HSA PrimeCare Completes Sale of Four-Building, 107,828 SF Midwest Medical Office Portfolio to IRA Capital

Clockwise from left: Advocate Good Samaritan South Campus in Downers Grove, Illinois; Hawthorn Surgery Center in Vernon Hills, Illinois; Advocate Aurora Health Beverly Clinic in Chicago, Illinois; Advocate Aurora Health Clinic in Muskego, Wisconsin.

HSA PrimeCare, the national healthcare real estate division of Chicago-based HSA Commercial Real Estate, today announced the firm has finalized the sale of four medical office buildings in Illinois and Wisconsin totaling 107,828 square feet to Irvine, Calif.-based IRA Capital. HSA PrimeCare will continue to manage the assets on behalf of their new owner.

“Our team has enjoyed the challenge of developing and enhancing the value of these medical office building assets over the last decade, and we look forward to continuing to manage these properties on behalf of IRA Capital,” said John Wilson, president of HSA PrimeCare. “With increased development and investor interest in healthcare as an asset, HSA PrimeCare looks forward to continuing our efforts to develop new quality outpatient facilities with our healthcare partners.”

The portfolio includes investment-grade, hospital-anchored assets that were developed or acquired by HSA PrimeCare, including the following:

  • Advocate Good Samaritan South at 6840 Main St. in Downers Grove, Ill., a 35,011-square-foot outpatient clinic developed by HSA PrimeCare in 2008 and anchored by Advocate Aurora Health
  • Hawthorn Surgery Center at 240 Center Drive in Vernon Hills, Ill., a 15,321-square-foot freestanding surgery center developed by HSA PrimeCare in 2014 as a build-to-suit for Deerfield, Ill.-based Surgical Care Affiliates
  • Advocate Aurora Health Muskego Clinic at S68W15500 Janesville Road in Muskego, Wis., a 24,067-square-foot retail healthcare clinic offering OB/GYN and radiology services, bought by HSA PrimeCare in 2012
  • Advocate Aurora Health Beverly Clinic at 1357 W 103rd Street in Chicago, Ill., a 33,519-square-foot multi-tenant office building constructed in 1955 and redeveloped in 2007 by HSA PrimeCare to house an Advocate Aurora primary care clinic, as well as long with a bank

Mike Wilson and Erik Foster of Avison Young represented HSA PrimeCare in the transaction.

VIDEO: Healthcare Real Estate Trends in 2018

In a video interview recently featured in Commercial Property Executive, HSA Commercial Real Estate Vice Chairman and CEO Bob Smietana offers insights on changes in the healthcare real estate landscape in 2018.

As the delivery of care model continues to evolve in healthcare, Bob expects to see continued growth and development of outpatient facilities in 2018.

“That [delivery of care] model has changed from going to a hospital campus, going to a large parking garage, and having your diagnostic tests done there and seeing your family doctor,” Smietana says in the video. “Healthcare is being delivered in convenient locations to the consumer now.”

Bob references the 109,000-square-foot Drexel Town Square Health Center in Oak Creek, Wis., which HSA PrimeCare developed in 2017 in partnership with Froedtert and the Medical College of Wisconsin, as an example of healthcare providers delivering institutional-quality care in neighborhood locations that are easily-accessible to their patient base. As Bob points out, some health systems are even opening clinics and specialty facilities in shopping centers to take advantage of the visibility, convenience, and synergy that traditional retail environments have to offer.

“[Medical facilities] are giving shopping centers a boost in terms of additional shopper traffic but also allowing diversity in the tenant space in the retail centers themselves,” Smietana adds.

Finally, Bob discusses the joint-venture fund that HSA PrimeCare formed with USAA insurance company to target “value-add existing healthcare real estate” and development opportunities in an 11-state territory across the Midwest. As Bob details in the video, the fund has already acquired four properties since its formation and is currently exploring a variety of new investment opportunities.

2018 is already shaping up to be a busy year for HSA PrimeCare, the national healthcare real estate division of HSA Commercial. Stay tuned to our website for announcements about new acquisitions and development projects!

To watch the entire video interview with Bob Smietana, please visit HSA Commercial’s YouTube page. Click here to read Commercial Property Executive’s coverage of the video.

HSA Commercial Named “Best of the Best” by Midwest Real Estate News

Click the image to see all rankings in the Midwest Real Estate News online edition

Click the image to see all rankings in the Midwest Real Estate News online edition

HSA PrimeCare’s parent company, HSA Commercial Real Estate was recognized by Midwest Real Estate News as one of the region’s “Best of the Best” firms as part of the publication’s annual rankings. Since 2016, HSA Commercial’s management portfolio of industrial, healthcare, retail, and other assets has grown by almost two million square feet earning the firm a spot as one of the top property managers in the Midwest. HSA’s portfolio of owned real estate assets grew similarly based on several new developments and acquisitions including: Commerce Farms V, a 650,000-square-foot distribution center development in Nashville, Tenn.; Drexel Town Square Health Center, a 92,000-square-foot multi-specialty medical center in Oak Creek, Wis.; and new phases of The Mayfair Collection mixed-use development in Wauwatosa, Wis.

Both of the awards received by HSA Commercial are listed below and organized by property type:

 

Top Owner (12,048,800 SF)
Industrial: 9,688,410 sf
Healthcare: 800,040 sf
Office: 330,300 sf
Retail: 1,230,050 sf

Top Property Manager (14,102,460 SF)
Industrial: 10,594,210 sf
Office: 483,240 sf
Retail: 1,230,050 sf
Healthcare: 1,794,960 sf

HSA PrimeCare is the healthcare division of HSA Commercial Real Estate. Complete rankings can be found in the Midwest Real Estate News online edition.