Mavrek Development Scales Back Chicago Apartment Project

Mavrek Development’s vision for an 11-story apartment complex on Chicago’s North Side is no longer in the cards after the company pivoted to a more feasible five-story development.

The local developer scaled down its project at 925 West Belmont Avenue in the Lakeview neighborhood by over 75 percent, dropping the unit count from 210 to 46 amid difficulties financing the previous plan, Crain’s reported.

Reducing the project’s scope will make it easier to finance and faster to execute, answering the rental market’s strong demand, Mavrek CEO Adam Friedberg said.

Uncertainty over interest rates and tariffs are major obstacles to securing equity for real estate projects nationally, he said.

The revised project includes 5,300 square feet of ground-floor retail space and seven parking stalls, and City Council approval isn’t required.

Mavrek hasn’t yet secured funding for the project but would like to start construction in the second quarter.

The reworked proposal differs from earlier plans that would have encompassed the building housing Ann Sather restaurant at 909 West Belmont Avenue. That property will now remain untouched. Longtime tenant Belmont Army Vintage will have to relocate to accommodate the revised plan, and Mavrek is in discussions with other retail tenants regarding the plans.

The difficulties in securing financing due to wary lenders speaks to the scant pipeline downtown. Fewer than 300 apartment units are expected to be delivered in the downtown market this year, one of the smallest numbers in two decades.

The shortage of multifamily deliveries has contributed to the recent rise in rents. The average rent for premium apartments reached $3.60 per square foot in the fourth quarter, marking a 2.56 percent increase over the same period the year prior.

— Andrew Terrell