JLL is pleased to offer for sale the fee simple interest in the Biomat USA Plasma Collection Center (the “Property”) located in the city of Chicago, Illinois. The Property is leased to Biomat USA (the “Tenant”), one of the world’s largest networks of plasma donation centers and wholly-owned subsidiary of multinational biotechnology manufacturer, Grifols, SA (S&P: BB; stable outlook). The Tenant is operating on a long-term net lease with ten years of primary lease term remaining, 10% rent escalations every five years, and minimal landlord responsibilities.
The Property is undergoing major renovations with over $3.8 million ($282 PSF) of capital investment to deliver in Q3 2022. Situated in Chicago’s Portage Park neighborhood eight miles northwest of Downtown Chicago and two blocks north of Community First Medical Center (299-bed hospital), this opportunity offers investors a premier medical office leased to an industry-leading healthcare operator in the heart of Chicago MSA.
ESSENTIAL HEALTHCARE OPERATOR SUPPORTED BY ITS GLOBAL BIOTECH PARENT
- Tenant operates one of the largest plasma collection networks of 296+ facilities throughout the U.S.
- Grifols operates 370+ plasma collection facilities worldwide, doubling its footprint since 2016, and plans to expand over 40% to 520+ locations by 2026.
- Grifols is proven to be recession-resistant, increasing revenues over 21% (4.9% CAGR) since 2017 to $5.9 billion in 2021.
- Grifols’ leading division, Bioscience (77% of H1 2021 revenues), relies heavily on the availability of plasma supply, which is procured solely by donors of its collection center network.
LEADING CHICAGO HEALTHCARE MARKET WITH OUTSTANDING DEMOGRAPHICS
- Positioned in a medical node steps to Community First Medical Center (299-bed) with excellent access to 960,000 residents earning nearly $100,000 average household income (five-mile radius).
- Third most populous U.S. metropolitan and largest Midwest healthcare market with $2.06 billion of medical capital expenditures in a five-mile radius.
- Adjacent to Central Avenue offering seamless access and traffic counts of over 23,800 VPD.
OPTIMAL LONG-TERM NET LEASE WITH MINIMAL LANDLORD EXPENSES
- Ten years of lease term, 10% rent escalations every five years, and minimal landlord responsibilities supported by new roof, HVAC, and parking lot upgrades.
- Highly replicable contract rent coupled with extensive 2022 upgrades totaling $3.8 million ($2.0 million by Tenant), accentuates the Tenant’s strong desire for the location.
- Three, 5-year renewal options, whose high likelihood of being exercised is enhanced by the Tenant’s significant interior build-out and aggressive expansion plans.