Chicago Real Estate Reacts to United Center Redevelopment

After news broke of a planned $7 billion redevelopment of many of the parking lots surrounding the United Center, real estate professionals with a stake in the West Side knew they were at the epicenter of Chicago’s next hot spot.

“The hope is that it’s a Wrigleyville eventually,” said Century 21 Agent Steven Powers, referring to the high-demand retail and residential market around the Cubs’ stadium.

Powers owns property in the area and sold a client’s holding for $8 million to the United Center’s owners last year. Although he didn’t know what the plans were, he said he had been hearing rumors for years. It was one of $44 million worth of land purchases United Center leadership has made in the area in the last few years.

Chicago Bulls President and CEO Michael Reinsdorf and Chicago Blackhawks Chairman Danny Wirtz finally made those plans public Tuesday. The massive 10-year redevelopment, named the 1901 Project, envisions a mixed-use district that spans 55 acres. It includes a 6,000-seat music hall, a hotel, retail buildings, public open space and thousands of apartments.

The 14-million-square-foot proposal aims to turn the United Center into the centerpiece of a broader entertainment district. This aligns with trends in modern professional sports venues that encourage fans to arrive early and stay late, thereby creating year-round revenue opportunities. The plans hinge on redeveloping many of the surrounding parking lots.

The sea of parking lots breaks up an otherwise growing and dynamic urban environment. To the northwest, Bally’s Casino recently secured $940 million in financing for the redevelopment of the former Chicago Tribune printing plant at 560 West Grand Avenue into a gambling-and-entertainment hub. And west of the United Center, Fulton Market and the West Loop have bustled with new development over the past decade.

“It’s going to be good for neighborhoods in all directions from the United Center … If you look around there, it’s a dense part of the city, but it’s just parking lots and relatively low density housing, so it’s going to improve the area a lot,” said Drew Breneman, founder and CEO of Breneman Capital.

“It’s going to be a real shot in the arm for the whole area,” he said.

Breneman owns three multifamily properties in the area, two of which he bought from Bulls owner Jerry Reinsdorf’s Michigan Avenue Real Estate.

The entertainment aspect of the United Center redevelopment points to opportunities for Fulton Market, said Fulton Market Companies Founder and CEO Alex Najem. His developments include several Fulton Market offices, mixed-use and retail properties. He said the project could spur a wave of development on the more sparsely developed west end of the Fulton market neighborhood closest to the United Center.

“I think it will drive hotel demand drastically,” he said.

Luxury retailers that typically favor the Gold Coast could open new locations in Fulton Market or relocate there, Najem added.

As the plan begins to take shape, investors will have a clearer picture of the opportunities it presents. Since it has not received any city approvals yet, the current proposal could be far from its final form.

“It’s great for the neighborhood, and it’s also a question of what is feasible. … It will take time to manifest and get city council approval,” said Brad Feldman, senior managing partner at Interra Realty.

He compared the area’s potential to Logan Square or Bucktown’s 10 to 20-year transformation but likely on a shorter timeline.

In the meantime, local players are assessing their properties in the area and eyeing new opportunities.