An Arizona REIT’s $40 million pickup of a Streeterville medical office complex was May’s priciest commercial property acquisition.
Healthcare Trust of America’s purchase of the 82,000-square-foot Streeterville Center accounted for nearly 30 percent of the total spent in May’s five priciest commercial buys. Medical facilities have been a strong performer for some investors, unlike other commercial assets such as big-box retail.
A joint venture of Minnesota-based Hath Companies and Chicago-based Syndicated Equities made the list twice, spending a total of $52.8 million on two O’Hare-area hotels.
In all, May’s five priciest deals added up to $136 million in combined sales. That’s more than the $125 million spent on April’s five biggest deals and the $80 million totaled by the top five commercial sales of March.
All sales figures were compiled from Cook County property records.
233 East Erie Street | $40 million
Scottsdale, Arizona-based Healthcare Trust of America paid $40 million for the first eight floors of the Streeterville Center, which include more than 82,000-square-feet of office space. Many of the building’s tenants are medical offices, since the building is across the street from Northwestern Memorial Hospital. About 6,000 square feet of space currently is available in the building. Selling the property was a special-purpose entity controlled by Deanne Thomas.
2. 5225 Prairie Stone Parkway, Hoffman Estates | $32.6 million
This Cabella’s store in suburban Hoffman Estates was picked up by the parent company of Bass Pro Shops, which acquired Cabella’s in 2017 as part of a $4 billion deal. Cabella’s was the seller in the deal. The 185,000-square-foot Hoffman Estates Cabela’s was the first of the retailer’s locations in Illinois and includes an indoor archery test area and a fishing aquarium.
3. 5460 North River Road, Rosemont | $28.5 million
Hath Companies and Syndicated Equities paid $28.5 million for the 369-key DoubleTree Rosemont, the pricier of the two hotel deals the venture closed on in May. Selling the hotel was Prudential Insurance subsidiary PGIM and Dow Hotel, which took a massive loss on the deal after buying the DoubleTree for $61.4 million in 2007. The hotel near O’Hare Airport also includes a Gibson’s steakhouse.
4. 5500 River Road, Rosemont | $24.4 million
The same joint venture that picked up the DoubleTree also picked up the neighboring Embassy Suites Rosemont for $24.4 million. PGIM and Dow Hotel took another loss on this deal, after paying $39 million for the 294-room hotel in 2000 and then spending $10 million on upgrades. The duo lost a combined $47 million on the two sales.
5. 1400 West Fulton Market | $10.5 million
A venture of local real estate bigwigs paid $10.5 million for about half of the 27 office condos in the 33,000-square-foot building on the western edge of Fulton Market. The investors include Belgravia Group founder Buzz Ruttenberg, NARE Group principal Savas Er and Newmark Knight Frank executive Joel Simmons. The 111-year-old building was a warehouse until 2008, when another group of investors converted it into commercial condos. Plans for the property have not been announced.