CHICAGO—Ryan Cos. US, Inc. recently completed the acquisition of a 9.5-acre land site within the Cantera Business Park, north of I-88, in west suburban Warrenville, with ultimate plans to develop a medical office building complex for a hospital-based system. When complete, Ryan officials say the development will likely have a construction volume exceeding $15 million.

Recent changes to federal law require care givers to cut costs, and many have opted to spread outpatient facilities out into the areas they serve so patients can access care without visiting a hospital. Ryan now has two prominent office/medical office development positions in the western suburbs along I-88, including an Oak Brook parcel it acquired in February.

According to Jim McDonald, vice president of development, the Cantera land parcel is strategically situated where Ferry Rd., Mill St. and Warrenville Rd. intersect. The surrounding area has both a dense population and a significant concentration of hospitals and healthcare systems' outpatient facilities.

“This is an opportunity for a large healthcare system to plant their flag in this area,” McDonald tells GlobeSt.com. He is certainly not worried about finding a tenant, and expects one to occupy all or most of the complex. “Healthcare systems recognize that there is a gap in the market and we are responding to interest expressed by a couple of different groups.”

One of the unique features of this site is that it is development-ready and has already been approved, he adds. “We can break ground as early as this fall, or Spring 2017 at the latest.”

Ryan Cos. envisions an 80,000-square-foot complex that includes two office buildings, each two stories and totaling about 40,000 square feet of space, with shared amenities and common space linking the two. McDonald adds that the complex will also include an abundance of parking, with 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 Central DuPage Hospital, NWMC's Marianjoy Rehabilitation Hospital and Advocate Good Samaritan Hospital. All of these systems have already developed new facilities in the area including 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 says. “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 to market the development. He says 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 notes that the 650-acre Cantera Business Park also has attractive amenities including hotels, restaurants, retail, entertainment and recreation.

“We are optimistic and bullish about suburban Chicago,” says Tim Hennelly, president of Ryan's Great Lakes region. “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.”

One of the unique features of this site is that it is development-ready and has already been approved, he adds. “We can break ground as early as this fall, or Spring 2017 at the latest.”

Instant Insights /

Ryan Cos. Filling Gap in Suburban Healthcare Market

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