Ryan Plans $35M Medical Office in Suburbs

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.”