I
RA Capital has acquired a five-story medical facility in the South Loop from an affiliate of Ares Management. The California-based investor paid $21.8 million, or $525 per square foot, for the 41,500-square-foot outpatient center at 1411 South Michigan Avenue, which is leased to Rush University Medical Center. This acquisition aligns with IRA Capital's strategy of investing in essential medical facilities occupied by leading health systems.

    The property was previously owned by Russland Capital Group, which defaulted on a $76.3 million mortgage and subsequently lost control after a foreclosure suit. Ares Commercial Real Estate Management subdivided the property, selling only the medical office while retaining ownership of an adjacent apartment tower.

    IRA Capital has invested over $600 million in healthcare real estate this year alone, with a portfolio that includes the Hawthorn Surgery Center in Vernon Hills. Despite high interest rates deterring some investors, IRA Capital saw a good opportunity in the South Loop facility. Nationally, medical office building sales decreased to $7.4 billion last year, down from a record-high of $19.1 billion in 2022. However, there is still interest in healthcare-related real estate, as seen in MCB Science + Health's purchase of a Naperville medical office building for $28 million in September.