Montecito Medical Real Estate drops $30M on Rosemont property

Firm also picks up a long-term tenant that occupies the entire property

 5400 Pearl Street in Rosemont and Montecito Medical Real Estate CEO Chip Conk (LoopNet, Montecito Medical)
5400 Pearl Street in Rosemont and Montecito Medical Real Estate CEO Chip Conk (LoopNet, Montecito Medical)

A softening commercial real estate market makes for high demand on properties with long-term anchor tenants. The latter probably nudged Montecito Medical Real Estate into pulling the trigger on a three-story office building in suburban Rosemont.

The Tennessee-based company put up nearly $30 million for the building at 5400 Pearl Street, near O’Hare International Airport, Crain’s reported. Although terms were not disclosed, people familiar with the deal confirmed the price for the 97,500-square-foot building.

ACL Laboratories, a subsidiary of Advocate Aurora Health Lab testing, has the entire property locked up through the next 10 years, adding a sweetener for Montecito.

Dell Corp., a Skoki Wisconsin-based real estate investment firm, bought the property for $24.3M in 2017.

The capital markets team in the Chicago office of Cushman & Wakefield represented Dell. Montecito’s broker is unknown.

Medical buildings have been a hot commodity for investors in the greater Chicago area. Hollywood California-based investment group Savlan Capital bought an 18,000-square-foot medical building in Blue Island for $6.1 million as well as the Edison Lakes Medical Center, which consists of 10 medical office condominiums totaling almost 50,000 square feet, in Mishawaka, Indiana for $8.6 million.

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Also, Canadian health care real estate investor NorthWest Healthcare spent $120 million on five Chicago-area medical office buildings as part of its $602 million entrance to the U.S.

The Rosemont building’s proximity to O’Hare International Airport was also a draw for Montecito as it’s one of the most in-demand submarkets for office space in the suburbs.

Chicago-based BA Investment Advisors is under contract to pay $40 million for the Pointe O’Hare office building at 9550 West Higgins Road, also in Rosemont.

Montecito also purchased another suburban medical office building. Last month the company bought a 20,000-square-foot gastroenterology outpatient facility in Naperville.

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— Victoria Pruitt