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Illinois’s first co-housing development saw shovels hit the ground last week, and membership chair Susan Stall said it is gratifying to see the project coming to fruition after years of planning.

Sitting on a 3.51-acre site at 5300 Centennial Blvd. and in the shadows of the district’s mural-adorned former grain silo, the large warehouse is owned by an LLC affiliated with Nashville-based developer Nathan Lyons. A multi-page document submitted to Metro suggests an adaptive reuse of the existing structure, with office and retail spaces planned. A permit, valued at $75,000 and including Nashville-based City Construction, has been issued to allow for interior demolition. Lyons, founder of Vintage South Development, specializes in reinventing industrial buildings with retail, restaura...