NAPERVILLE, IL. (May 11, 2016) — With ultimate plans to develop a hospital system-based medical office building complex, Ryan Companies US, Inc. has completed the acquisition of a 9.5-acre land site within the Cantera Business Park, north of I-88, in West suburban Warrenville, Illinois. When complete, the development is likely to have a construction volume exceeding $15 million.
With the acquisition, Ryan Companies is looking to leverage continued healthcare system expansion in the Western suburbs with a convenient, well-located land position. The acquisition is also significant because it now gives Ryan two prominent office/medical office development positions in the Western suburbs, along I-88, including an Oak Brook parcel acquired in February.
According to Jim McDonald, Vice President of Development, Ryan Companies, the Cantera land parcel is strategically situated where Ferry Road, Mill Street and Warrenville Road intersect. The surrounding area offers a significant concentration of hospitals and healthcare systems’ outpatient facilities, and is “in the path of progress and further expansion” of systems that serve the Western suburbs.
The 80,000-square-foot complex envisioned by Ryan Companies would include two office buildings, each two stories and totaling approximately 40,000 square feet of space, with shared amenities and common space linking the two. Parking for the complex is expected to be above standard, at 5 to 6 cars per 1,000 square feet of leased space.
Healthcare systems located within a 15-mile radius of the site include Elmhurst-Edward Hospitals, Northwestern Medical Center’s (NWMC) Central DuPage Hospital, NWMC’s Marianjoy Rehabilitation Hospital and Advocate Good Samaritan Hospital. These systems, and other healthcare providers, have made significant commitments to the area with service and facility expansions that have included Northwestern Medicine’s Cancer Center and Orthopedic Surgical Center and Edward Hospital Sleep Center.
“As healthcare organizations seek to expand their locations into the communities they serve and offer more services outside of a hospital setting, the critical element remains the location and accessibility of sites available for development,” McDonald said. “This site, which has all of the required characteristics and demographics, will provide a portal for a healthcare system to further expand its reach.”
David Justh, an Executive Vice President with CBRE, represented the seller, a private investor, and is working with Ryan Companies to market the development to healthcare systems and related users.
Justh said this development, and the overall area, is a proven destination for uses that could include ambulatory surgical centers, proton therapy facilities, sleep centers, orthopedic clinics, women’s health centers and health administration offices. He noted that the 650-acre Cantera Business Park is also home to a roster of attractive amenities that include hotels, restaurants, retail, entertainment and recreation.
The acquisition of the Cantera Point land site further demonstrates Ryan’s bullishness on the Chicago suburban marketplace and follows the company’s announcement in February of plans for a signature urban-suburban office/medical office development on 11 acres in Oak Brook, Illinois, with frontage along the I-88/I-294 interchange and the western side of York Road.
“We are optimistic and bullish about suburban Chicago,” Tim Hennelly, President of Ryan’s Great Lakes region, said. “Companies are seeking modern, well-designed, prominently-located suburban office facilities, particularly along I-88. This is true of traditional corporate office users as well as healthcare systems and related users.”
“Over the years and across the country, Ryan has established a great reputation for developing premier medical office and conventional office buildings,” Hennelly said. “We’ve demonstrated that before in suburban Chicago with the delivery of Class A office buildings in Naperville and Rosemont. We feel the I-88 corridor is at a supply-demand tipping point and the supply is not there for the modern office environment that tenants are demanding. That type of office product is available now in the City but not in the suburbs. We hope to fill that void.”
The recent land acquisitions continue Ryan’s strategic approach to be a leader in delivering complex, signature developments in proven markets and asset classes throughout the Chicago metropolitan area. The company has taken that approach in breaking ground on 833 North Clark Street Apartments in Chicago’s Gold Coast last summer and developing three Clarendale senior living communities in the suburbs during 2015.
In addition to owning the fully-improved Cantera Point property, Ryan also will provide development, design-build and real estate management services. CBRE will serve as broker. Ryan A+E, Inc., is providing architecture services.
For leasing information about this proposed commercial office/medical redevelopment in Warrenville, Illinois, please contact David Justh at CBRE at (630) 573-1273 or david.justh@cbre.com.
About Ryan Companies US, Inc.
Ryan Companies US, Inc. is a 3rd generation, family-owned national developer, designer, capital investment consultant, builder and real estate manager specializing in fully integrated solutions for over 75 years. Key market sectors include: retailers, industrial, healthcare, senior living, and corporate build-to-suit; and product experience includes work on office, retail, mixed use, hospitality, multi-housing, industrial, medical office building, senior living, distribution center, public sector, and mission critical facilities. Ryan serves customers throughout the United States with offices in the North, Midwest, Great Lakes, SouthEast, SouthCentral, SouthWest and West regions. Ryan was named the 2007 National Developer of the Year by NAIOP, the Commercial Real Estate Development Association. For more information, visit www.ryancompanies.com.
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