Marcus & Millichap closed the sale of a fully leased, 65,900-square-foot medical office building located at 707 N. Logan Avenue in Danville, Illinois. The property sold for $9.7 million.
“Medical office buildings are desirable investments for a variety of reasons, including strong tenant credit, the growing need for healthcare services and high lease renewal rates,” said Frank Roti, first vice president of investments in Marcus & Millichap’s Chicago Downtown office. “707 N. Logan Avenue has all these attributes plus a strong anchor tenant and good net cash flow. This is the type of stable, well-performing asset many investors prefer, and it was an easy choice for the buyer.”
Roti and Brett Rodgers, first vice president of investments, and Jacob Friedman, associate, represented the private seller and procured the buyer, a private equity firm. Roti and Rodgers have concentrated on the national healthcare and GSA sectors since 2010.
“Despite the obvious challenges presented by the COVID-19 pandemic, we handled a similar volume of multi-tenant medical office building sales in the March 15 to May 15 period this year compared to last, and the average deal size is actually up substantially,” said Alan Pontius, senior vice president of Marcus & Millichap’s office and industrial division. “The appeal medical office buildings hold for our larger private client and institutional investors continues to be strong and the long-term outlook for medical office investments remains positive.”
Built in 1994, the property is a four-story building with convenient access to U.S. Routes 136 and 15 and Interstate 74, and proximity to other healthcare providers, retail and restaurants. 707 N. Logan has two tenants, one of which, OSF HealthCare, has a new 10-year lease with guaranteed annual rent increases.