Lincoln Park Hospital site handed over to new owners
(Crain's) — Developer Mark Hunt has settled a nearly $31-million foreclosure case against the shuttered Lincoln Park Hospital by handing over control of the five-building complex.
A venture owned by longtime North Side developers Michael Supera and Richard Zisook last month took title to the property, 550 W. Webster Ave., after buying the note from the original lender earlier this year and filing a foreclosure suit.
The two plan a massive redevelopment of the former hospital, including 170 units of senior housing, 120 high-end condominiums and retailing, says Mr. Zisook, president of Chicago-based Richard Builders Inc.
Related story: Lawsuit seeks control of Lincoln Park Hospital site
In a twist, the original lender, Fifth Third Bank, is the lender again, issuing a $25-million loan to the Supera-Zisook venture, according to a copy of the mortgage filed Nov. 17 with Cook County Recorder of Deeds.
When the foreclosure suit was filed in July, the balance due on the loan was $30.7 million.
In another twist, Mr. Hunt, of Chicago-based M Development LLC, is retaining an unspecified stake in the property, the mortgage shows.
Handing back a property after a loan default typically wipes away any equity interest of the borrower.
Mr. Hunt has a "very minority interest" and will advise the developers on retail aspects of the development, Mr. Zisook says.
"I think it's lucky for him that we popped in," he says.
The three-acre site, at the intersection of Geneva Terrace and Lincoln and Webster avenues, has been coveted by developers since at least 2002, when the former hospital operator sold the 575,000-square-foot facility. The hospital leased back the property until it finally closed last year.
Mr. Zisook says he has already had talks with Chicago-based Senior Lifestyle Corp. about developing senior housing in a six-story building at the corner of Geneva Terrace and Webster Avenue. That building also would include about 15,000 square feet of retailing.
Next door to the east, the 12-story main hospital building would be redeveloped with condos, he says.
The existing facades would be replaced with new ones that "will be traditional, that will blend with the existing architecture of the neighborhood," he says. Chicago-based Hartshorne Plunkard Architecture Ltd. is designing the project, Mr. Zisook says.
Messrs. Zisook and Supera also plan to add about 18,000 square feet of retail space to a 300-car parking garage on the south side of Webster.
While Mr. Hunt keeps a stake, his former partner in the development, John Terzakis, is no longer involved, Mr. Zisook says.
Mr. Hunt declines to comment. Mr. Terzakis, CEO of Willowbrook-based Single Site Solutions Corp., did not return a call requesting comment.
