JUNE 21, 2019|JESSICA BURROW
National Health Care REIT Drops $40 Million on Downtown Chicago Medical-Office BuildingHealthcare Trust of America Acquires Streeterville CenterStreeterville Center in Chicago. Photo: CoStar
Healthcare Trust of America, the largest real estate investment trust in the United States by ownership of medical office buildings, expanded its holdings with the purchase of the Streeterville Center medical office building in Chicago for $40 million.
Completed in 1968, Streeterville Center is composed of 82,185 square feet of medical office space and 161 residential units located just off the Magnificent Mile at 233 E. Erie St. Only the first eight floors of the building were included in the sale. The building features a 24-hour doorman, secured indoor valet parking, conferencing facilities, and an in-house construction team. A full renovation to the non-residential floors was reportedly completed in 1998.
Healthcare Trust of America, of Scottsdale, Arizona, purchased the property off-market in an all-cash transaction.
According to a party familiar with the deal, the Streeterville Center traded at a 5.5% cap rate, or rate of return, which yields an annual stabilized net operating income of $2.2 million. This is due in large part to the building being 98% occupied at closing.