Developer Continues Work on Raising Equity for $800-Mil Lakehurst Rebirth

WAUKEGAN-A plan to create a model planned community out of a moribund shopping center on the outskirts of this city along Lake Michigan 50 miles from Chicago is on hold as the developer continues to arrange equity financing. However, Martin Tuohy remains optimistic his two-year quest to redevelop the Lakehurst Shopping Center ultimately becomes the $800-million shopping center, educational, entertainment, office and condominium development he envisions.

“What we’re doing here is a complex and difficult plan,” said Tuohy, who would buy the shopping center from Cleveland-based Richard E. Jacobs Group. “It’s a community where you’ll have everything you’d look for.” The closest example in terms of proximity is the downtown redevelopment of northwest suburban Arlington Heights, Tuohy said, a series of new residential and retail buildings around the Metra commuter station. Tuohy’s University Station would add a college and offices near a new Amtrak station on the line serving Chicago and Milwaukee, making it a “smart growth” development intended to add fewer cars to already congested Lake County highways.

By the end of January, the once-successful 1.25-million-sf regional shopping mall serving much of northeast Lake County will be 80% vacant. The remaining tenants, including a barber shop, gift shop and eyeglass store, are moving by the end of the month to make way for redevelopment. Its only remaining tenant is retailer Carson Pirie Scott, which has had a store here for 30 years. The store is likely to stay, though in less space than the 250,000 sf it already has at its anchor location.