investment services firm with offices throughout the United States and Canada,
announced the sale of a nine-building, 401,428-square-foot medical office
portfolio. The portfolio sold for $131 million.
 |
| John Smelter |
The
portfolio is anchored by the Illinois Bone and Joint Institute (IBJI). All of
the properties are located within the Chicago metropolitan area.
John Smelter,
senior director of Marcus & Millichap’s Healthcare Real Estate Group, along
with Scott Niedergang, associate
vice president investments, and Gino
Lollio, associate vice president investments, represented the seller, a
partnership consisting of a local developer and a number of physicians
affiliated with IBJI.
Smelter, Niedergang and Lollio procured the buyer, a joint
ventured fund managed by MBRE Healthcare, a Chicago-based full-service real
estate company that develops, acquires, leases and manages healthcare real
estate across the United States.
“The portfolio is 54-percent leased by
the non-credit rated IBJI - occupying eight of the nine properties - and they
are one of the largest orthopedic groups in the country,” says Smelter.
“IBJI
has a strong foothold in the Chicagoland market with 20 total locations. IBJI’s
financial strength and long term leases allowed us to generate significant
interest from private equity, institutions and REITs looking to acquire an
extremely stable, institutional-quality investment.”
 |
| Scott Niedergang |
“The sellers did an
outstanding job accumulating this portfolio over the years by acquiring,
repositioning and developing these buildings for IBJI and the other tenants,”
adds Niedergang.
“The portfolio is currently 95 percent occupied on triple-net
leases, majority of which call for annual rental escalations ranging from two
to three percent. Almost half of the
rent roll has 10-plus years remaining.
Additionally, many of the properties are
strategically positioned in Chicago’s affluent North Shore markets like
Wilmette, Glenview, Lincolnwood, Des Plaines and Morton Grove.”
“Our company's platform and specialized marketing campaign
generated a tremendous amount of activity but, in the end, the portfolio was
acquired by a well-qualified and experienced local healthcare investment
group,” says Lollio.
“MBRE Healthcare is the perfect buyer for this offering,
as it appreciates the considerable value in owning and managing such a
significant healthcare real estate investment in its own backyard.”
 |
| Gino Lollio |
A few key assets within the portfolio are the 86,503-square-foot, two-story steel and brick medical facility in Morton Grove, Ill.; the 60,500-square-foot Des Plaines, Ill. building; and lastly, the 40,011-square-foot Chicago, Ill. building that has excellent visibility and signage from the Kennedy Expressway (I-90/94).
Other
tenants in the portfolio include Advocate Health Care, NorthShore University
HealthSystem, Resurrection Health Care (Presence Health), Metro Infectious
Disease Consultants, and Pain Specialists of Greater Chicago.
For a complete copy
of the company’s news release, please contact:
Gina Relva
Public Relations
Manager
(925) 953-1716
No comments:
Post a Comment