Israel’s largest hospital has inked a lease as the first anchor tenant to occupy a medical innovation center at the planned massive development site of the former Michael Reese Hospital in Bronzeville.
Sheba Medical Center signed with the joint venture behind the Bronzeville Lakefront Development, which is led by Chicago-based Farpoint Development. Farpoint plans to include the ARC Innovation Center as part of its first phase in the 15 million-square-foot development, whose constructed cost is estimated at $7 billion, Crain’s reported.
The entities have signed a memorandum of understanding but still have to come to terms on a final deal, according to Crain’s. Sheba opened its first ARC Innovation Center last year outside Tel Aviv, its main campus.
The inclusion of the ARC Innovation Center will allow the Bronzeville Lakefront Development venture to fulfill its early goal of establishing a life science campus focusing on health and biomedical technolog.
The center would occupy about 20 to 25 percent of a 500,000-square-foot building on the south end of the Michael Reese site. Senior housing, a community center and retail space will also be included in the first phase of mixed-use development, according to Crain’s.
The Bronzeville Lakefront venture, known as GRIT, involves Farpoint, Draper & Kramer, McLaurin Development Partners, Loop Capital, Bronzeville Community Development Partnership and Chicago Neighborhood Initiatives. Chicago-based Kaleidoscope Health Venture is teaming up with the venture on the health innovation center.
The Farpoint-led team is still pursuing funding sources for the project, and could seek tax-increment financing, Farpoint Principal Scott Goodman told Crain’s. The site also sits in a federal Opportunity Zone, so the venture can take advantage of long-term tax incentives that are meant to spur development in distressed areas.
The project also needs a zoning change before construction can begin. Goodman hopes to break ground early next year. [Crain’s] — Brianna Kelly