A medical office property in Naperville sold last week for $6 million after its owner retired.
McBonds Millar LLC sold the 55,000-square-foot building at 1952 McDowell Road to Babar Raza.
The sale closed Aug. 21, and no upgrades are planned.
The building is 86% occupied. Advanced Behavioral Health Services anchors the property, occupying 33%, and recently extended its lease through 2029, according to Arjav Patel with Greenstone Partners, who represented the seller on the deal along with colleague Jason St. John.
“Demand for medical assets remains very strong with quality offerings routinely commanding multiple bids,” said St. John. “Given the scarcity of supply, well-located suburban properties are highly sought after.”
Patel said the buyer wanted the property because it offered strong cash flow and great solid tenancy, and is located near I-88.
Greenstone Partners closed 18 property sales in Naperville in the past 48 months including a 53% occupied medical office building auctioned at $6.4 million, added Patel.
“Many existing owners carry low interest rate debt and acquired their properties at cap rates below today’s market, making them less motivated or pressured to sell,” said Patel. “Also, in many cases, there are not great alternative investments that produce similar cash flow.”
Naperville is also located in DuPage County where taxes are lower than in Cook County and where this year there has been an uptick in retail, medical office, industrial and flex-industrial property sales, according to Patel.
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