CHICAGO-With redevelopment already beginning to engulf its campus, Mercy Hospital is selling off eight acres to Eastgate Village LLC, which plans to build a $150-million multifamily community. The development team consists of Cleveland-based Forest City Enterprises and Fogelson Development, which are building the Central Station community further north.

The multifamily development will rise on the east side of the hospital campus, located between 25th and 26th streets, and from Michigan Avenue to King Drive. The estimated 550 townhomes, duplexes, senior living units and condominiums will be priced from $185,000 to $450,000. Sales are expected to begin this fall. “The development will enjoy views of the city and lake and is proximate to public transportation and is convenient to the entire area,” says Eastgate Development chairman Gerald W. Fogelson.

Mercy Hospital will use proceeds from the land sale, as well as restructured debt, for improvements to the 517-bed facility, originally built in 1960. Eastgate Village LLC still needs a recommendation from the plan commission and city council approval before building.

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