Three experienced commercial real estate professionals serving a niche in the national medical office building (MOB) sector have formed Capital Healthcare Properties to address the needs of leading healthcare systems, physician groups and specialty providers. Daniel Ahlering, Jack Sullivan and Jay Heald, the firm’s founding principals, have also formed a programmatic joint venture partnership with HSG Medical, an affiliate of Hubbard Street Group, to facilitate and launch new development and acquisition initiatives.
Ahlering, Sullivan and Heald will draw on their recent experience with a Chicago-based MOB developer where they completed more than one million square feet in new developments and leasing assignments and earlier within the capital markets and tenant representation groups at JLL. Capital Healthcare Properties provides a menu of services ranging from ground-up development to acquisitions to leasing of owned and third-party assets. On the development front, the joint venture will target medical office buildings ranging from 20,000 to 100,000 square feet.
“Our primary goal in forming Capital Healthcare Properties is to leverage our collective experiences, resources and relationships to lessen a client’s real estate burden. This allows them to focus on providing tremendous patient care, their core business,” said Capital Healthcare Properties Managing Partner Jay Heald.
In partnering with HSG Medical, Capital Healthcare Properties will draw on the experiences and expertise of HSG Medical Principals John McLinden and Kage Brown. Combined, the two have over 45 years of national real estate development experience and have developed over 12.5 million square feet and 5,000-plus residential units, exceeding $3 billion in aggregate capitalization for these projects.
“Strategically we believe the health care industry represents a huge growth opportunity for commercial real estate,” said HSG Medical Principal Kage Brown. “In the aftermath of the pandemic, medical offices remain one of the most resilient and recession-resistant commercial real estate sectors, with low correlation to greater economic and geopolitical trends.”
HSG Medical will provide capital, investment oversight, accounting and administrative services along with office space for the joint venture. The partnership will operate independently from Hubbard Street Group.
The principals’ resume of involvement in new development projects includes work with Northwestern Medicine, Advocate Health, Northwest Community Hospital, HonorHealth and The CORE Institute, among others, in Illinois and Arizona. The development projects, with varying degrees of complexity, range in size from 20,000 to 180,000 square feet. Further, several projects were awarded national and regional awards for development excellence. Specific project highlights include:
- Oak Brook Commons, a 180,000-square-foot ground-up development for Northwestern Medicine that was completed in Q4 2022 and is located in Oak Brook, Illinois.
- NCH Buffalo Grove Outpatient Care Center, a 71,000-square-foot ground-up development for Northwest Community Hospital that was completed in Q3 2021 and is located in Buffalo Grove, Illinois. The project has been recognized for excellence by a variety of healthcare and real estate organizations.
