Arizona REIT pays $40M for Streeterville medical office condos

The Phoenix-based REIT bought floors 1-8 at the Streeterville condo tower

Jun.June 19, 2019 02:00 PM
Healthcare Trust of America CEO Scott Peters and the Streeterville Center (Credit: Google Maps)

Healthcare Trust of America CEO Scott Peters and the Streeterville Center (Credit: Google Maps)

An Arizona REIT specializing in medical facilities acquired a Streeterville office condo next to Northwestern Memorial Hospital.

Scottsdale-based Healthcare Trust of America in early June paid $40 million for floors 1 through 8 at 233 East Erie Street, known as the Streeterville Center, Cook County property records show.

The Streeterville Center sits below residential condos in the 26-story building constructed in 1968. The 82,000 square feet of office space is primarily marketed to medical tenants and includes spaces of 200 to 2,000 square feet, according to a marketing video for the property.

The complex also features a parking garage.

Healthcare Trust of America owns 434 medical office buildings in 32 states. This appears to be its first acquisition in Chicago, according to its website. The building has four available office spaces totaling just under 6,000 square, the REIT’s website states.

A company spokesperson did not respond to a request for comment.

Selling the property was a special-purpose entity controlled by Deanne Thomas, which acquired the office condos from a trust in 2013 though no money changed hands, property records show. Thomas could not be reached for comment.

With stable, institutional tenants on long-term leases, medical facilities have been a profitable sector for some REITS and other investors. Ventas, the Chicago-based REIT, has seen growth spurred by its $1.5 billion investment in medical research facilities as its primary market, senior living facilities, stalls.

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