Centegra Health System (now part of Northwestern Medicine) was in the process of acquiring McHenry County Orthopedics, a leading regional orthopedic practice located in close proximity to four Centegra hospitals and in the highly desirable Chicago suburb of Crystal Lake. However, the physician practice owned its medical office building, and Centegra was not interested in acquiring the property. The health system preferred that the property be owned and managed by an institutional investment partner with professional real estate management experience.
In executing the acquisition of the medical office building, Remedy negotiated a new long-term lease with the health system, achieved the physician owners’ desired investment goals in the purchase/sale of the property, and enabled Centegra to complete the strategic acquisition of the practice. Not long after, Centegra partnered with Remedy again to execute a similar but larger portfolio transaction involving some hospital-owned medical office buildings on two Centegra campuses as well as several off-campus locations.
Transaction Date: January 2016
physician practice acquisition
of physicians achieved