CHICAGO—The Affordable Care Act has already begun changing how healthcare providers serve patients, with many putting more emphasis on smaller, easy-to-access specialized facilities. And investors should follow suit as they sift through possible deals. Avison Young certainly hopes so, as its capital markets team in Chicago has been awarded the exclusive sale listing for a six-building, 170,000-square-foot medical office building portfolio in Northwest Indiana.
“This will be one of the more significant Midwest medical office portfolio transactions to occur in quite some time, with an excellent AA credit tenant base and long term leases, buyer interest from national and international sources will be strong," says Mike Wilson, a principal in the capital markets group. He will lead the effort along with Erik Foster, a principal and the practice leader of the firm's national industrial capital markets team.
The Franciscan Alliance, one of the Midwest's largest Catholic healthcare systems with 13 campuses and annual revenues of $2.4 billion, has long-term leases for 85% of the portfolio's space.
"This offering represents a microcosm of the new healthcare delivery model under the Affordable Care Act with large systems expanding through acquiring top physician groups and pushing more multi-specialty care facilities off of the primary campus to ambulatory sites near the patient base,” Wilson adds.
The six buildings include a Franciscan medical mall campus of three buildings in Munster. One is still under construction, but it will be finished by next month and is 100% preleased. The three remaining buildings include Franciscan multi-specialty facilities at 2001 US Rte. 41 in Schererville, 919 Main St. in Dyer, and 5529 Hohman Ave. in Hammond.
The Avison team also includes principal Phil Palmer and senior vice president David Krasnoff.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
