39,000 SF Office Lease Tellabs Building Naperville
A health care software firm founded by a member of Marquette University’s national championship basketball team is expanding to about 39,000 square feet, the latest company to lease space in Tellabs Inc.’s headquarters in the western suburbs.
JDA eHealth Systems Inc. signed a long-term lease for 39,215 square feet in the Tellabs building, 1415 W. Diehl Road in Naperville, said Los Angeles-based CBRE Inc., which represented the tenant.
The company was founded in the early 1990s by James Dudley, a backup forward on Marquette’s colorful 1977 team, which was coached by Al McGuire and included Chicago-area prep stars Bo Ellis and Jerome Whitehead.
Mr. Dudley was a principal in a trading firm on the Chicago Board of Options Exchange before starting JDA in the early 1990s, according to the company’s website.
JDA is nearly doubling its space as part of a move from 1717 Park Street, a Class B building less than 3 miles east in Naperville, said Corby Bell, JDA’s chief operating officer.
Telecom equipment maker Tellabs completed the 800,000-square-foot structure with high-end finishes in 2001 but in recent years has leased space to outside tenants. Recent transactions include deals with accounting and consulting firm Sikich LLC and cable and internet provider Comcast Corp. for 80,000 square feet each.
JDA nearly tripled its revenue and employee count in the past six to seven years, said Mr. Bell, who declined to specify annual revenue. JDA and an affiliated company, Next Recovery Source LLC, have about 150 employees combined in their current location, he added.
The new office can accommodate up to 200 employees and can be reconfigured for as many as 400, he said.
“Despite the economy, we’ve experienced incredible growth over the last few years,” Mr. Bell said. “We need more space, and the building we’re going to gives us really nice space for our employees, and for clients we bring in.”
JDA provides software called revenue cycle middleware, technology that allows hospitals to efficiently track registration, billing and payment of patient accounts, while Next Recovery Source is a collection vendor. JDA’s clients include about 40 hospital systems throughout the U.S., he said.
The move, made possible by executing a termination option in its current lease, is expected by April, he said. The firm has small satellite offices in Dallas and near Fort Myers, Fla., Mr. Bell said.
In addition to Class A space that comes mostly furnished and built out, one major selling point in the Tellabs building was the onsite data center. JDA currently must keep data both on and off site, he said.
“We were able to get unbelievable economics compared with doing a data center somewhere else,” said CBRE Senior Vice President Jon Springer, who represented JDA along with CBRE Vice Chairman Gary Fazzio.
Tellabs occupies about half of the office space in the five-story building, with several tenants using most of the remaining half, a Tellabs spokesman said. “With this lease, the building will be pretty full,” the spokesman said.
Source: CommercialRealEstateDaily, Ryan Ori October 04, 2013