Out-Of-State Buyers Still Looking To Buy Chicago MOBs

Courtesy of Cushman & Wakefield
1945 West Wilson Ave.

A New England-based investor bought a six-story medical office building at 1945 West Wilson Ave. in Chicago after beating out a collection of out-of-state bidders. The 68K SF property sits on the grounds of the former Ravenwood Hospital, and traded for $13.85M.

Advocate Health Care, one of the largest health systems in Chicago, Anixter Center and Ravenswood Rheumatology, along with several other private healthcare practices, occupy 98% of the building. Constructed in 1972, the building was renovated in 2015.

"Many of the prospective purchasers, including the ultimate buyer, were out-of-state, healthcare-focused private equity groups," Cushman & Wakefield Healthcare Capital Markets Managing Director Scott Niedergang said. "While this speaks to the demand for high-quality healthcare assets, it also reflects positively on the Chicago market.”

Along with Managing Director Gino Lollio, as well as Cody Hundertmark and Tom Sitz of the office sales team, Niedergang represented the seller, and procured the buyer.

The transaction closed March 18, a Cushman & Wakefield spokesperson said.

Chicagoland became the nation's top medical office market in 2019, according to the 2019 U.S Medical Office Trends Report, a year-end study by CBRE. The region saw more than 900K SF of absorption in the sector in the first half of the year, beating out second-place Atlanta, which saw 557K SF absorbed. Chicago-area developers completed nearly 800K SF, while less than 500K SF was finished in runner-up Dallas-Fort Worth.

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