This multi-use high-rise with a single-entity seller required a unique buyer who could creatively solve for the complexity of the investment. Remedy responded by teaming with Arbor Lodging Partners and Metro Park Inc. on the acquisition and by vertically subdividing the Class A, 40-story property into medical office space (floors 7-13), hotel space (floors 14-40), and parking garage (floors 2-6). By partnering with specialists, Remedy and the other two buyers could focus on their respective investment expertise. The building is located in Chicago’s Near North Side medical district, across the street from Northwestern Memorial Hospital, Lurie Children’s Hospital, and the Shirley Ryan AbilityLab.
The medical office space, which is 99% leased, is home to prominent healthcare providers such as the Osher Center for Integrative Medicine at Northwestern University and the Eating Recovery Center. High demand for space in the building is expected to continue, as the average occupancy rate for medical space within a five-mile radius is 97%. The adjacent Northwestern Memorial Hospital campus receives more than 2.5 million outpatient visits annually and was recently named by U.S. News & World Report as the best hospital in Illinois for the seventh consecutive year.
Transaction Date: October 2018
square feet of medical space
floors of medical space
occupancy of medical space