The former Chicago headquarters of the American Hospital Association will be razed to make room for luxury condominiums that will sell for as much as $2 million each.
The complex and the 1.2 acres on which it sits along Lake Michigan were sold last week for an undisclosed price to LR Development Co., a Chicago-based developer of luxury real estate.
The sale also includes a long-term lease deal with Northwestern University, which previously owned the land.
Unloading the buildings will save the AHA almost $1.2 million annually. The AHA was paying $690,000 a year to maintain the empty buildings and another $489,000 in land rent to Northwestern, said Richard Wade, the AHA's senior vice president for strategic communications.
The complex, which combined has about 330,000 square feet, includes a 14-story and a 12-story building, plus a four-story annex structure. In 1994, as part of a downsizing effort, the AHA moved from its longtime Lake Shore Drive headquarters to new office space at 1 N. Franklin St. in downtown Chicago. The former site had been the AHA corporate headquarters since 1955.
Under terms of the deal, the AHA's compensation will be a rent refund of about $100,000, Wade said. The association, he said, has already depreciated the building off its books.
Interior demolition of the old headquarters began last week, and the buildings will be razed in about six months, according to LR Development.