Northbrook, Ill.-based Integrated Development Group LLC is abandoning its plans to convert the former Lakeshore Athletic Club building located on Chicago’s Lake Shore Drive into 139 units of senior housing after being unable to obtain financing for the estimated $80 million project, reports Chicago Real Estate Daily.
Luxury senior living developer Integrated Development Group bought the 374,000-square-foot, 19-story building in February of 2008 for nearly $40 million and planned to invest about $80 million into the conversion, the article says. The building, located at 850 Lake Shore Drive, had previously been used by Northwestern University as a dormitory.
Following the bankruptcy sale of nearby luxury continuing care retirement community the Clare at Water Tower after the poor economy—and resulting low occupancy—pushed it into defaulting on its municipal bonds, the development group wasn’t able to secure financing for the senior living conversion project, according to the local alderman.
Instead, Integrated plans to convert the building into 200 residential units, said Ald. Brendan Reilly in an email sent to 42nd ward constituents.
It’s unknown if those units will be apartments or condominiums, says the article, but given the current market for rental buildings, it’s likely they will be apartments.
Read the full article at Chicago Real Estate Daily.
Written by Alyssa Gerace