Related Midwest is nearing the start of a long-awaited apartment tower in Streeterville after years of setbacks.
In 45 days, The Chicago-based firm will start construction on a 72-story skyscraper at 400 Lake Shore Drive, more than three years after receiving approval, Urbanize reported. The imminent groundbreaking is likely to bring a sigh of relief to local residents, as the property has had an unsightly hole in the ground for the last 15 years due to the failed 150-story Chicago Spire project.
Designed by Skidmore, Owings and Merrill, the tower will soar to a height of 858 feet, comprising 635 units, with 127 of them being reserved as affordable housing to meet the city’s affordable housing ordinance, Crain’s reported. There will be 300 underground parking spaces, as well.
Related Midwest indicated that financing for the project’s first phase is likely secured. The developer, however, did not confirm specific financial details but anticipates the tower’s completion by the third quarter of 2027.
In addition, Related Midwest committed $10 million to fund the nearby DuSable Park, with plans to complete it in conjunction with the first tower. The second phase of the project will feature a shorter tower with 465 units, contingent on market conditions.
While the project is commencing a couple of years later than initially planned, it coincides with a favorable climate for apartment owners in the city, with downtown apartment rents at record highs and a slowdown in new apartment construction, which could increase pricing power for landlords.
Curt Bailey, the President of Related Midwest, expressed excitement about the development.
“Positioned on the last waterfront site where Lake Michigan meets the Chicago River, the development of this site will strengthen the city’s connection to the river and Lake Michigan through the creation of beautiful public spaces and spectacular residences that will be a great new addition to the Streeterville neighborhood,” Bailey told Crain’s.
Related Midwest took over the site in 2014, inheriting the foundation of the unbuilt Spire. The original project was initiated in 2007 but stalled due to the financial crisis in 2008 and ultimately ended up in bankruptcy court in 2013.
— Quinn Donoghue
Read more
Development
Chicago
Chicago incentive package spurs affordable housing downtown
Commercial
Chicago
Alderman rejects Related Midwest’s mixed-use project at former Chicago Spire site