MIDDLE MARKET HIGHLIGHT, JULY 2007

Champaign
Dan Marcec

The city of Champaign, Illinois, and its twin city, Urbana, are booming with development across the board, and significant projects cropping up in clusters throughout the area. Both communities are working to revamp their downtown sectors. There is heavy commercial development near the south end of the University of Illinois on Windsor Road in Champaign. And in Urbana, along Route 130, new Menard’s and Wal-Mart Supercenter projects are spurring ancillary growth.

One Main Development is developing M2 on Neil, a $41 million mixed-use project in Champaign, Illinois, featuring ground-floor retail and restaurant space; office and commercial opportunities on floors two through five; and residential condominiums on the upper levels.

Located near the intersection of interstates 72 and 74, Champaign is well-situated as a Midwest distribution hub, and due to the presence of the University of Illinois, the city is well-equipped to support research, engineering and financial businesses. Recently, Champaign acquired a contract from BP for biofuel research, creating significant activity in that sector. The city boasts a research park incubator that is currently at full capacity. Elsewhere in the business community, education and healthcare are the predominant employers.

“We’re very fortunate to have a strong team of developers in our region that have great respect for each other,” says Jeanne Gustafson, executive director of the Champaign County Economic Development Corporation. “They are very willing to work together, which is unique in itself, and are always willing to work in conjunction with our economic development initiatives.”

Major companies contributing to the healthy commercial climate in Champaign-Urbana include Mark Dixon with Atkins Group, who has completed a significant number of projects; Barr Real Estate; Fox Development; and Coldwell Banker Commercial Devonshire Realty.

Dixon and Atkins Group recently completed the Titan Warehouse at Apollo Subdivision in Champaign, which is a 131,000-square-foot industrial property featuring 30-foot clear ceiling heights. Built by Dodds Company and completed in 9 months, this project is “demonstrative of our ability to develop built-to-suit product for industrial clients,” Dixon says.

As part of the downtown revitalization in Champaign, One Main Development recently broke ground on M2 on Neil, a nine-story, 230,000-square-foot mixed-use project. Situated at the northwest corner of Neil and Church streets, the $41 million development offers ground-floor retail and restaurant space, office and commercial opportunities on floors two through five, and residential condominiums on the upper levels.

JSM Development has begun construction of the second phase of Gregory Place near the University of Illinois in Urbana. The project features retail on the ground floor, university administration space on the second and residential units on the top three floors.

In Urbana, several significant projects are taking shape as well. The plan for Orchard Downs, a residential community situated on 160 acres, suggests high-end, multi-purpose residential options that range from single-family homes to condominiums to active retiree housing. In partnership with the University of Illinois and the city of Urbana, JSM Development recently broke ground on Phase II of Gregory Place, a mixed-use project situated at 700 South Gregory. Located on the east end of the university campus, Phase II features 15,000 square feet of ground-floor retail and 35,000 square feet of university office space located on the second floor. Three floors of luxury residential units round out the development. Completion of this phase is expected in August 2008. Phase I features 90 residential units and 21,000 square feet of retail, restaurant and office space.

Looking toward the future, with the new BP contract there should be an increase in biofuel and energy research, and healthcare expansion is expected to occur as well.

“Champaign is poised for excellent growth, as we have a stable workforce and a stable economy,” Gustafson says. “The quality of life here is great, and we have a creative culture that allows our residents and businesses to find a niche in a variety of ways.”


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