A prominent real estate developer has scaled down its construction plans in Skokie from a large residential complex to a retail development.
Scott Gidwitz, the son of business executive and Republican fundraiser Ron Gidwitz, has dropped plans for a nearly 500-unit apartment complex in Skokie, citing high borrowing costs and broader economic pressures, the Chicago Tribune reported.
Instead, Gidwitz now plans to build a two-building retail project on a 6.2-acre tract owned by his family at 5440 Touhy Avenue. Tenants will include Chase bank, Cava Mediterranean restaurant, and First Watch breakfast chain. The restaurant building will span about 6,500 square feet, according to planning documents, and the square-footage of the bank building wasn’t reported.
The retail development was altogether “much easier to execute,” Gidwitz said.
“In 2022, it made a lot more sense to do a mixed-use project there,” Gidwitz said. “Unfortunately, the market conditions did not support that as interest rates rose and inflation obviously went through the roof.”
The previous plan, approved two years ago, called for 494 apartments, 1,000 parking spaces, and a cannabis dispensary near Linder Avenue.
The retail development is slated to feature a drive-thru for Chase Bank and Cava; it will be the first Illinois location for the Mediterranean restaurant chain to offer a drive-thru.
Cava anticipates a 15 percent growth rate over the next two years. First Watch operates seven suburban Chicago locations.
The Chicago retail market is very strong, as is the case with metros across the country. The vacancy rate dropped to a 30-year low of 4.7 percent in the third quarter, according to Matthews. About 1.9 million square feet of retail space was absorbed in the year ending Oct. 1, indicating high demand. And not much is being developed. About 830,0000 square feet is in the pipeline, and 80 percent of that is pre-leased, according to Matthews. The market is expected to stay balanced through next year.
— Andrew Terrell
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