University of Illinois Hospital and Health Sciences Chicago, Illinois

Surgery Center & Specialty Clinic – University of Illinois Chicago

Project Summary

A new approximately 200,000 square foot, six-story Surgery Center and Specialty Clinic and related amenities and improvements, located on property owned by the University of Illinois in Chicago, exclusively for the benefit and support of the University and its Hospital and Health Services Facilities System.

Cost
$149,845,000
Size
200,000 Square Feet
Role
Owner / Borrower / Co-Developer
Development Team
Ankura Consulting Group
Project Site
Affiliate
University
EMMA Link
EMMA

Overview

A new approximately 200,000 square foot, six-story Surgery Center and Specialty Clinic and related amenities and improvements, located on property owned by the University of Illinois in Chicago, exclusively for the benefit and support of the University and its Hospital and Health Services Facilities System.

Provident Group – UIC Surgery Center LLC (“Provident SPE”), a newly formed special purpose entity entered a long-term ground sublease with the University of University of Illinois for a site located on its Chicago medical campus.

The Project will provide a new home for outpatient surgery procedures now performed within the operating suite at the University of Illinois Hospital’s 462-bed tertiary care hospital, allowing space within the Hospital Building to be improved and used for the expansion of the existing inpatient surgery department. The building will house outpatient surgery, urology, otolaryngology, ophthalmology, gastroenterology clinics, imaging services and a pharmacy.

Financing

The project was financed through the issuance of $149,845,000 in tax-exempt lease revenue bonds by the Illinois Finance Authority (“IFA”). The bonds are secured by a Leasehold Mortgage and other security agreements on the project and are to be paid from lease payments made by the Hospital pursuant to the long-term Sublease Agreement. Lease payments are payable from and secured by the Surplus Revenues of the Hospital.  The obligation to pay base rent is an independent covenant, and an unconditional obligation of the Hospital. The bonds are rated “BBB+” by S&P.  Mesirow Financial, Inc. served as the lead underwriter of the bonds, with Cabrera Capital serving as co-manager.

Development & Management

Ankura Consulting Group served as developer of the Project. Construction is being undertaken through a joint venture of Pepper Construction and Brown & Momen, with Shive-Hattery serving as architect.