Global Investment House "Global" announced Saturday the conclusion of its first Medical Office Building acquisition in the United States, the second acquisition of its US Real Estate Fund investment scheme.
Mr. Sameer A. Al-Gharaballi, Executive Vice President at Global said that the company is continuously going through researches and studies for all acquisition opportunities in the United States, which has resulted in this investment.
He added that the property is Northwest Medical Arts Building, located in Arlington Heights, Illinois. The total value of the investment is $10.28 million, and the fund's share is equivalent to $3.48 million.
Built in 1974, the property is located at 1100 Central Road in Arlington Heights, Illinois, a heavily traveled east-west thoroughfare in the northwest suburbs. The property is situated on a three-acre rectangular land parcel adjacent to Northwest Community Hospital. It is a four-story concrete and steel constructed building with 62,426 net rentable square feet.
In addition, approximately 98% of it is leased to 24 tenants. The building also includes 247 surface parking spaces, equating to a ratio of approximately four spaces per 1,000 square feet of rentable area. The property’s in-place rental rate currently stands at $22.70 per square foot.
In March 2005, the seller completed a $1.7 million renovation of the property, bordered to the north by tracks of single-family town homes, a corporate office park on the south side, and to the west by a sunrise-operated senior living community.
The property is also less than two miles from Interstate 290 (Northwest Toll way), which provides easy access to O’Hare International Airport and downtown Chicago. 1100 Central Avenue is located adjacent to the Northwest Community Hospital, the metro area’s ninth largest hospital in terms of licensed beds.
The hospital is highly regarded for its clinical excellence and has received numerous national awards, such as being ranked number one in Illinois for heart care in 2004 by Health Grades, a leading independent source of healthcare data. It also has centers of excellence in oncology and orthopedics, two other highly profitable practice lines, and has the busiest emergency room in the northwest suburbs. It is a facility identified by Solucient, a well-regarded healthcare information management firm, as one of top 100 hundred hospitals in the nation.
It's worth mentioning that the major tenants of the building are NorthWest Surgicare, Altman Dermatology, Suburban Associates Ophthalmology, Midwest Retina Consultants, Accucare and others.
Mr. Al-Gharaballi pointed out that the average yearly cash on cash income on the acquisition is approximately 7.8%, distributed monthly, and with this new acquisition the fund has invested approximately 80% of the investors’ initial commitments received till date.
© 2005 Al Bawaba (www.albawaba.com)
