Isiah Real Estate and Gateway Partners to Develop Illinois Medical District Gateway Project

Isiah Real Estate and Gateway Partners to Develop Illinois Medical District Gateway Project
Illinois Medical District Commission Approves Plans for One Million Square Foot Gateway Real Estate Development

Project expansion underscores the growth of the Illinois Medical District and the demand for a denser, urban, mixed-use development to serve the more than 80,000 people who come to the District each day

CHICAGO, July 22, 2014 – The Illinois Medical District Commission (IMDC) approved an agreement today for a one million square foot real estate development that includes:
·    225-room hotel;
·    Retail and dining establishments;
·    Medical and administrative offices;
·    Laboratory space serving the region’s growing life science ecosystem;
·    Conference center;
·    High-rise rental housing units for students and young professionals;
·    Multi-family housing;
·    Parking structure, and;
·    Public plazas and green spaces.

The agreement was executed with Gateway Development Partners LLC, the master developer for the project. Gateway Development Partners LLC is comprised of Thomas Samuels Enterprises, East Lake Management & Development Corp., Isiah Real Estate, LLC, and Higgins Development Partners.

The Gateway Real Estate Development Project will serve as the gateway for the District and be a sustainable catalyst for economic development in the community and the greater west side.  It will provide the District’s 50,000 daily patient visitors, 30,000 employees, and 8,000 medical students with amenities that do not currently exist. This project is expected to generate an estimated 1,000 permanent jobs and thousands of construction jobs. The agreement also includes aggressive minority recruitment goals, support for hiring community-based individuals and a preference for strong labor participation.

“Today’s announcement serves as another indication of how community and economic development are creating jobs and economic growth in Illinois,” says Warren Ribley, executive director, Illinois Medical District Commission. “The Illinois Medical District—the largest medical district in the country—is transforming to meet the 21st century needs of the healthcare, life sciences, biotechnology and social service sectors that reside within our 560 acres. These diverse organizations are partnering to advance healthcare and life sciences innovation and improve patient care.”

“Gateway Development Partners demonstrated an in-depth understanding of the IMDC’s mission to be a leader in patient care and biomedical research while driving economic growth,” says IMDC president Jennifer Woodard. “The proposal was superior in its equity structure, site plan, expertise and its promised delivery of all development components at once. This means more jobs and a development that will serve our constituents within a shorter period of time.”

In January 2014, the IMDC issued an expanded Gateway Real Estate Development Request for Proposals (RFP) for the 9.5 acres of undeveloped land located at the gateway to the District at 2020
W.    Ogden Avenue and an additional .2 acre property located at 1910 W. Harrison Street. The most recent RFP, more extensive than a Gateway RFP issued in early 2013, was supported by a recent economic impact study of the District that indicated a demand for a larger development and was enhanced by a new Intergovernmental Agreement between the IMDC and Cook County.

Gateway Development Partners will incur all costs for the project, estimated to be approximately
$300 million. The District will initially be compensated by developers at the beginning of the due diligence period and again when due diligence has concluded. The Commission expects the District will ultimately collect more than one million annually in ground lease payments and that lease payments will increase by three percent every five years during the 75-year lease.

Highlights of the Gateway Real Estate Development proposal include:

·    Total development: 1.16 million square feet
·    10-story, 225-room hotel
·    92,000 square feet of retail space, including restaurants, fitness center, and a daycare center serving the IMD community
·    16-story, 200-rental unit apartment building designed specifically for young professionals and students
·    224,000 square feet of multi-family housing
·    100,000 square feet of laboratory space
·    88,000-square-foot medical office building
·    Five-story parking structure for approximately 500 to 700 vehicles
·    40,000 square feet of urban farm greenhouses

Hotel, retail and restaurant tenants have not yet been announced. The IMDC expects that the construction will begin in the spring of 2015.

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About the Illinois Medical District Commission
The Illinois Medical District Commission (IMDC) provides service by assembling the nation’s premier concentration of healthcare facilities and providers. The IMDC fosters the economic expansion in Illinois by supporting research and development facilities, including the expansion of social service organizations that assure the health and well-being of Illinoisans with special needs; creating Illinois’ largest emergency response and disaster preparedness community; and by fostering collaboration between federal, state, county and local governmental bodies in achieving these objectives.

Contact:

Heather M. Tarczan

Illinois Medical District Commission

htarczan@medicaldistrict.org

312-738-5800

 

 

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