Why JDL Sees Healthcare As Crucial In Foundry Park Megaproject

JDL Development’s Foundry Park megaproject has made headlines on the back of its sweeping plans to bring more than 3,000 new housing units to a portion of the former Lincoln Yards site, but CEO Jim Letchinger also envisions the development’s healthcare component as a key cog in the master plan. 

The proposed healthcare portion of the site is capable of supporting up to 200K SF of medical office space, which JDL has partnered with Remedy Medical Properties to develop. When evaluating the site, the company felt it was a perfect fit for medical use, Letchinger said at Bisnow’s Chicago Healthcare Summit, held at 919 W. Fulton St. in late June. 

“Chicago has probably the best healthcare of any major city in the country, and they're always looking to expand,” Letchinger said. “Where better than into a dense residential neighborhood? It's hard to get a 100K SF land site in Lincoln Park or Bucktown, so we felt it was a great spot.”

JDL purchased the land for Foundry Park from Bank OZK for about $84M in October, after months of rumored interest in the site. The land, the northern portion of Sterling Bay’s former Lincoln Yards tract, had been taken over by the bank after that megadevelopment failed to get off the ground.

Letchinger said that although he isn’t as experienced in developing medical offices, JDL saw an opportunity to bolster the project's long-term success by adding a medical use. He pointed to walkability as a growing factor in where hospitals choose to locate, which is closer to the people who need care most. With an aging population and a growing base of young families in surrounding neighborhoods, he said demand for healthcare access is only intensifying.

“It becomes part of a community, and the community also supports the healthcare,” he said. 

The medical property, located on a portion of the site that fronts Elston Avenue, will be within walking distance of the rest of the community while also offering close access to the highway. The location gives the property good signage visibility from the expressways, which has been a compelling pitch to potential users of the space, Letchinger said. 

The location also offers ample parking space, he said. 

Dave Martin, executive vice president and managing director at Remedy Medical Properties, said there isn’t a specific focus on a particular type of tenant, such as a primary care practitioner or a pediatric group, for the space. He said the site lends itself to a large specialty group or a multispecialty clinic, given the building's size and scale. 

The megadevelopment’s hotel property may also drive people to the healthcare facility as families seek treatment, depending on the particular use case, Letchinger said. The project will run shuttles to the Red and Brown lines, rather than relying on CTA buses, to increase accessibility to the development.

Letchinger confirmed that the project’s first phase, totaling 1.6M SF, is on schedule to break ground in October. He said the company plans to “start off with a bang” and show the industry that the project is the real deal.  

“It's a once-in-a-lifetime opportunity,” Letchinger said. “My kids would laugh. They would say, ‘Dad, it's your third once-in-a-lifetime opportunity,’ but this is probably my last once-in-a-lifetime opportunity.”