Magnificent Benevolence

DePaul University, in partnership with Chicago-based real estate services firm The Scion Group, will transform a 26-story, extended-stay residence for executives on Chicago's "Magnificent Mile" into the university's first downtown student apartments, under a sublease agreement. The sublease of the recently rehabbed 119-unit corporate residence at 320 North Michigan Ave. will allow DePaul to offer university-affiliated housing to an additional 230 full-time students over age 21 in the fall of 2002. The building, which totals approximately 90,000 square feet, will be called DePaul on Michigan. The Scion Group will operate and manage the property. Constructed in 1983 as a luxury apartment building, 320 North Michigan was remodeled into a residence for business executives just 18 months ago. Most of its 119 units are studio and one-bedroom apartments, ranging in size from 550 to 700 square feet. Each furnished unit features a modern kitchen with maple wood cabinets, dishwasher, electric stove, refrigerator and breakfast bar, in-unit washer-dryers, air conditioning, track lighting, and ample closet space. Many rooms have views of "Magnificent Mile" landmarks. A Scion survey of area universities conducted for the University Center project showed a shortage of student housing in downtown Chicago due to a record number of student enrollments at area universities, the growing popularity of urban campuses, continuing increases in land and housing costs and the conversion of rental properties to condominiums. Potomac Hospitality Services, which holds the master lease on the building, offered to sublet the facility for DePaul's use, with several options to renew. Based in Washington, DC, Potomac has developed, owned or managed more than 4,000 hotel rooms and furnished apartments over the past 25 years, including a Washington, DC property that has been converted to student apartments for George Washington University.