17901 Governors Hwy
Homewood, IL 60430
Governor's Medical Center · Office Property For Sale

INVESTMENT HIGHLIGHTS ONE-STOP-SHOP HEALTHCARE The Property offers patients easy access to a wide variety of healthcare services such as family medicine, dental, gastroenterology, OB-GYN, urology, podiatry, internal medicine, and oncology. TREMENDOUS RETURNS The Investment offers a going-in 9.53% cap rate and a 14%+ cash-on-cash return, assuming a 65% loan-to-value, 5.00% interest rate, and 25-year amortization schedule. WELL LOCATED + EASILY ACCESSIBLE The Property is positioned less than 2-miles east of the 289-bed Advocate South Suburban Hospital, 1.5-miles from the Homewood Metra station, and less than 3-miles from the Interstate I-80 and I-294 interchange, which sees traffic counts of nearly 175,000 vehicles per day. WAVE OF BABY BOOMERS The medical office market has surged in recent years as rapid growth of baby boomers has become a dominant driver for medical office demand in the years to come. The population aged 65 and above is expected to increase by 1.7 million in 2018 alone and by 9.2 million over the next five years, driving strong demand for healthcare services. EMPLOYMENT GROWTH & SPACE ABSORPTION Healthcare employment has grown by an astonishing 47% since 2000, compared with 12% for total national employment, and has well-weathered the past two recessions. In addition, medical office net absorption has outpaced new supply in 24 of the past 29 quarters. UPSIDE THROUGH COLLECTING REIMBURSEMENTS There is an opportunity to increase returns by collecting additional revenue through reimbursements from 14 of the 15 tenants as they’re under ‘modified-gross’ lease structures with base years. The existing base years safeguard against the landlord’s expense growth and also protect an investor’s cashflow from potential increases in real estate taxes.