Belay Investment Group and Echo Real Estate Capital Form Programmatic JV, Acquire 132,805-SF Medical Office Complex in Munster, Indiana

Belay Investment Group and Echo Real Estate Capital, Inc. have formed a programmatic joint venture focused on value-add medical office investments in targeted U.S. regions, the firms announced Sept. 10. The partnership's inaugural acquisition — the 132,805-square-foot, three-building Northwest Indiana Medical Complex at 9100–9200 Calumet Avenue in Munster, Indiana — closed in August, with debt financing provided by Wintrust Bank.

Deal Structure and Partnership Rationale

The joint venture pairs Echo Real Estate Capital, Inc.'s healthcare real estate expertise and local operator relationships with Belay Investment Group's institutional capital platform and programmatic partnership model. Belay's broader investment approach centers on providing scalable access to small-scale real estate through programmatic joint ventures with specialized, locally entrenched operators across risk profiles, property types, and geographies — encompassing both debt and equity strategies.

"This new partnership combines Echo's extensive experience in healthcare real estate with Belay's access to institutional capital and processes. Together, we are targeting to achieve rapid scale and drive performance at our properties," said Jon Boyajian, Founder and Principal of Echo Real Estate Capital. "We are very excited to partner with a group like Belay who shares our entrepreneurial spirit and pragmatic approach to value creation."

Eliza Bailey, Co-Founder, CEO and CIO of Belay Investment Group, said the Northwest Indiana Medical Complex represents an ideal seed asset for the new venture given its location adjacent to a dominant healthcare system, its attractive basis, and its value creation potential. "Belay is eager to work with the Echo team in implementing our business plan, and excited to grow the partnership through future investments in the medical office sector," Bailey said.

Northwest Indiana Medical Complex: Property and Tenancy

The Northwest Indiana Medical Complex comprises three buildings totaling 132,805 square feet on Calumet Avenue in Munster, Indiana. The multi-tenant property houses a mix of health systems, specialty practices, and ambulatory surgery centers. Notable tenants include Powers Health, Rush University Medical Center, Dermio Dermatology, and DaVita, Inc. Several surgery centers also occupy the complex, including The Center for Minimally Invasive Surgery, Munster Specialty Surgical Center, Plum Creek Surgery Center, LLC, and South Suburban Surgical Suites.

The acquisition marks Echo Real Estate Capital's ninth investment in Indiana since 2018.

Value-Add Business Plan

Echo Real Estate Capital's Director of Acquisitions, Kyle Gordon, described the asset-level strategy as hands-on from the outset. "Cosmetic lobby upgrades, deferred maintenance, and a proactive lease up of existing vacancy, done in true partnership with our tenants. We have run this playbook successfully before, and once we close, we get right to work," Gordon said.

The approach reflects a light-to-moderate value-add profile: physical and operational repositioning rather than ground-up redevelopment. Echo intends to address deferred maintenance, upgrade common areas, and actively lease vacant space in close coordination with existing tenants.

Medical Office Market Context

The joint venture is entering a medical office sector that has demonstrated relative stability compared with traditional office. Medical outpatient building cap rates averaged approximately 7.1% in the second quarter of 2026, up only four basis points year-over-year, reflecting steady pricing despite broader commercial real estate volatility. The sector recorded 1.18 million square feet of net absorption in the second quarter of 2026, marking the fifth consecutive quarter of positive demand.

Nationally, medical office building vacancy has held in the high single digits — roughly 7% to 9% — compared with mid-teens vacancy rates for conventional office. Occupancy across the top 100 U.S. metros reached approximately 92.7% in the second quarter of 2025, a cyclical high driven by limited new construction and growing outpatient demand. Average asking rents on a triple-net basis were approximately $25.35 per square foot across those markets. Medical office buildings have traded at roughly $310 per square foot on average nationally, a sustained premium over traditional office assets.

Higher construction costs have constrained new medical office development in recent years, supporting occupancy and rent levels at existing properties — a dynamic that benefits value-add lease-up strategies. Cap rates in the sector rose from sub-6% levels during the low-rate environment to approximately 7% or above before showing signs of modest re-compression into 2026.

About the Firms

Echo Real Estate Capital, Inc. is a Chicago-based acquisition and development firm with a primary focus on healthcare, industrial, and retail assets, as well as nationwide programmatic build-to-suit development.

Belay Investment Group is an institutional real estate investment management firm that pursues investment opportunities across the risk spectrum, property types, and geographies through programmatic partnerships with specialized operators.

Sources

Belay Investment Group — Echo Real Estate Capital, Inc. and Belay Investment Group, LLC Form Programmatic Joint Venture (Sept. 10, 2026)