A major Chicago health system has paid $58 million for a medical office building west of the city, making the shift from tenant to landlord in a move that reflects a broader national trend among hospital operators seeking greater control over outpatient real estate.
An affiliate of Northwestern Medicine last week bought the four-story, approximately 70,000-square-foot building at 1001 Commerce Drive in Oak Brook, Illinois, according to DuPage County property records.
The seller was a joint venture of medical property developers Harrison Street and MedProperties Group, which constructed the building that opened in January 2024.
The deal is the latest example of hospital systems acquiring properties they once leased, as providers increasingly seek to secure long-term control over high-demand outpatient space and capture more of the real estate economics tied to care delivery.
Last month, Advocate Health paid more than $23 million for a medical facility in nearby Naperville where it had been a tenant. The seller was a venture of HSG Medical and Capital Healthcare Properties that bought a vacant LA Fitness building and converted it for medical use, reflecting how developers are repurposing underused retail assets to meet healthcare demand.
Across the country, rising demand for outpatient care has pushed developers and investors to pursue both ground-up projects and conversions of vacant retail and other properties, particularly in suburban markets with strong demographics.
It’s unclear how much the Oak Brook building cost to develop.
Chicago-based Harrison Street and Hinsdale, Illinois-based MedProperties did not immediately respond to requests for comment from CoStar News. Northwestern Medicine also did not immediately respond.
The developers bought the site for $4.2 million in June 2021 and took out an approximately $36.9 million loan from Lake Forest Bank & Trust that December, according to county records.