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CHICAGO-Integrated Development Group LLC, based in Northbrook, has acquired the former Lake Shore Athletic Club, in Chicago’s Streeterville neighborhood, and plans to redevelop the building into luxury senior housing. Integrated acquired the 374,000-sf building, at 850 N. Lake Shore Dr., from Northwestern University for nearly $40 million, confirmed Matt Phillips, president of Integrated. The company plans to spend an additional approximate $80 million to renovate the building, Phillips says. Integrated’s partner for the project is Washington, DC-based National Electrical Benefit Fund.

Matthew Lawton, with Holliday Fenoglio Fowler, represented Northwestern in the sales transaction. The 17-story building was designed by Jarvis Hunt and constructed in 1927 as an athletic club. Northwestern used the building as graduate student housing for 30 years until 2005, when it was closed “because of declining occupancy by students,” a university spokesman says. “It was basically under-used and not meeting the needs that we had been using it for,” he says.

The new project will have 128 independent living units and 11 assisted living units, Phillip says. “We think that the reason that we are able to [have the building] work for luxury senior housing is because it has a great deal of common areas,” he says. The average size of the independent living units will be 1,650 sf, with the average size of the assisted living units being 750 sf, which is “large from an industry standpoint,” Phillips tells GlobeSt.com.

Residents will pay an entrance fee, that will initially be 90% refundable when they leave, and will pay a monthly fee, he says. “On average, our residents will live with us 12 to 15 years,” Phillips says. The monthly fee will include 30 meals a month, concierge, trainers and housekeeping. Additional services will be available for purchase on an a la carte basis, he says.

Integrated plans to preserve the majority of the building’s interior, including the two-story banquet room and a lounge. Pricing has not been set yet but will likely be comparable to competitors in the area, which charge approximately $700 per sf, he says. The facility will also have a fitness center, a salon and spa, a theater and valet parking. Integrated plans to begin taking deposits July 1, Phillips says. Construction is expected to begin in the middle of 2009 and be completed in 2011. Booth-Hansen is the architect for the project.

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