Harrison Street Completes The Largest Chicago-Area Healthcare Real Estate Deal In Years

430 Warrenville Road, Lisle, Illinois
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430 Warrenville Road In Lisle.

Harrison Street Real Estate Capital is swinging for the fences, a month after Colliers acquired a 75% stake in the firm. Harrison Street is working on a $240M deal for an eight-building medical office portfolio totaling 439K SF, Crain's Chicago Business reports.

The seller, DuPage Medical Group, will lease back the buildings. DuPage Medical, the largest independent physicians group in Illinois, has been on a two-year expansion trajectory. It received a $250M investment from Summit Partners in January 2016, which allowed the group to buy smaller practices and open new offices. Ares Management invested $1.45B in DuPage Medical in August, which will allow the company to expand outside of the Chicago market.

The portfolio includes:

  • 430 Warrenville Road, a 95K SF buiding in Lisle ($52M).

  • 17495 South La Grange Road, a 71K SF building in Tinley Park ($29.5M).

  • 454 Pennsylvania Ave., a 91K SF building in Glen Ellyn ($41.3M).

  • 2725 Technology Drive, a 29K SF building in Lombard ($15.3M).

  • 808 Rickert Drive, a 51K SF property in Naperville ($23.7M).

  • 2100 Glenwood Ave., a 12K SF building in Joliet ($24.5M).

  • 1807 South Highland Ave., a 47K SF property in Lombard ($30.8M).

  • 220 Springfield Drive, a 55K SF building in Bloomingdale ($23M).

Investors continue to be bullish on healthcare real estate, even with the uncertainty over the Affordable Care Act's future. Harrison Street has been one of the biggest players in the sector. The firm paid $368M in January for 28 properties in Minnesota, Wisconsin, Nebraska, Montana and North Dakota.

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