U.S. Equities Realty Markets Children's Memorial Hospital Properties

Beginning September 2010, U.S. Equities Realty began to market much of Children's Memorial Hospital's Lincoln Park properties, prime real estate in the heart of one of the most desirable neighborhoods in the Midwest with a goal of closing on the sale of the properties by the time Children's Memorial moves to its new hospital, Ann & Robert H. Lurie Children's Hospital of Chicago, in downtown Chicago in June of 2012.

"The sale of our Lincoln Park properties plays a critical role in the resources Children's Memorial needs for the new hospital and the children for whom the hospital cares. Our goal is to maximize proceeds from the sale of the properties in a way that is also consistent with the site development goals of the community and the City," said Nahlah Daddino, Director of Community Relations for Children's Memorial Hospital.

Proposals from developers are due to U.S. Equities Realty by mid-December, but the properties went to market earlier to allow sufficient time for exposure to the largest number of qualified buyers and for potential buyers to conduct their own due diligence on the properties. In addition, sufficient time is being allowed for the buyer to go through the community and public approval process prior to closing.

Besides the main hospital, which sits on 3.5 acres on the corners of Fullerton and Lincoln, Children's Memorial is selling an eight-story office building at 700 West Fullerton Parkway and several properties adjacent to the hospital on Lincoln Avenue including an 850-space parking garage. The entire property offering totals just over 6 acres of land.

"Because of the size of the properties and their location at the center of one of the most vibrant and eclectic neighborhoods in the City of Chicago, we believe this is a very rare and attractive development opportunity for a sophisticated and creative development team that will attract national attention," said Marty Stern, Executive Vice President and Managing Director of US Equities. "The successful developer will be well-positioned to take advantage of a recovering market, in a high demand neighborhood, with little other new space with which to compete when the project is ready for delivery in 2014 or 2015.

"Children's Memorial and the Lincoln Park community have had a long, positive relationship" said Daddino. "In all of our interactions with our neighbors, the community has respected our hospital's needs and Children's Memorial has taken our neighbors' needs into consideration. We believe that the same respect and fair dealing will happen as the future of our property is determined."

In 2009, Alderman Vi Daley led an extensive community input process for the redevelopment of the site facilitated by Hellmuth, Obata and Kassabaum (HOK), an architectural firm that specializes in urban planning. The outcome resulted in a "CMH Site Reuse Feasibility Study Handbook" that summarizes the community's input and provides a guideline of principles for future developers to consider. These guiding principals are to respect the existing neighborhood; create a distinct mixed-use place, including housing for a variety of income levels; promote a multi-modal transportation network; support sustainable regeneration; and ensure continued community engagement

Children's Memorial will maintain a strong investment in Lincoln Park after the new hospital opens in 2012. Children's Memorial currently intends to retain the Clark/Deming, Children's Memorial Research Center (including Porter Park), Belden/Halsted and Kids Doc (1970 N. Clybourn) buildings, as well as continue to lease the Marcey building.