Senior housing to revive old Lakeshore Athletic Club

December 3, 2007

BY DAVID ROEDER Staff Reporter

Northwestern University has found a buyer for the former Lakeshore Athletic Club, 850 N. Lake Shore Drive, that will save the building and turn it into housing for seniors.

The buyer is Integrated Development Group LLC, a Northbrook-based firm. Downtown Ald. Brendan Reilly (42nd) said today Integrated has agreed to an $80 million renovation that would preserve the 19-story building.

Reilly said the plan calls for 139 senior living units and 11 assisted living units, all marketed to the luxury market. The building, which dates from 1927, is a former club for high society that most recently became a dormitory for Northwestern students.

Concern arose about the building because Northwestern had a deal to sell it to a developer who wanted to tear it down. The building is not a landmark, but Reilly sided with Streeterville residents who argued it should be saved.

“I’m thrilled that the building would be saved, especially after some argued that it was economically impossible to do that,” Reilly said. He said the project will address a “critical need” for senior housing in his densely built ward.

A public relations representative for Integrated confirmed the deal with Northwestern.

The university earlier this year struck a deal with Fifield Cos. that was contingent on city approval to demolish the building. Sources said Fifield agreed to pay more than $40 million for the building.

Integrated’s price is believed to be slightly less than $40 million.

The company is headed by Matthew Phillips, a former executive at Classic Residence by Hyatt. Reilly said it has financial backing from National Electrical Benefit Fund.