“Building Within a Building” will Deliver Unparalleled Patient Experience; HEARN Selects Cushman & Wakefield to Market “Mag Mile Medical Pavilion,” to Healthcare Tenants
CHICAGO, February 23, 2022 – The Hearn Company will convert four office floors at 875 North Michigan Avenue to accommodate clinical and surgical uses creating the Mag Mile Medical Pavilion, a Class A medical office opportunity. HEARN has selected Cushman & Wakefield to lease the “building-within-a-building” in the iconic, mixed-use tower overlooking Lake Michigan and the city’s Magnificent Mile.
HEARN plans to invest more than $10 million into converting, initially, floors 28-30 and 33, totaling 130,000 square feet, into a medical office building (MOB) within the 100-story landmark. The Mag Mile Medical Pavilion will have a dedicated valet entrance with patient drop-off and pick-up on the north side of the structure, along with a dedicated elevator bank. Secured heated parking with private elevator access to the medical floors will be available as well. For the new project, HEARN has selected Cushman & Wakefield’s Healthcare Advisory Practice to market the property to prospective tenants, with the leasing team consisting of Karoline Eigel, Matt Sullivan, Lindsey Groom and Jack Seher.
Upon completion, which is slated for Q2 2022, the Mag Mile Medical Pavilion will offer the only Class A healthcare opportunity in a submarket where medical office vacancy is approximately 5%. Additionally, it is immediately adjacent to the Northwestern and Streeterville Healthcare Campuses, a 13.1 million-square-foot medical cluster that is 98.3% occupied and home to Lurie Children’s Hospital, Prentice Women’s Hospital, Northwestern Memorial Hospital, Feinberg School of Medicine, Shirley Ryan AbilityLab and numerous specialty practice groups.
Within a five-mile radius, the population of nearly 750,000 has an average annual income of $133,369, an overall annual healthcare spend of nearly $2.9 billion and a 70% commercial payer mix for healthcare insurance reimbursements.
“We will provide a truly unparalleled patient experience in a market with high tenant demand and demographics that are among the best in the world,” said Stephen G. Hearn, President and CEO of HEARN. “Though 875 North Michigan Avenue is an iconic structure, we’re always looking for ways to innovate and add value, both to the property and our surrounding community. With the Mag Mile Medical Pavilion, we can successfully do both and address the needs of a rapidly growing healthcare sector.”