MILWAUKEE — Newmark has brokered the sale of a medical office portfolio in metro Milwaukee for $28 million. The portfolio comprises two outpatient properties that have each been built in the last 10 years and are fully leased to Children’s Wisconsin. John Malloy of Newmark represented the undisclosed seller. Ben Appel, John Nero, Michael Greeley, Jay Miele and Ron Ott of Newmark’s healthcare capital markets practice provided support on the transaction. The buyer was a joint venture between Montecito Medical and AEW Capital Management.
VALPARAISO, IND. — Marcus & Millichap has arranged the receivership sale of a 43,450-square-foot medical office building in Valparaiso, a city in northwest Indiana. Located at 1425 Glendale Ave., the building is about 75 percent completed. Litigation with a neighboring owner tied up the property in the legal system for an extended period, during which interest rates climbed 525 basis points, says Julia Evinger of Marcus & Millichap. Evinger marketed the property for sale on behalf of the court appointed receiver. The new owner plans to complete and lease the building to medical office tenants.
NEWINGTON, CONN. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $7.3 million loan for the refinancing of a medical office complex in Newington, located just south of Hartford. The address and square footage of the property, which was built in 2005, were not disclosed. Gerald Kray of MMCC arranged the loan, which was structured with a five-year term, 7.5 percent interest rate and 65 percent loan-to-value ratio. The borrower and direct lender were also not disclosed.
FULTON, MD. — A joint venture between Greenebaum Enterprises and St. John Properties has broken ground on the final three commercial buildings at Maple Lawn, a 605-acre mixed-use development in Fulton, a city in the Baltimore-Washington corridor. The properties, all of which are being developed on a speculative basis, include two medical office buildings and an inline retail building cumulatively totaling 85,000 square feet. All three buildings are positioned along Maple Lawn’s northern entrance near Maple Lawn Boulevard and Johns Hopkins Road. Upon the expected delivery in late 2025, Maple Lawn will total 1.8 million square feet of Class A offices, industrial facilities, research-and-development space, medical offices, shops and restaurants, as well as 1,300 residences. Maple Lawn is home to a variety of businesses, including Cisco Systems, DataTribe, Johns Hopkins Medicine, KBR, Kennedy Krieger, New Day, Presidio, Raytheon and Window Nation.
DALLAS — Steward Health Care has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The Dallas-based company, which has disclosed $9 billion in total liabilities, plans to sell the entirety of its hospital portfolio, according to Reuters. The portfolio comprises 31 hospitals throughout the U.S. Steward hopes to complete all transactions by the end of this summer, with auctions scheduled for June 28 and July 30. In a press release, Steward attributes the decision to file for bankruptcy to “challenges created by insufficient reimbursement by government payors as a result of decreasing reimbursement rates while at the same time facing skyrocketing labor costs, increased material and operation costs due to inflation and the continued impacts of the COVID-19 pandemic.” Steward’s total debt includes $6.6 billion in long-term rent obligations, according to media reports. Medical Properties Trust, which owns the real estate occupied by Steward Health Care hospitals, has provided $75 million in debtor-in-possession financing to Steward, with the possibility of an additional $225 million loan as Steward’s bankruptcy process continues. Hospital leases with the landlord include terms until 2041. Steward hospitals occupy the properties on ground leases, with Medical Properties Trust owning the …
ORLAND PARK, ILL. — Orland Park Medical Pavilion, a two-story medical office building totaling 42,000 square feet, has opened in the southwest Chicago suburb of Orland Park. Located at 17047 S. LaGrange Road, the facility is anchored by Silver Cross and Premier Suburban Medical Group (PSMG). The property houses primary care physicians, advanced practice providers and a wide range of specialists for cardiology, endocrinology, gastroenterology, general surgery, hematology/oncology, orthopedics and rheumatology. Perry Higa of NAI Hiffman represented Silver Cross and PSMG by negotiating the land purchase and bringing in Remedy Medical Properties as the developer, Leopardo Construction as the general contractor, Jensen and Halstead as the architect and Kimley-Horn as civil engineer. Higa also negotiated the ground lease and long-term lease for both providers. The new facility houses comprehensive lab, imaging and pharmacy services; a 20-bay cancer care and infusion center; an endoscopy suite with two procedure rooms; and 38 exam rooms.
ST. LOUIS — Washington University School of Medicine has opened the new Jeffrey T. Fort Neuroscience Research Building, an 11-story academic building located at 4370 Duncan Ave. in St. Louis. The project represents an investment of $616 million, according to the general contractor, locally based McCarthy Building Cos. Inc. Considered one of the largest neuroscience research buildings in the world, the facility will help accelerate research in areas that include Alzheimer’s disease and brain tumors. The project team, including architectural firms CannonDesign and Perkins+Will, designed the facility to achieve LEED Gold certification. Situated on the eastern edge of campus, the 609,000-square-foot building accommodates 1,000 faculty and staff, including 95 research teams. Additional space could be built out in the future to accommodate another 350 faculty and staff, including about 145 research teams. The building includes an 1,846-space parking structure with bicycle racks and electric vehicle charging stations, as well as an elevated pedestrian connection that links the research building to an existing parking garage. The facility is named after Jeffrey Fort, a philanthropist and longtime donor to the university. The name was revealed at a ceremony held in January. McCarthy and the university broke ground on the research building in …
BEMIDJI, MINN. — Marcus & Millichap has brokered the $23.2 million sale of the Sanford Health Clinic Portfolio in Bemidji, a city in northern Minnesota. The two neighboring medical office buildings total 74,700 square feet. Seth Haron, Ashish Vakhariya and Darin Gross of Marcus & Millichap represented the seller and collaborated with Marcus & Millichap’s Sykes Cargile and Rob Lyons in representing the buyer. Jon Ruzicka of Marcus & Millichap assisted in closing the transaction. The properties sit adjacent to the Sanford Health Bemidji Medical Center and Sanford WoodsEdge senior living campus. Sanford Health is the largest rural health system in the U.S. and the primary employer in the Bemidji area.
CHICAGO AND LOS ANGELES — A joint venture between Remedy Medical Properties and Kayne Anderson Real Estate has acquired a portfolio of 37 healthcare properties from Broadstone Net Lease (NYSE: BNL), a diversified real estate investment trust with an industrial focus. The properties traded hands for $252 million. JLL served as the broker for the transaction. The 37 properties were selected from a larger collection of healthcare assets designated for sale by Broadstone Net Lease. The properties are being sold as part of the REIT’s plan to focus on core net lease assets in the industrial, retail and restaurant sectors. As of March 31, industrial properties comprised 54.2 percent of the REIT’s portfolio. The portfolio totals more than 708,000 square feet across 13 states. Each property is fully leased. The assets are situated in prominent markets that include: Chicago; Houston; Charlotte, North Carolina; Indianapolis; Seattle; Milwaukee; Tampa, Florida; and Arlington, Texas. The properties are leased by health systems and physician groups such as Advocate, Emerge Ortho, Froedert Health, IU Health, Tampa General, TGH Imaging and USPI. The largest facility included in the portfolio is Ridgeway Medical Campus in Greece, New York, near Rochester. The multi-specialty outpatient medical center comprises 120,000 …
NEW YORK CITY — Locally based firm Extell Development Co. has topped out a 30-story, 435,000-square-foot medical office project at 1520 First Ave. on Manhattan’s Upper East Side. Designed by Perkins Eastman Architects, the building will occupy a full city block between East 79th and East 80th streets and house ambulatory care and surgical facilities. Additional building features will include multiple outdoor terraces and mechanical systems to enhance comfort and energy efficiency, as well as ground-floor retail space. The Hospital for Special Surgery (HSS) has preleased eight floors totaling 195,580 square feet to serve as the facility’s anchor tenant. HSS will house orthopedic and rheumatology physician’s offices, as well as ancillary services for treatment of musculoskeletal conditions. Newmark has been tapped to lease the remainder of the space. Lendlease provided preconstruction management services for the project, full completion of which is slated for the second quarter of 2025.