MCB Buys $28M Medical Office From DynaCom Management

A Chicago-based firm specializing in healthcare real estate has acquired a medical office building in Naperville for $28 million.

MCB Science + Health, a subsidiary of MCB Real Estate, purchased the iMed Naperville Medical Office building at 1331 West 75th Street from DynaCom Management for $386 per square foot, Crain’s reported.

Naperville-based DynaCom, led by CEO Ali Setork, developed the 72,500-square-foot property in 2015.

The four-story building is 96 percent leased with Endeavor Health occupying nearly half the property, which functions like a “mini health campus,” according to Greenstone Partners’ Jason St. John, who brokered the sale. The deal reflects the strong demand for medical office buildings, especially those with long-term tenants.

While traditional offices struggle with the impact of remote work and the aftermath of the pandemic, medical office properties have offered more stability. They require in-person use and generate steady cash flow, making them attractive to investors.

The healthcare sector, driven by an aging population and the growth of outpatient services, has drawn attention from investors. Many expect baby boomers’ rising healthcare needs to continue fueling demand for such facilities. Major health systems are also shifting more services to outpatient settings like the iMed Naperville property.

Endeavor Health’s long-term lease was a key factor in the acquisition, MCB CEO Will Germain said. Endeavor formed through the 2022 merger of NorthShore University HealthSystem and Edward-Elmhurst Health.

Sales of medical office buildings have seen a slowdown nationwide, dropping from a record-high $19.1 billion in 2022 to just under $7.4 billion last year, according to Colliers.

Despite rising borrowing costs, Germain said MCB had no difficulty securing financing for the Naperville purchase. MCB also owns a medical office property in Baltimore and is developing another in suburban Philadelphia.

— Andrew Terrell