Pacific Reach Lists Chicago Sites Entitled for Apartment Towers

Two sites with entitlements for residential towers in West Loop Gate hit the market asking $42 million.

Vancouver-based developer Pacific Reach Properties planned to build two towers on the 1.5-acre lot at 601 and 625 West Monroe Street, gaining final approval from the city in 2021. The developer is seeking a buyer for the shovel-ready sites or a partner to help carry out the vision.

“It’s extremely hard to get approvals at that level, so we’re looking to get this project built,” said Mike Nardini of CBRE, who is marketing the property along with John Jaeger and Tom Svoboda.

The $42 million price includes the approved mixed-use development plans. Developers typically have six years from the time of city approval to line up construction financing and start construction before having to re-submit development applications to the city. That means the clock could be ticking down on this project.

The high costs of debt and construction have led to more developers putting their entitled sites up for sale, said Compass broker Tim Sheahan, who has been selling new-construction condos at The Embry in the West Loop.

Local developer Quest Realty recently sold off a rare empty lot in Edgewater for $5 million, where it secured entitlements to develop a five-story apartment building.

Pacific Reach’s site, entitled for 1,050 units, could be a challenging sale because the bigger the plans are, the smaller the buyer pool of developers who could take on such a project, Sheahan said.

“You would need a big national player to do a project that size for an apartment deal right now,” Sheahan said.

The property is also listed for sale on Pacific Reach’s website as a “1.5 acre surface parking lot.” Pacific Reach Properties did not respond to a request for comment Monday.

The Canadian firm bought the property from Chicago developer Fifield Companies in 2017 for $28 million, according to property records and Chicago YIMBY. Pacific Reach took out an $11.5 million loan on the property the following year, which it converted into a revolving loan in 2023, property records show.

Fifield Companies also had big plans for the land, which never came to fruition. Steve Fifield’s firm had been trying to build a 75-floor office building on the site since 2013 before deciding to sell the land.

Pacific Reach was ready to invest in Chicago multifamily at the time. After purchasing the West Loop lots from Fifield, it bought its first multifamily building in Chicago in 2018 when it paid $121 million for the 33-story Linea apartments in the Loop.

As Pacific Reach began fleshing out plans for an apartment complex in the West Loop, the developer split the property into two lots, one for each apartment tower. The larger site, at 601 West Monroe, is approved for a 47-story tower with 562 residential units. This tower is also planned to include 18,475 square-feet of retail space and a 218-car parking garage.

The smaller site, at 625 West Monroe, is approved for a 40-story building with 491 units. The plans for that building also include 7,445 square feet of retail space and 126 parking spots in its own garage.

601 West Monroe Street is priced at $22.48 million, which is $40,000 for each planned rental unit or about $650 per square foot, while 625 West Monroe Street is asking $19.64 million, also $40,000 per unit, or $688 per square foot.

Even back in 2021, Pacific Reach’s project was seen as ambitious as the occupancy rates of downtown apartment buildings were declining year-over-year.

The brokers selling the two sites on West Monroe Street may have to be patient or flexible in accommodating buyers looking to use the sites for other purposes, Sheahan said. Pacific Reach is “open to discuss” offers from buyers who don’t share its multifamily vision for the site, Nardini said.

“Sometimes you have to wait until market dynamics change a little bit,” Sheahan said, citing the challenges high interest rates and local taxes pose for development. “You need a good market environment to be able to get those deals done.”