NAI Hiffman brokered an early, long-term lease renewal for Silver Cross Hospital at 1890 Silver Cross Blvd., a 174,855-square-foot, six-level medical office building known as Pavilion A in New Lenox, Illinois.
Silver Cross healthcare providers occupy 87,461 square feet, which includes the first two levels as well as eight suites on the upper four levels. Other tenants in the building include the Shirley Ryan AbilityLab at Silver Cross and independent healthcare providers.
“As a mission-based organization, Silver Cross is always focused on what matters most: delivering exceptional care to our patients and our community,” said Silver Cross Executive Vice President and Chief Financial Officer Vince Pryor. “This early lease renewal and the remarkable savings resulting from it will allow us to redeploy valuable resources directly into world-class healthcare programs, services and technologies that will benefit our patients and communities today and far into the future.”
Perry Higa, executive vice president, corporate services at NAI Hiffman, represented Silver Cross in the lease renewal, and Steve Brooks and Katie McReynolds of NexCore Group represented the owner, Prudential Real Estate Investors.
Higa and Pryor strategized and initiated lease negotiations to reduce costs and restructure the hospital’s lease term and obligations. Completed nearly two years ahead of its original lease expiration in fourth-quarter 2026, the renewal accomplished several business objectives for Silver Cross, including:
- a significant reduction of the net rental rate for immediate savings,
- a newly negotiated ground lease, which is a long-term revenue stream for Silver Cross,
- landlord reimbursement for Silver Cross’ past renovations of first- and lower-level spaces for lab, MRI, X-ray and other medical equipment,
- a large tenant improvement allowance and favorable terms for future renovations of existing medical offices.
