MBRE Healthcare has teamed with Arbor Lodging Partners and Metro Park Inc. in the acquisition of 93,000 square feet of medical office space, a 352-room, dual-branded hotel and a 225-stall parking garage at 150 and 160 E. Huron Street in the Streeterville neighborhood of Chicago’s Near North Side.
The 40-story, Class A building—strategically located across the street from Northwestern Memorial Hospital, Lurie Children’s Hospital and the Shirley Ryan Ability Lab (formerly Rehabilitation Institute of Chicago)—consists of three property types that are vertically subdivided into medical office space (floors 7-13), two sister hotels (floors 14-40) and a valet parking garage (floors 2-6).
“We’re excited to own and manage this well-located, urban property with phenomenal healthcare tenants, including Northwestern Memorial Hospital, University of Chicago Medicine and the Eating Recovery Center,” said Peter Westmeyer, president of MBRE Healthcare. “The closing of this deal adds to an already robust year of growth for our company across the country.”
Northwestern Memorial Hospital’s Osher Center for Integrative Medicine is one of the leading facilities of its kind in the nation, offering integrative medicine and primary care, nutritional counseling, behavioral medicine and chronic pain treatment. University of Chicago Medicine offers such specialties as primary care, a women’s health clinic, internal medicine, cardiology, dermatology endicrinology, pulmonary medicine, gastroenterology, sleep medicine and rheumatology. The Eating Recovery Center is a licensed behavioral hospital with Joint Commission accreditation and the only fully integrated national healthcare group exclusively dedicated to the treatment of eating disorders and related conditions.
The medical office space in the East Huron Street building is 99 percent leased and is expected to continue to experience high demand, as the average occupancy rate for medical space within a five-mile radius is 97 percent. In addition, the adjacent Northwestern University Medical Campus receives more than 2.5 million outpatient visits annually and was recently named by U.S. News & World Report to be the best hospital in Illinois for the seventh consecutive year. Another boost to the building is its location near the Magnificent Mile, which averages more than 50,000 pedestrians a day and has more than 450 retail stores and 275 restaurants.
Other components of the property include the 127-room Homewood Suites Chicago Downtown/Magnificent Mile and 225-room Hampton Inn Chicago Downtown/Magnificent Mile. Chicago-based Arbor Lodging plans a $7 million renovation to the rooms, common areas and more. Metro Park, also based in Chicago, owns and operates several other local parking facilities.
“We couldn’t be happier about our continued investment in the Chicago area, and collaborating with our partners, Arbor Hospitality and Metro Park, on this outstanding property,” said Westmeyer.