Advocate Sherman Medical Building sold in multi-property deal
The Advocate Sherman Medical Building in Elgin was part of a nine-property portfolio that was sold an anonymous buyer for an undisclosed sum, according to commercial real estate firm CBRE.
CBRE's Chicago office brokered the financing and sale of the package of nine medical buildings in four states, closing the deal on Dec. 11.
"This portfolio offered the opportunity to buy a critical mass of medical assets with exposure to some of the top health systems in the country, including Advocate Aurora Health, Einstein Health and INOVA Health System," said Chris Bodnar, vice chairman of capital markets for CBRE.
Advocate Sherman Medical Building, at 1435 North Randall Road, is a 95,043-square-foot, five-story medical office building on the Advocate Sherman Hospital campus, with direct connections from the center to the hospital on two levels.
An Advocate Health Care spokesperson said its leases space at the building and will remain there as the building changes owners.
In addition to the Elgin building, the portfolio included the 36,413-square-foot Oak Lawn Medical Building in Oak Lawn; the 60,558-square-foot High Pointe Health Campus in Lake Elmo, Minn.; the 71,685-square-foot Einstein Medical Building in East Norriton, Pa.; the 35,405-square-foot Sterling Medical Building in Sterling, Va.; 118,081 square feet across Pavilion I & II in Duluth, Minn.; and 52,105 square feet across CentreMed I & II in Centreville, Va.
Bodnar, Lee Asher, Ryan Lindsley and Jordan Selbiger of CBRE's Healthcare Capital Markets team served as advisers for the transaction and sourced the buyer for the portfolio sale.
Sabrina Solomiany of CBRE's Debt & Structured Finance group worked on behalf of the buyer to secure the financing.
"CBRE worked alongside the buyer to arrange two loans that provided flexibility for the buyer on a portion of the assets and strong cash flow with five years of interest-only on the stabilized properties," said Solomiany. "Ultimately, the lender was comfortable with the relationship with the sponsor, diversification of locations and quality of the real estate."