CHICAGO, November 15, 2023 – Joint venture partners Remedy Medical Properties and Kayne Anderson Real Estate announced the acquisition of the 93,386-square-foot, LEED Gold-certified RUSH Oak Brook Medical Center in the Chicago suburb of Oak Brook.
The three-story medical office building and ambulatory surgery center (ASC), located at 2011 York Road, sits on 3.516 acres and is 99% long-term leased by RUSH University System for Health, one of the top health systems in the U.S., and Midwest Orthopaedics at RUSH, a division of OrthoMidwest and the top-ranked orthopedic and spine practice in Illinois.
Completed in 2018, RUSH Oak Brook is an orthopedic center of excellence, and also serves as an outpatient healthcare hub for more than 20 other clinical specialties in Chicago’s affluent western suburbs. Services include physical therapy and rehabilitation; neurosurgery; ear, nose and throat; OB/GYN; dermatology; pain management; gastroenterology; and primary care, among others.
The building features a high-volume, Certificate of Need (CON) protected, multi-specialty surgery center featuring six operating rooms, two procedure rooms and 28 patient bays. The facility also boasts more than 65 exam rooms, outpatient surgical suites, an advanced imaging center, and in-house lab services.
The facility was built to suit in 2018, and features a modern metal and glass curtain wall design, with a covered patient drop-off area and attractive landscaping. Interior details include a two-story atrium main lobby with a dark wood feature wall, ornamental LED lighting and a seating lounge. Architect CannonDesign utilized a “universal grid” modular design strategy to maximize the medical offices for adaptability and long-term value. An attached parking structure offers 492 free valet or self-park spaces and offers direct building access on each floor.
“As a Chicago-based company, we are thrilled to acquire this trophy building in our home market,” says Joe Magliochetti, chief investment officer for Remedy. “The RUSH Oak Brook Medical Center increases our portfolio in the Chicago market to 2.55 million square feet. In addition, Remedy has an existing relationship with OrthoMidwest, and this was a great opportunity to expand our relationship with one of the best orthopedic groups in the country, as well as one of the leading academic medical centers in RUSH.”
“RUSH developed this state-of-the-art property to be their multi-specialty hub in Chicago’s west suburbs, as its two acute care hospitals are located further east in Chicago and Oak Park. Surgery center procedure volumes at Oak Brook have outpaced RUSH’s original expectations, and outpatient orthopedic surgical volume is expected to increase sharply over the next decade,” says Antonio Minchella, senior managing director, medical office, for Kayne Anderson Real Estate. “The Certificate of Need creates a high barrier to entry for competitors and further ensures the long-term profitability of this facility.”
RUSH Oak Brook is ideally located, with convenient access to several of Chicagoland’s primary thoroughfares, including the Tri-State Tollway, I-88, Illinois Route 83 and Roosevelt Road. Approximately 6 million people live within a 30-minute drive, and the average household income within a 1-mile radius of the facility is $187,151, which is 1.5 times the national average. The surrounding community boasts a wealth of amenities, including the Oakbrook Center mall, numerous restaurants and five golf courses. The facility is within 10 miles of eight major hospitals, including Elmhurst Memorial Hospital, Loyola University Medical Center and Advocate Good Samaritan Hospital.
About Kayne Anderson Real Estate
Kayne Anderson Real Estate is a leading real estate investment firm, managing over $14.5 billion in assets under management across opportunistic equity, core equity, and real estate debt, with sector expertise in medical office, seniors housing, off-campus student housing, multifamily housing, and self-storage. Kayne Anderson Real Estate is part of Kayne Anderson a $33 billion alternative investment management firm with more than 39 years of successful experience in the real estate, renewable and energy infrastructure, energy, credit, and growth capital sectors.
About Remedy Medical Properties
Remedy Medical Properties is a full-service healthcare real estate company and the largest private owner of healthcare properties in the country, with over 33 million square feet and 25 offices spanning 44 states. Remedy offers healthcare providers unmatched flexibility in every client engagement, and our adaptability enables us to provide more options in ownership, development, leasing, management, and strategy to healthcare providers. Our willingness to commit capital, share more risk, and offer greater foresight results in greater resilience, profitability, and peace of mind for our clients.
