Associated Bank has provided a $22.6 million loan to Shorewood Development Group to acquire and renovate a long-vacant retail property in Buffalo Grove, Illinois. The financing supports the purchase and repositioning of a former 66,083-square-foot grocery store located at 1160 W. Lake Cook Road, at the intersection of Lake Cook and Arlington Heights Roads, along with an additional outlot site included in the acquisition.
The vacant building will be transformed into a two-tenant, grocery-anchored retail project known as Chase Plaza. Plans call for the former single-tenant grocery box to be reconfigured to accommodate Sprouts Farmers Market and a Club Studio fitness center, creating a new merchandising mix at the property. The redevelopment will return a long-dark big-box space to productive use, while introducing a specialty grocer and fitness offering to the surrounding trade area.
The grocery-anchored design is expected to be driven by Sprouts Farmers Market, with Club Studio complementing the tenancy as a fitness concept. The project will bring the first Club Studio location to the northwest Chicago suburbs, adding a new regional brand presence to the local retail landscape. By backfilling a vacant grocery store with two active retail uses, the redevelopment aims to increase property utilization and customer traffic on the Lake Cook Road corridor.
The building has reportedly been vacant for years, underscoring the significance of securing construction and acquisition financing to move the project forward. Associated Bank indicated that Daniel Barrins, senior vice president in the bank’s Commercial Real Estate division in Chicago, managed the loan arrangements and closing process.
This transaction also continues a longstanding relationship between the lender and the sponsor. According to Associated Bank, this is the 13th loan it has provided to Shorewood Development Group. The repeat engagement reflects an ongoing lending relationship focused on retail and redevelopment projects, with this latest loan supporting the repositioning of a legacy grocery box into a refreshed, multi-tenant retail destination.
