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BOLINGBROOK, IL-A $60-million mixed-use development being planned by Podolsky Northstar CORFAC International and Peak Development has received village approval and will begin construction this fall. The 21-acre development at Falcon Ridge Way and Janes Avenue is planned to eventually include up to 200,000 square feet of office and 316 apartment units. Work will begin in the coming months on site infrastructure and the first 79-unit apartment building. GlobeSt.com originally reported on the project in March when plans were first announced.

“Bolingbrook is a phenomenal location with great access to Interstate 355, and not far from Interstate 55,” Randy Podolsky, managing principal of Podolsky Northstar, tells GlobeSt.com. “You can get into the city easily, and this location has great labor markets. It’s just a great place for a company to have its corporate office, or for residents to live and to make a permanent home here.”

The Podolsky/Peak partnership recently obtained an extension of funding for pre-development activities from North Shore Community Bank. The team also received approval for two site plans as well as variances, due to the fact that plans may be adjusted in the future based on market demand.

“It depends on the mix, and with the approval of the two site plans and variances, we have a lot of flexibility,” Podolsky says. “Bolingbrook is a whole new community from what it was years ago. The advent of Interstate 355 and the 355 extension makes it right in the middle of everything.”

The team will begin work this fall on the first building of an age- and income-restricted apartment community planned for the site. The development’s residential component could include anywhere from one to four 79-unit buildings. Rental rates will be lower than typical rents in the area, as the project will be funded by the Illinois Housing Development Authority.

Bolingbrook is located in the southwest suburban submarket, where office occupancy rates are around 86%, according to Cushman & Wakefield’s Q1 market report. As a result of the amount of product currently on the market, Podolsky says spec development of office would not begin for at least another four years. When it is developed, office could range in size from one to three buildings of one to three stories, totaling as much as 170,000 square feet of conventional office and 30,000 square feet of medical office. The developers have told GlobeSt.com asking lease rates would range from $16 to $18 per square foot net.

“Everything has adjusted. Is there the same deal velocity? No. Have rents been compressed? Yes,” Podolsky says, pointing out a silver lining to the down economy. “This is a market where construction costs are down 20%. So we’ll just ride it out.”

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