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CHICAGO-Northwestern Memorial Hospital will move into about 100,000 sf later this year at the Time-Life building, 541 N. Fairbanks Court. The hospital will move into another 50,000 sf late next year.

“It is one of the larger leases done in Chicago, and specifically in the North Michigan Avenue submarket,” says John Ferguson, senior vice president with Golub & Co., which purchased the building in a joint venture with Wachovia Securities in June 2006. Ferguson, along with leasing directors Debbie Nicholson and Peter Merrion, represented Golub in the lease transaction. Greg Gerber and Sarah Cogswell, with the John Buck Co., represented the hospital in the transaction.

The hospital will be moving its financial departments and administrative functions from space at 676 N. St. Clair, which is owned by the hospital. Northwestern was attracted to the building because of the proximity to the hospital, 251 E. Huron, and the hospital campus, Fergus says. The building also has amenities such as retail shops, a restaurant, a conference room, fiber optic infrastructure and views of the city and lake.

The term of the lease is 10 years, he says. Ferguson said he could not disclose the lease rate or aggregate value of the lease but says the asking lease rate for the building is between $11 per sf and $14 per sf. Ferguson also would not disclose any lease incentives. “It was a competitive situation but I think the hospital recognized the quality of the building, the proximity to its current hospital campus and the fact that it does have very good floor plates that work well for what the hospital is trying to accomplish,” he says.

The hospital will occupy seven floors of the 30-story building. The building, which was completed in 1968, is between 97% and 98% occupied with the hospital lease, Fergus says. Other major tenants include Time Inc., the Chicago Park District, International Survey Research and Health Directions.

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