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.

HSA PrimeCare Celebrates Completion of the Hawthorn Surgery Center in Vernon Hills, IL

Dan Miranda, president of HSA Commercial Real Estate, and John Wilson, president of HSA PrimeCare, announced today that HSA PrimeCare has finalized development of the Hawthorn Surgery Center, a 15,200-square-foot state-of-the-art outpatient clinic to be occupied by Hawthorn Surgical Associates (“Hawthorn”), a subsidiary of Surgical Care Affiliates LLC. The newly-completed ambulatory care center located at 240 Center Drive in north suburban Vernon Hills, Ill. features three surgical suites, one procedure room, and 14 recovery stations.

“We are very excited about presenting our new Vernon Hills location to our patients in the coming weeks,” said Julie Bell, administrator at Hawthorn. “The final design and delivery of the building has really exceeded our expectations, especially given how smooth the construction process was for us.”

Hawthorn selected HSA PrimeCare, the national health care real estate division of Chicago-based HSA Commercial Real Estate, in 2012 as its development partner to plan, develop, and own the property. HSA PrimeCare also consulted with Hawthorn to estimate and allocate costs for the requisite Certificate of Need application and to coordinate with the village of Vernon Hills and neighboring land owners on an extensive re-platting process. HSA PrimeCare executed the project on a tight 7-month construction schedule in order to ensure a smooth transition from Hawthorn’s current facility in Libertyville, Ill.

“By every measure possible, the new Hawthorn Surgery Center in Vernon Hills will help the practice deliver on its goal of offering the highest-quality surgery experience in a neighborhood location that patients will find very comfortable and easily accessible,” said John Wilson. “We anticipate the practice and its patients to be very pleased with their new facility.”

HSA PrimeCare Completes Sale of 23,000 SF Indianapolis Medical Office Building to Multi-Specialty Surgery Center

HSA PrimeCare announced today that the firm has completed the sale of the North Meridian Medical Center at 10601 North Meridian Street in Indianapolis, Ind. The 23,000-square-foot facility, located at the intersection of 106th Street and Meridian Street at the gateway of the North Meridian Medical Corridor, was purchased by Carmel Medical Office Building LLC, an affiliate of Multi-Specialty Surgery Center. The surgery center affiliate is a tenant of the building seeking to expand its current practice.

Built in 1981 and remodeled in 1993, North Meridian Medical Center is a two-story, off-campus medical office building located approximately twelve miles north of Indianapolis’ central business district. The property is less than one mile south of the 170-bed Indiana University Health North Hospital. The North Meridian Medical Center is also adjacent to the St. Vincent’s Heart Center of Indiana and is less than three miles north of the 776-bed St. Vincent Indianapolis Hospital, which is St. Vincent Health’s flagship facility.

Robert Titzer, executive vice president with HSA PrimeCare, represented the seller in the transaction.