A softening commercial real estate market makes for high demand on properties with long-term anchor tenants. The latter probably nudged Montecito Medical Real Estate into pulling the trigger on a three-story office building in suburban Rosemont.
The Tennessee-based company put up nearly $30 million for the building at 5400 Pearl Street, near O’Hare International Airport, Crain’s reported. Although terms were not disclosed, people familiar with the deal confirmed the price for the 97,500-square-foot building.
ACL Laboratories, a subsidiary of Advocate Aurora Health Lab testing, has the entire property locked up through the next 10 years, adding a sweetener for Montecito.
Dell Corp., a Skoki Wisconsin-based real estate investment firm, bought the property for $24.3M in 2017.
The capital markets team in the Chicago office of Cushman & Wakefield represented Dell. Montecito’s broker is unknown.
Medical buildings have been a hot commodity for investors in the greater Chicago area. Hollywood California-based investment group Savlan Capital bought an 18,000-square-foot medical building in Blue Island for $6.1 million as well as the Edison Lakes Medical Center, which consists of 10 medical office condominiums totaling almost 50,000 square feet, in Mishawaka, Indiana for $8.6 million.
Also, Canadian health care real estate investor NorthWest Healthcare spent $120 million on five Chicago-area medical office buildings as part of its $602 million entrance to the U.S.
The Rosemont building’s proximity to O’Hare International Airport was also a draw for Montecito as it’s one of the most in-demand submarkets for office space in the suburbs.
Chicago-based BA Investment Advisors is under contract to pay $40 million for the Pointe O’Hare office building at 9550 West Higgins Road, also in Rosemont.
Montecito also purchased another suburban medical office building. Last month the company bought a 20,000-square-foot gastroenterology outpatient facility in Naperville.
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Commercial
Chicago
Canadian REIT pays $120M for Chicago-area medical offices in US entry
— Victoria Pruitt