Avison Young’s Chicago Capital Markets Team led by Erik Foster and Mike Wilson has been awarded the exclusive sale listing for a six-building, 170,000-square-foot medical office building portfolio in Northwest Indiana.
The S&P “AA” rated Franciscan Alliance, one of the Midwest’s largest Catholic healthcare systems with 13 campuses and annual revenues of $2.4 billion, leases 85 percent of the space in the portfolio long term. Franciscan has made significant recent expansions through acquisitions and development.
The Avison Young team also includes Principal Phil Palmer and debt specialist Senior Vice President David Krasnoff.
“Medical office buildings have been and remain one of the hottest asset classes for investors due to their strong values, steady cash flows for investors and resistance to recessions,” said Foster, an Avison Young principal in the Capital Markets Group.
“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,” said Wilson, who is also a principal at Avison Young in the Capital Markets Group. “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.”
The six buildings in the offering include a Franciscan medical mall campus of three buildings in Munster (one of them currently under construction to be delivered in May 2014 and 100 percent preleased).
The three remaining buildings in the portfolio include Franciscan multi-specialty facilities in Schererville (2001 US 41), Dyer (919 Main St.) and Hammond (5529 Hohman Ave). All buildings have long-term leases.