Longtime Chicago developer John McClinden has jumped into medical offices to back a startup focused on an asset class that has been displacing retail tenants as they disappear from brick-and-mortar storefronts.
McLinden and Kage Brown, partners at local developer Hubbard Street Group, launched a new venture called HSG Medical to invest in Capital Healthcare Properties as demand for doctors’ offices and clinics grows in Chicago, CoStar News Report.
Daniel Ahlering, Jack Sullivan and Jay Heald recently founded Capital Healthcare with plans to acquire and develop properties for various medical uses in the Chicago area, as well as in Arizona and Ohio. It will be based at the Hubbard Street Group’s River North offices.
HSG will invest in the Capital Healthcare transaction while providing guidance and assistance with administrative and accounting tasks.
The venture comes even as rising interest rates, tighter lending conditions and fears of a recession have slowed commercial real estate growth across the city.
“It certainly wasn’t the easiest time to start this work,” Hield told the outlet. “There’s a lot of uncertainty, but this creates an opportunity to find valuable long-term opportunities, whether it’s land or value addition and conversion.”
While Chicago’s retail and traditional office sectors struggle, Influx of new medical and research facilitiesThe metropolitan area’s medical office market has grown nearly 18 percent over the past decade, adding more than 4.3 million square feet of space since 2012, outpacing the national growth rate of 12 percent.
Other ongoing medical office projects include John Novak’s $70 million facility Westside’s Rush University, MetLife under consideration transform space For medical use at Water Tower Place.
Formerly colleagues at MedProperties, Capital Healthcare’s three founders have worked on projects such as the development of a 180,000-square-foot project for Northwestern Medicine in Oak Brook Commons, a 71,000-square-foot project for Northwestern Community Hospital in Buffalo Grove. There is also a 60,000-square-foot project in Gilbert, Arizona, the media said.
— Quinn Donoghue
