A string of Chicago area medical office deals continued last week when Atlanta-based Meadows & Ohy bought a property in a western suburb for $18 million, public records show.
The firm took out a $12 million mortgage from Tupelo, Mississippi-based Renasant Bank to finance the purchase of a University of Chicago primary care office at 11 Salt Creek Drive in Hinsdale.
Chicago-based seller MedProperties Group first bought the building for $15 million in 2013 with an $8 million loan from American Chartered Bank, which was later acquired by MB Financial Bank and then Cincinnati-based Fifth Third Bank in 2019.
Representatives of Meadows & Ohy and MedProperties Group did not respond to requests for comment.
The medical office sale is also the latest in a series of medical office transactions throughout the Chicago area, as investors seek safe bets amid a depressed market for traditional office properties and steep competition among multifamily buyers.
In January, Irvine, California-based IRA Capital bought the ground lease for the Advocate Health Care medical office building at 3000 North Halsted in Chicago’s Lakeview neighborhood from Nashville-based Healthcare Realty Trust for $56 million.
Then in March, Scott Goodman’s Farpoint Development, in a joint venture with Dallas-based Landes Group, bought a medical office building at the Silver Cross Hospital Campus in suburban Chicago’s New Lenox for $88 million.
In the same month, four Chicagoland senior living communities traded for a total of $217 million, with three of the four sales completed at a markup from their prior sale price.
Also on the North Shore, Skokie-based private equity firm Cascade Capital Group sold two post-hospital rehabilitation centers, The Grove at Evanston and The Grove at The Lake, for a total of $33 million, also in March.
Not long after, New York-based CBRE Investment Management purchased the 149-unit Belmont Village Senior Living Lincoln Park facility on Chicago’s North Side from Houston-based Belmont Village Senior Living for $151 million.
And most recently, Publicly traded medical property specialist Welltower sold two Chicago-area medical ground leases — the Endeavor Health Elmhurst Hospital lease and a medical office complex lease in Addison — to Endeavor Health in April for a combined $57 million.
The notable medical-related transactions tracked by The Real Deal since the beginning of the year top $600 million in value.