A South Florida company bought an 18,000-square-foot medical building in the Chicago suburb of Blue Island for $6.1 million.
Hollywood-based investment group Savlan Capital also added the Edison Lakes Medical Center, which consists of 10 medical office condominiums totaling almost 50,000 square feet, in Mishawaka, Indiana, to its portfolio. The sale price for that building was $8.6 million.
The Blue Island building, located at 12200 South Western Avenue, was developed in 2007 as a retail strip center and sits on a 1.1-acre site just west of Interstate 57. It is fully leased to healthcare providers Fresenius, Dental Dreams and Midwest Express Clinic.
Savlan Capital said in a press release that it has purchased more than 20 medical assets across the country valued at over $100 million in the past year. The investment group’s portfolio consists of single-tenant medical office buildings, business parks, flex properties, and multifamily communities throughout the United States.
In written comments provided by a media representative, Chief Executive Officer Zusha Tenenbaum touted the location and assets of both the suburban Chicago and South Bend properties.
“Medical needs to have good visibility and accessibility and both assets fit that bill,” he said. “It’s really ‘retail medical.’ Convenience is key for the people who visit our tenants.”
Tenenbaum added that the Edison Lakes Medical Center is in the second-busiest retail corridor of Indiana and close to two hospitals that attract patients from a 100-mile radius.
“It is truly a medical center for the surrounding area,” which continues to grow.
Eric Cline of Cushman & Wakefield represented the seller for the Chicago-area property, Shops at Blue Island LLC. The Marcus & Millichap team of Joseph DiSalvo, Forest Bender and Alexander Hull represented the seller in the Indiana sale, EL Medical Center, LLC.
In 2021, Tenenbaum told commercial real estate news website Globe Street that single-tenant health care facilities provide a buffer against e-commerce and recessions.
“As the pandemic was developing, we saw the value of having medical tenants for being e-commerce proof, recession-proof and pandemic-proof,” Tenenbaum told the outlet.
Savlan, whose portfolio spans the U.S., made a $26 million acquisition in February that included the purchase of a Dallas medical building for $7 million.
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