M
CB Real Estate, a subsidiary of MCB Science + Health, has recently purchased a medical office building in Naperville for $28 million. The iMed Naperville Medical Office building, located at 1331 West 75th Street, was sold to MCB Real Estate by DynaCom Management. The purchase price equates to $386 per square foot, according to Crain’s report.

    The four-story building spans an impressive 72,500 square feet and was developed by Naperville-based DynaCom, led by CEO Ali Setork, in 2015. The property is currently 96% leased, with Endeavor Health occupying nearly half of the space. Greenstone Partners’ Jason St. John, who brokered the sale, described the property as functioning like a "mini health campus."

    The acquisition reflects the strong demand for medical office buildings, particularly those with long-term tenants like Endeavor Health. While traditional offices struggle with the impact of remote work and pandemic aftermath, medical office properties offer more stability due to their requirement for in-person use and steady cash flow, making them attractive to investors.

    The healthcare sector's growth, driven by an aging population and the expansion of outpatient services, has drawn significant attention from investors. Many expect baby boomers' rising healthcare needs to continue fueling demand for such facilities. Major health systems are also shifting more services to outpatient settings like the iMed Naperville property.

    Endeavor Health's long-term lease was a key factor in MCB's decision to acquire the property. The company formed through the 2022 merger of NorthShore University HealthSystem and Edward-Elmhurst Health. Despite rising borrowing costs, MCB had no difficulty securing financing for the Naperville purchase. MCB also owns a medical office property in Baltimore and is developing another in suburban Philadelphia.

    Despite the slowdown in sales of medical office buildings nationwide, dropping from a record-high $19.1 billion in 2022 to just under $7.4 billion last year, according to Colliers, MCB's acquisition of the iMed Naperville property demonstrates continued interest in this sector.