Shoreland resold to condo builder for $10 million

By Blake Rachowin

[img id=”80103″ align=”alignleft”] Shoreland Hall has changed hands once again. Kenard Developers, the company that purchased the dormitory from the University in 2004, resold the property to R.D. Horner & Associates late last month.

The transaction came after the untimely death of Hal Lichterman, Kenard’s former co-president. Lichterman, along with his wife Carol, planned to convert the dormitory into high-end condominiums and had already obtained the necessary citywide approvals for construction.

Carol Lichterman refused to elaborate on her motives for reselling the Shoreland, citing her continued grief over her husband’s death.

The University sold the Shoreland, which houses over 600 students and faculty members, to Kenard due to rising maintenance costs and attempts to further develop south campus. Horner will take over the property in 2008 and continue with Kenard’s exact conversion plans.

Although the University sold the property to Kenard for only $6 million, Kenard managed to resell the property only two years later for $10 million.

“In retrospect, the University probably should have held onto the property for longer,” Webber said. “We thought we went through a competitive process two years ago, but we likely would have received a better price had we held onto it.”

Even before Kenard acquired the property from the University, Horner had expressed interest in the property. “Horner & Associates was actually one of the three initial bidders on the property,” Webber said.

The University, however, accepted Kenard’s bid over Horner’s because, according to Webber, Kenard had a better track record in Hyde Park and the rest of Chicago.

“Given the death of Mr. Lichterman, we are pleased to have [R.D. Horner & Associates] as the new builders,” Webber said.

“What appeals most to me about the property is its historic significance and of course the location is clearly superb,” said Robert Horner, of the Evanston-based Horner & Associates, to the Hyde Park Herald.

Horner & Associates plans to reopen the Shoreland as early as late 2009.

Until then, the University is solely responsible for the upkeep of the building, Webber said.

Despite student movements for the University to retain the Shoreland, however, Webber debunked any rumors about the University’s reconsideration of the property.

“There is really no chance that Shoreland will still be a dormitory,” he said. “The University’s reasons for selling the dormitory are as strong now as they were in 2004.”