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WESTMONT, IL-Ryan Companies US, Inc. will develop a $35 million medical office building in this southwest suburb. The building will be constructed on six acres on the west side of Route 83, just north of Ogden Avenue. The facility will have around 120,000 sf in five stories. There is the possibility of doubling that space, given the right tenant, says Brad Wilson, VP of development.

“I’m looking for the larger user, the hospital system to come in and take this space,” Wilson says. “We’re looking for someone who would take a master lease and bring in all of the doctors they want for their organization. We’re looking for a larger, financially-stable organization.”

Wilson says the company has already seen significant interest in the property from hospital systems based in downtown Chicago, which want to expand their operation into a suburban location. Wilson says lease rates in the space are around $34, triple net. “Those rents are probably high for the immediate market, but there are other medical centers within a six-mile radius of the area that are getting those types of dollars,” Wilson says. “There’s not been a Class A medical office built in this market in 30 years, and the product that’s already out there is 100% leased. The existing buildings are dated and doctors like to be more on the cutting edge.”

Wilson says Ryan Cos. expects to break ground on the building in spring 2009, with an expected delivery of summer 2010. The company would consider a build-to-suit arrangement and there may be an option to purchase, Wilson says. Andy Polivka and Mike Siedlecki with the Polivka Group will act as leasing agents.

Until recently, the property served as an overflow facility for McGrath Lexus, from which Ryan bought the property. Wilson would not disclose the purchase price. He said the property was ideal for Ryan’s planned development, given its accessible and high-traffic location, which sees more than 120,000 passing cars daily.

“It’s a very high-end market for medical space,” Wilson says. “The demographic has a per capita income over $125,000 per household. The median age is under 40, which is great.”

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