Continental Redevelopment Pivot: Former Regal Cinema Site to Host 246-Unit Mixed-Use Complex

Continental Properties is transforming a dormant retail asset into a high-density, mixed-use community in Lake Zurich, signaling a broader shift in suburban land use. The developer plans to replace the shuttered Regal Cinema at 755 South Rand Road with Springs at Lake Zurich, a 246-unit residential complex on a 20.2-acre parcel formerly zoned B-3 Regional Shopping.

The Planned Unit Development (PUD) proposal includes ten buildings: seven two-story and three three-story structures, offering a mix of 27 studios, 98 one-bedrooms, 98 two-bedrooms, and 23 three-bedroom units. The site’s gross density comes to 12.18 units per acre, down from an earlier 282-unit plan.

A 2.4-acre commercial outlot fronts Rand Road, earmarked for a Quick Service Restaurant (QSR). MJK Real Estate Holding Company will develop the 4,900-square-foot building, potentially featuring indoor/outdoor seating and dual drive-thrus, with a signed Letter of Intent from Portillo’s contingent on residential entitlements.

The project aims to revitalize the site, which closed in August 2025, and provide infill housing to meet regional demand. Continental projects an economic impact exceeding $123.4 million over the project’s lifespan, with residents contributing $23.3 million annually to the local economy.

To move forward, the developer is seeking key PUD variances:

• Minimum Lot Area per Unit: 2,500 sq. ft. (standard 5,000 sq. ft.)

• Maximum Height: 40 feet / 3 stories (standard 30 feet / 2.5 stories)

• Parking Ratio: 1.6 spaces per unit (ordinance 3.8), creating a 113-space shortfall, justified by Continental’s portfolio data

The plan has drawn pushback from Deer Park neighbors, citing setbacks of 275–310 feet versus the proposed 15–40 feet from the southern property line. Concerns include stormwater management, noise, and building height, especially as the site sits above adjacent homes. Continental positions the residential development as a buffer between Rand Road’s commercial corridor and nearby single-family homes.

The project is advancing through final regulatory review, with commitments to private internal streets, stormwater management improvements, and pedestrian connections linking residents to surrounding commercial amenities.