MLL Capital has started building a $500 million portfolio of institutional assets in the medical office, laboratory and life sciences sector. The investment firm recently purchased the Ravenswood Professional Building — a medical office building in the Ravenswood neighborhood on the north side of Chicago — for $13.85 million.
The Boston-based commercial real estate investment firm plans to rebrand the building as the Ravenswood Medical Center. Current tenants of the 63,000-square-foot property include Advocate Children’s Medical Group, part of Advocate Healthcare, Illinois’ largest health system, as well as CAM Medical Group and HearUSA.
Built in 1972 as part of the former Ravenswood Hospital, the seven-story building features an on-site parking garage and is within blocks of the CTA Brown line at Damen and the Metra commuter rail’s Union Pacific North line at Ravenswood.
The acquisition follows MLL Capital’s December 2019 purchase of a four-property portfolio, which added more than 250,000 square feet of medical office space to the company’s national footprint. Those properties are located in the Chicago, Minneapolis, Nashville and Washington, D.C. markets. That deal included more than 95,000 square feet of medical office space at Advocate Sherman Hospital in Elgin, Ill.; 37,000 square feet at Sterling Medical Office Building in Sterling, Va.; and 60,000 square feet at High Pointe Health Campus in Lake Elmo, Minn., among others.
While all real estate sectors have been deeply affected by COVID-19, the pandemic has shined an even brighter light on the importance of healthcare and medical space. As such, the future of healthcare and life science facilities has a very promising value-add outlook. These sectors are also quite resilient, making them attractive investment opportunities.