The Chicago real estate market has seen tremendous growth following the disruptive effects of the COVID-19 pandemic. In the first half of 2022, more than 20 projects have been added to the city’s development pipeline. The majority of these projects are a mix of high-end residential apartments, condominium developments, and community-focused affordable housing projects funded by a recent $1 billion affordable housing package. While developers must still brace themselves for rising construction costs and a harsh upcoming winter, there is no question that the summertime brought about considerable market growth for major players in the industry.
Development Updates in the Chicago Area
Bally’s has generated the most buzz in the Windy City this summer. In terms of attention and dollars, Chicago’s largest recent development project is the $1.74 billion bid to build the city’s first casino. The site will be 30 acres and include a hotel, a 3,000-seat theater, an outdoor music venue, and other amenities. This plan has also inspired proposals for high-density high-rise developments nearby.
Shapack Partners, a firm that previously played a role in creating Chicago’s Fulton Market, is also poised to be a major player in the development of land around the casino. Shapack paid $25 million for a 3.5 acre River West campus previously owned by the Salvation Army, where they plan to develop a 141-key hotel, retail shops, and restaurants. The master plan will be divided into four parcels across five city blocks. The designs include up to five towers.
Sterling Bay and Magellan Development Group have also been busy this summer collaborating on their newest project, the Millie on Michigan, a 47-story tower that overlooks the Millenium Mile at 300 N. Michigan Ave. The building rises 510 feet and is home to 25,000 square feet of retail space and a 280-key CitizenM hotel (on floors 6 through 15). Topping off floors 17 through 45 will be 289 units of luxury apartments. Amenities include a state-of-the-art fitness center, outdoor terrace, swimming pool, and resident lounge with kitchen space and private coworking pods. Residents have already started moving in, and even more apartments are becoming available. CitizenM will also launch its hotel portion at the end of September.
Finally, in the affordable housing market, DL3 Realty has proposed a mixed-income housing project near their Englewood Square retail development. Thrive Englewood will be built in two phases and will have 108 residential units, ten of which will be affordable housing.
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Illinois Digest