Global Investment House "Global" has announced the conclusion of the fifth real estate acquisition in the United States, as part of its US Real Estate Fund’s management strategy and as a continuation of its investments.
Mr. Sameer A. Al-Gharaballi, Executive Vice President at Global - the fund’s manager- said that it finalized the purchase of the fifth Medical Office and the McNeal Medical Office, to become the fifth asset in its portfolio.
He added, “The property consists of three separate buildings totaling 95,869 square feet located in Berwyn, Illinois. The total value of the investment is $ 22.83 million” he added.
Mr. Al-Gharaballi pointed that the average yearly cash on cash income on the acquisition is approximately 6.1%, although the cash income for the first year is 5.2%, distributed monthly.
He stressed that Global relentlessly investigates and analyze all acquisition opportunities throughout the United States, which has lead to the conclusion of this deal.
The portfolio is located between the 3300 South and 3400 South blocks of Oak Park Avenue in Berwyn, Illinois. McNeal Hospital is located directly across Oak Park Avenue, located just a short distance from both interstate 55 and interstate 290 with easy access to downtown Chicago.
The portfolio is also less than two blocks away from the Metra train stop located in downtown Berwyn, providing access to downtown Chicago, as well as the west suburbs. Berwyn is a southwest “inner ring” suburb of Chicago.
Furthermore, the portfolio currently has a 100% occupancy with single tenant who is Vanguard Health Systems being the sole tenant running through February 2021 and all leases have annual increases.
The first building contains 42,779 square feet of medical office space and it was built in 1965 but was improved and expanded in 2004 by current tenant in which they spent $3.5 million to renovate and expand the first floor creating space for a new Linear Accelerator. The second building was built in 1947 and contains 5,990 square feet which is being initializing by the tenant to house several administrative offices.
The third building is the largest of the three buildings, which was constructed in 1940 as a bank, containing 47,100 square feet of space. The tenant uses the space as administrative offices for the Hospital.
Mr. Al-Gharaballi stated that the fund has invested approximately 72% of the investors’ total commitments which were received to date. In addition, the fund is conducting the due diligence process for other three more deals in Medical office sector in the United States which will invest the remaining capital fully if it meets the fund’s criteria.
