The Hearn Company will convert four office floors at 875 N. Michigan Ave. to accommodate clinical and surgical uses creating the Mag Mile Medical Pavilion, a Class-A medical office opportunity. HEARN has selected Cushman & Wakefield to lease the “building-within-a-building” in the mixed-use tower overlooking Lake Michigan and the city’s Magnificent Mile.
HEARN plans to invest more than $10 million into converting, initially, floors 28-30 and 33, totaling 130,000 square feet, into a medical office building within the 100-story landmark. The Mag Mile Medical Pavilion will have a dedicated valet entrance with patient drop-off and pick-up on the north side of the structure, along with a dedicated elevator bank. Secured heated parking with private elevator access to the medical floors will be available as well. For the new project, HEARN has selected Cushman & Wakefield’s Healthcare Advisory Practice to market the property to prospective tenants, with the leasing team consisting of Karoline Eigel, Matt Sullivan, Lindsey Groom and Jack Seher.
Upon completion, which is slated for Q2 2022, the Mag Mile Medical Pavilion will offer the only Class-A healthcare opportunity in a submarket where medical office vacancy is approximately 5%. Additionally, it is immediately adjacent to the Northwestern and Streeterville Healthcare Campuses, a 13.1 million-square-foot medical cluster that is 98.3% occupied and home to Lurie Children’s Hospital, Prentice Women’s Hospital, Northwestern Memorial Hospital, Feinberg School of Medicine, Shirley Ryan AbilityLab and numerous specialty practice groups.
Within a five-mile radius, the population of nearly 750,000 has an average annual income of $133,369, an overall annual healthcare spend of nearly $2.9 billion and a 70% commercial payer mix for healthcare insurance reimbursements.
Cushman & Wakefield will market the Mag Mile Medical Pavilion to health systems and specialty practice groups, offering significant branding and signage opportunities. In addition to its dedicated entrances and elevator banks, it will offer approximately 33,000-square-foot floorplates with 12-foot, 6-inch slab-to-slab ceiling heights to easily accommodate additional piping, duct work and medical equipment; back-up tenant generators to ensure life-safety redundancy; and additional exhaust and supply air that can be easily accessed on each tenant floor.