Project Description

Fletcher Drive Medical Center

745 Fletcher Drive
Elgin, IL 60123
View Map

Property Type:
Multiple Tenant Medical Office Condominium

Property Sale Price:
$10,024,514

Square Footage:
39,734

Major Tenants:
Advocate Health Care (S&P AA+), Illinois Gastroenterology Group, Elgin Gastroenterology Endoscopy Center (ASC), Elgin Internal Medicine, Urology, Ltd., General Vascular Surgery, Elgin Internal Lab, and Urology Ltd., Advocate Health Care

Highlights

•  100% occupied medical office condo building | Seven medical office condos individually owned by physicians
•  32% of rentable square feet leased by Advocate Health Care (S&P AA+)
•  All brand new five and ten-year leases include annual rent escalations of 2.00% or greater
•  At closing, new owner converted asset to a standard multi-tenant medical office building
•  Significant value was Added by Lollio and Niedergang by creating a streamlined process that allowed for valuation consultation, new lease structuring, marketing, offer negotiation, and a due diligence process for each condo unit owner simultaneously

Print Details

Contact Agents:

Scott Niedergang Managing Director, Healthcare Advisory Practice | Capital Markets Direct: (312) 338-7060 Cell: (312) 342-4495 scott.niedergang@cushwake.com
Gino Lollio Managing Director, Healthcare Advisory Practice | Capital Markets Direct: (312) 338-7061 Cell: (239) 810-4714 gino.lollio@cushwake.com

Texas Broker of Record:

Teddy Leatherman

Summary

Gino Lollio and Scott Niedergang of Cushman & Wakefield’s Healthcare Capital Markets team have facilitated the sale of the Fletcher Drive Medical Center located 40 miles northwest of Chicago in Elgin, Illinois.

Fletcher Drive Medical Center consisted of seven individually owned medical office condominiums that were owned by the physicians seeing patients out of their suites.  Prior to sale, Scott and Gino consulted the condo association on how to maximize the value of their individual units by pursuing a portfolio sale of all the units simultaneously.  At closing, the new owner collapsed the condo association and converted the asset to a standard multi-tenant medical office building.

As part of the sale, each physician group that owned their unit agreed to new five and 10-year leases with annual 2.00% rent escalations.  Tenants in the facility included Advocate Health Care, Illinois Gastroenterology, Urology, Ltd., Elgin Internal Medical Associates, and Elgin Gastroenterology Endoscopy Center.  Elgin Gastroenterology Endoscopy Center is an ambulatory surgery center (ASC) with a certificate of need (CON) in-place.  The building was 100% occupied at time of sale.

“By agreeing to pursue a sale together, the condo owners at Fletcher Drive Medical Center were able to realize a pricing premium.  The buyer pool for this asset in its entirety is much larger than a one-off medical office condo sale,” says Niedergang.  “Our team was able to add significant value by creating a streamlined process that allowed for valuation consultation, new lease structuring, marketing, offer negotiation, and a due diligence process for each condo unit owner simultaneously.”

Lollio adds, “Opportunities to acquire 100% occupied medical office buildings with a strong mix of synergistic tenants are few and far between in the Chicagoland market.  The inclusion of an ambulatory surgery center combined with the strategic location between Advocate Sherman Hospital and Presence Saint Joseph Hospital made this a unique investment that saw significant interest from the market.”

Additional Photos

To discuss your prospective real estate needs or to learn more about our track record, click here to
Contact Our Team