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 EVP Robert Titzer Explains the Rise of Medical Office in Mixed-Use Developments in Commercial Property Executive Q&A

This week, Commercial Property Executive published a Q&A with HSA PrimeCare EVP, Robert Titzer discussing his prediction that the need for outpatient medical services will continue to increase and mixed use developments will benefit from incorporating a medical component.

As the modern healthcare consumer demands increased accessibility, healthcare providers seek to bring medical services closer to their patient bases. This means more facilities in highly visible locations. Developers are able to meet this need by adding medical facilities to mixed-use developments while also benefiting from the stability that this product type offers.

Robert Titzer, EVP

“Medical offices can be incorporated into a wide variety of mixed-use developments,” said Titzer. “Everyone needs health-care services, at all income levels, and essentially wherever people live and work.”

Access and parking can present significant challenges when incorporating medical into mixed-use developments. Since patients may be sick, injured, or elderly, special attention must be given to ensuring smooth patient flow in and out of the development.

“Medical facilities operate best when their patients do not have to compete for parking or access with other component users of the development,” according to Titzer. “They need drop-off areas and protected parking close to their destinations.”

One example of this is HSA PrimeCare’s recent multi-specialty medical development in Drexel Town Square with Froedtert & the Medical College of Wisconsin.

“Drexel Town Square is an exciting new ‘front door” for Oak Creek, Wis., and having a health-care component dovetailed perfectly with the development’s mix of community, retail and residential uses. Its location made perfect sense for Froedtert & the Medical College of Wisconsin. As part of a larger 85-acre mixed-use project that includes a new city hall, public library, shopping, restaurants, service-oriented businesses, hotel and apartments, a MOB fits into this modern, master-planned development.”

To read the full Q&A, visit the Commercial Property Executive website.

HSA PrimeCare Team Prepares Lunch for Ronald McDonald House Residents in Streeterville

Last week, the HSA PrimeCare Team worked together to prepare lunch for the residents of the Ronald McDonald House in Streeterville near Lurie Children’s Hospital. Alongside the Ronald McDonald House chef, the team of six HSA PrimeCare volunteers prepared a Mexican-themed lunch complete with shrimp and beef tacos, homemade pico de gallo, black beans, Spanish rice, corn salad, cheese quesadillas, and fruit.

Particularly for families who travel far to seek the medical care their child needs, parents often find themselves eating out of vending machines and racking up unaffordable hotel bills. Ronald McDonald Houses help families stay together and focused on what’s important – the health of their child. The organization provides private rooms, home-cooked meals, child play areas, and other services to the families of children facing a severe medical crisis, allowing them to focus on the care of their child without the added stress of searching for affordable and convenient housing and food. Through the Culinary Hearts program, HSA PrimeCare volunteers had the pleasure of preparing and serving lunch to these families and packing to-go boxes for families who could not attend lunch at its regularly scheduled time.

The HSA PrimeCare team is excited and proud to have volunteered with this impactful organization, and we look forward to many more years of participation.

Ronald McDonald House Charities is able to make a difference in the lives of so many families, thanks to the generosity of volunteers dedicating their time, talent, and resources to the organization. We encourage all of our friends and partners to visit the Ronald McDonald House website to learn how you can lend a hand.