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FOR IMMEDIATE RELEASE
Contact: Edith Muyinda
GONZO, Inc and Beitler Real Estate Corp. vying for 850 N. LSD 
GONZO Development, Inc is vying to acquire 850 N. Lake Shore Drive, a historic 350,000 square foot building that was originally built as the Lake Shore Athletic Club and most recently used as student housing by Northwestern University. The property is located in the Streeterville neighborhood of downtown Chicago, Illinois. 850 North Lake Shore was originally built in 1927 as an exclusive health and social club. The Lake Shore Athletic club functioned as a private club until 1977 when it was purchased by Northwestern University, which converted it to student housing. 850 North Lake Shore has 17 floors and is currently being used as a health club facility. The property is currently configured with 444 rooms on floors six through 17 and common rooms and athletic facilities, including a pool, on the lower floors. 850 North Lake Shore is zoned for residential redevelopment up to 200 units and features views of Lake Michigan and a Lake Shore Drive address. "The location is irreplaceable," says Jason Gonzales, President of GONZO. "Because of its location boasting grand, unobstructed views of Lake Michigan, some developers have proposed its demolition, but we have a grand plan for the redevelopment of this historic property-for restoration to its former grandeur." The partners plan a $95 million adaptive reuse project to redevelop the building into high-end luxury rental apartments, along with parking for 200 cars and other amenities. The building sits in a location boasting stellar views of Lake Michigan and North Lake Shore Drive, directly across the street from the residential buildings designed by prominent Chicago architect Mies Van Der Rohe. GONZO and Beitler plan to seek city of Chicago landmark status for the building as well as move it on to the National Register of Historic Places. Once this process is complete, the building will be eligible for the 20% IRS rehabilitation tax credits. The team plans to syndicate those credits into equity, boosting the overall projected Internal Rate of Return (IRR) to its investors by 18%. |