Buffalo Grove project loses prospective tenant

One of the only signed tenants has pulled out of a development only recently approved in Buffalo Grove.

Advocate Healthcare opted to stay in its current 8,000-square-foot medical building on McHenry Road instead of moving into the proposed 28,000-square-foot one at Berenesa Plaza, at Deerfield and Milwaukee avenues.

"It was a business decision," said Nate Llewellyn, manager of communications for Advocate. "There was a contract, an agreement, and there was an out clause."

He said if the location wasn't zoned by a certain date, Advocate had the right to pull out. The village didn't grant zoning until September, a few months after that date in July.

Buffalo Grove Village Trustee Jeff Berman, who has had his qualms about the project, said the news -- which came a few weeks after the board approved the project -- makes him even more wary.

"I have had significant concerns about what this developer will be able to deliver as compared to what they promised," he said, "and their losing the Advocate tenancy certainly does nothing to alleviate that concern."

Although Berman did not vote against the proposal, he cast a "present" vote that went along with the majority approval on Sept. 24 and he has voiced his concerns about the project.

The village board has been discussing Berenesa Plaza at length because it serves as a gateway into town and one of the last chances for a large, multiuse project.

Ken Kuchler, the project manager with developer Single Site Solutions, said it was a decision on Advocate's part and should not be seen as a reflection on the developer's ability to bring in tenants.

"I don't anticipate it changing the site plan," Kuchler said. "I'm still very confident in the plan."

He said the development group will still be seeking some sort of medical tenant in the building.

The major focal point of the site for the village, however, is the restaurant and retail component. Kuchler said he's been working to sign those leases.

Village Trustee Bruce Kahn, who has supported the project, said he's confident the developer will do what it can to bring restaurants and retail in. The medical tenant, he said, is no huge loss.

"I'm still very confident that the developer is going to put together a solid plan," he said. "What's going to make or break that plaza is the capability of bringing high quality, mass appeal restaurants and retail."

Village President Elliott Hartstein agreed that it seemed like an economic decision on Advocate's part and shouldn't affect the development in the long run.

"The bottom line for us as it's always been is we want to see the enhanced retail side, in terms of restaurants," he said. The medical building "was not the focal point of the center."