Cadence seeks to buy out partner in Delnor office building
GENEVA – The parent organization of Delnor Hospital is again seeking to buy out a business partner, this time asking state regulators’ permission to purchase the majority ownership stake held by a developer in a medical office building located on Delnor’s Geneva campus.
Earlier this month, Cadence Health, which was formed in 2011 as a result of the merger of Central DuPage Hospital in Winfield with Delnor, filed a request with the Illinois Health Facilities and Services Review Board to buy out the ownership stake in its medical building at 351 Delnor Drive, held by HC Geneva Partners I LLC, a corporate entity affiliated with Brookfield, Wis.-based Hammes Co.
Hammes partnered with Delnor to construct the building almost a decade ago and now holds an 80 percent ownership stake in the building.
The 81,000-square-foot building is leased to various tenants, with Delnor leasing about 42 percent of the available space, according to documents included with Cadence’s state filing.
About 84 percent of the building’s available space is leased, according to the filed documents.
Cadence would pay about $23 million to buy out Hammes, including the assumption of about $14 million in debt related to the building, according to the filing. Cadence would pay about $8.25 million in cash
and an additional $420,000 in fees.
According to the state Health Facilities Board website, the public has until July 30 to request a public hearing on the matter and has until Sept. 4 to submit written comment on the project to the state board.
The filing does not include an explanation for Cadence’s desire to purchase, or for Hammes’ desire to sell.
Cadence’s request marks the second time in a month that the Winfield-based health care organization has asked the state for permission to buy out a business partner.
In late June, Cadence filed a request to pay $25 million to buy out New York-based ProCure and assume control of the CDH Proton Center in Warrenville.
In that filing, Cadence pointed to ProCure’s “financial restructuring” as justification for that buyout.