In the Detroit area and across Southeast Michigan, medical office continues to be a strong performer. With healthcare being one of the state’s largest and fastest-growing economic drivers, an aging population and a robust system of public, private and university hospitals across the region, a generally positive growth trend seems unlikely to change anytime soon. Farbman Group’s own portfolio of 4 million square feet is currently more than 95 percent occupied, and quality medical office space remains in high demand. There are, however, some noteworthy developments taking place both inside and outside the healthcare industry that are shaping its future. Medical office real estate trends locally and regionally are beginning to reflect those changes. Consolidation Wave Perhaps the healthcare trend with the most significant potential to alter the medical office and medical real estate marketplace in Southeast Michigan is that of consolidation — healthcare systems coming together via mergers, acquisitions and strategic partnerships. This trend is, in some respects, similar to what has occurred in the banking industry during the last decade. We are likely to see the same kind of phenomenon continue to pick up momentum in healthcare during the next five years or so. There are three primary …
CHICAGO — Acting on behalf of LaSalle Investment Management, Jones Lang LaSalle has secured $125 million in acquisition financing for Onterie Center, a two-building residential and commercial property located at 441 E. Erie St. in Chicago. New York Life provided the financing. Designed by Skidmore, Ownings & Merrill and completed in 1986, Onterie Center features a 60-story, 583-unit residential tower with 102,616-square feet of fully leased commercial space and an 11-story tower with 32 luxury loft units. Commercial tenants include Northwestern University, the Rehabilitation Institute of Chicago, Northwestern Memorial Hospital, Streeterville MRI and KinderCare daycare center. David Hendrickson, Keith Largay and Ian Russell of Jones Lang LaSalle brokered the transaction.
INDIANAPOLIS — Becovic Cos. has plans to develop a $12 million apartment complex in Indianapolis. The development, The Preserve at Willow Springs, will be located at 8845 Township Line Road and has received final zoning approval from the Indianapolis City Council. The master-planned community will consist of 90 luxury one- and two-bedroom apartment homes with direct access garages and high-end finishes. The community will be based on a green building design and promote environmental consciousness with residents by providing green initiatives including a solar-paneled clubhouse, electric vehicle charging stations, tankless water heaters and more. Texas-based architectural firm Humphreys & Partners designed the community. The first apartment homes will be available for occupancy in June.
SAINT CLOUD, MINN. — Marcus & Millichap has arranged the sale of a building occupied by Advance Auto Parts for $1.3 million in Saint Cloud, located about 65 miles northwest of Minneapolis. The 6,830-square-foot, net-leased property is located at 2550 2nd St. Matthew Hazelton and Adam Prins of Marcus & Millichap represented the seller, an individual/personal trust. An outside brokerage represented the buyer, an individual/personal trust, in the transaction.
LINCOLNSHIRE, ILL. — Meridian Design Build has completed a 100,280-square-foot building expansion to Kubota Engine America’s headquarters in Lincolnshire. The expansion includes 81,880 square feet of additional plant/warehouse space and 18,400 square feet of space designed to serve as future offices. Site improvements were also completed to create more employee parking to accommodate Kubota’s future growth. Kubota is a manufacturer of compact diesel and gasoline engines. Timothy Morgan Associates provided architectural services for the project, and Manhard Consulting completed the civil engineering work.
HOFFMAN ESTATES, ILL. — LPC Realty Advisors, on behalf of a pension fund client, has purchased Greenspoint Office Park, a three-building, Class A office portfolio, for $23.5 million. The office property, which spans 489,635 square feet, includes Barrington Pointe building, 148,385 square feet; Greenspoint I, 202,838 square feet; and Greenspoint III, 147,412 square feet. The properties are located at 2300 N. Barrington Road, 2800 W. Higgins Road and 2895 Greenspoint Parkway at the interchange of Interstate 90 and Barrington Road. HFF represented the seller, Multi-Employer Property Trust, in the transaction.
BLOOMSDALE, MO. — McGrath & Associates has completed construction of the $5 million Bloomsdale Medical Center, an expansion of Ste. Genevieve County Memorial Hospital in Bloomsdale, located about 50 miles south of St. Louis. The new facility is a regional center for women’s and family health. The center offers diagnostics, breast care and imaging with five exam rooms, digital mammography, as well as conference rooms and a massage area. Archimages was the architect.
COMMERCE TOWNSHIP, MICH. — Bernard Financial Group has arranged a $2 million loan for a building occupied by CVS/Pharmacy. The 10,880-square-foot building is located in Commerce Township, about 35 miles west of Detroit. The borrower is Bogie Commerce Associates II LLC. Dennis Bernard and David Dismondy of Southfield, Mich.-based Bernard Financial Group originated the loan.
CHICAGO — Chicago law firm Franczek Radelet P.C. has signed a 10-year extension of its 36,113-square-foot lease at 300 S. Wacker Drive in Chicago. The 512,350-square-foot, 35-story 300 S. Wacker building is currently 90 percent occupied. Melissa Rubenstein and John Beason of Jones Lang LaSalle represented the building’s owner, an affiliate of Norfolk, Va.-based Harbor Group International, in the transaction. Corby Marx, and Michael Marrion of Transwestern represented Franczek Radelet.
ST. PETERS AND ARNOLD, MO. — Northern Tool + Equipment has signed two, 10-year retail leases in metro St. Louis. One lease was for a 15,061-square-foot building in the Cave Springs Shopping Center, located at 4055 Veterans Memorial Parkway in St. Peters about 30 miles west of St. Louis. Mike Swearngin of Pace Properties represented the landlord in the St. Peters transaction. The second lease was for a 15,631-square-foot building, located at 233 Arnold Crossroads Center in Arnold about 18 miles south of St. Louis. Tom Egan of Wm. Boudoures Co. represented the landlord in the Arnold transaction. Burnsville, Minn.-based Northern Tool + Equipment has more than 70 locations in 14 states and sells a wide variety of products, ranging from consumer goods to industrial and construction equipment. Venture Commercial represented Northern Tool in both transactions.