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I would look in the South Loop. It is becoming "family friendly," but it still is a bit spotty. Other than that, I can't think of too many great recommendations that are "centrally located," but I have plenty of friends that live in various neighborhoods (Wicker Park, Lakeview, West Lakeview, Roscoe Village) and commute to both of those. How short do you want the commute? Central to LUC isn't really the issue (it's pretty central in and of itself), it's more U of C. Also, depending on how much you want to spend, you could look downtown.
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