January 2, 2015

Chicago's 5 Biggest Multifamily Developments

The Chicago area multifamily pipeline's steady flow shows no signs of slowing in 2015. We tracked down the five biggest projects planned, proposed or under construction with the help of our friends at Reis.

1. Atrium Village

Atrium Village

Last summer, Vancouver-based Onni Group paid $50M (including $35M in financing from Citibank) for the 309-unit apartment complex on the southwest corner of Division and Wells in Old Town. The seller was a group including Seattle firm Security Properties, Crane Construction and four Chicago churches. Zoning's already prepped for demolition and a new property including as many as 1,500 units (apartment or condo) and 34k SF of retail. Keeping with the site's mixed-income history, 20% of the units must be affordable (zoning code calls for just 10%). Ground could break this year though completion would be years away.

2. Montrose & Clarendon

CohnReznick (Field) MCHI
JDL Development

A venture including JDL Development, Saxony Capital and Harlem Irving Cos picked up the Uptown Maryville site in 2012 after the neighborhood struck down Sedgwick Properties' $350M redevelopment plan. Initial plans for the $220M project called for about 776 units across two buildings, including 72k SF of retail and parking for 557 cars. Since then the design has been in flux due to community concerns around traffic, TIF money (the developer requested $32M and the city offered just $14M) and the demolition of Cuneo Memorial Hospital. Right now things are on hold, but that doesn't mean JDL isn't keeping busy.

3. Elburn Station Phase 1

Wikipedia

This year Shodeen is expected to start 710-unit Phase 1 of Elburn Station, adjacent to the Kane County village's Metra station (pictured). Approved by the village board in 2013, the 484-acre Elburn Station will be a 20-year project and its mix of 2,215 homes, townhouses, apartments and senior housing (including up to 200k SF of commercial space) could double Elburn's population. The project's first key hurdle is the Anderson Road extension, including a bridge over the train tracks. It's expected to be finished later this year, then Shodeen can close on the sale. Phase 1 completion is slated for 2018.

4. Block 37

Solomon Cordwell Buenz

CIM Group broke ground in October on a 34-story, 690-unit residential tower on top of five-story Block 37 in the Loop (the area's biggest multifamily project in recent memory). Slated for a 2016 completion, the tower will include a fifth-floor amenity deck featuring an outdoor pool, rooftop spa and fitness center. In addition to building up, CIM Group has made some huge moves building out retail tenancy within the 275k SF mall. Big tenant coups include celeb chef Richard Sandoval's Latinicity food hall, a Lawless family ground-floor restaurant, an 11-screen AMC theater and a new Dave & Buster's.

5. 545 N McClurg Ct

Solomon Cordwell Buenz

Golub and Boston-based GID broke ground in October on a 45-story, 490-unit high-rise in Streeterville, near Golub's Streeter Place Apartments and its eight-foot statue of George Wellington “Cap” Streeter. The project also includes a 290-car parking garage, 5,200 SF of retail, and amenity decks on the ninth floor (fitness center, spa, lounge) and rooftop (sun deck with pool, party room). The project's construction financing comes from The PrivateBank, The Union Labor Life Insurance Co and Prudential Mortgage Capital Co. Golub's 2,400-unit residential pipeline, consisting of nine new projects, also includes the acquisition and reno of 280-unit Chestnut Place with USAA.

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Darwin (OriginofExcellence) CHI
Arthur Rogers (Drive)
Leasepipeline (WatchHere) CHI
Missner (Healthcare3)
Perforation

Ken Griffin Buys $13M Condo

The state's richest man ($5.6B, says Forbes), Citadel founder and CEO Ken Griffin, paid $13.3M for a full-floor condo at the Waldorf Astoria (pictured), DNAinfo reports. The seller? CME CEO James McNulty, who paid $6.9M for the unit in 2010.

While Chinese investors have helped push high-end downtown condo demand and pricing back up, Griffin's own purchases are the ones breaking records. He paid $15M for a penthouse in Park Tower in 2012 (Chicago's most expensive condo sale ever at the time) after separating from his wife, Anne Dias Griffin, and is currently selling his three-bedroom on Michigan Avenue.

Google
Perforation

New Year's Resolutions: Mike Demetriou

Baum Realty Group COO Mike Demetriou says his firm resolves to: grow the team by adding retail brokers across its tenant rep, leasing, investment sales and national real estate service divisions (and in turn expand marquee client events); increase revenues at least 33% in each division; perform 300-plus hours of community service; and “be responsible for bringing Chicago the coolest retail transactions in 2015.” Pictured: As a company holiday gift, Baum commissioned figurines that highlight the personalities and behavioral quirks of team members.

The 606

Looking at the market, Mike's wish list includes more adaptive reuse and smarter renovation of existing retail stock; a continued low cap-rate environment; more international retail opening in Chicago; and the smashing success of the 606 Trail (pictured). Personally, he plans to exercise more, listen more and finally break 80 on the golf course.

What are your resolutions at work and at home? Tell marissa.oberlander@bisnow.com!

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NAI Hiffman (Reserve-DeerPark) CHI
Bisnow (Niche-White) HALF
Perforation

Windy City RE Makes $10M on Suburban Sale

Windy City RE sold 344-unit Mount Prospect Greens for $33M to Cleveland-based APM Management, Crain's Chicago Business reports. The local value-add apartment investor began buying up the 14-building complex (from five different owners) in 2010 and spent about $22M on acquisitions and unit rehabs. (Read Bisnow's profile of principal Milan Rubenstein here.)

With low-hanging foreclosures now long gone, Windy City RE has to think creatively and invest heavily in construction to achieve the same returns, Milan told Bisnow. Investments range from well-trafficked suburban spots to adaptive reuse in the South Loop, and company investors saw 54% returns last year, he says.

Bisnow Media
Perforation

Romeoville and Joliet -
Romeo and Juliet?

Here's a fun one. Romeoville and Joliet may be neighbors, but WBEZ explores the possibility that they were originally named after the Bard's star-crossed lovers. The exhaustive theories considered: a typo, some old-world nepotism and even the names' appeal as an early PR stunt to sell land. It makes you wonder what goes into the naming of buildings and neighborhoods these days, and whether or not a little more romance or drama could help push rents and pricing.

Frank Dicksee
Perforation
Tell Us

Happy New Year, everyone! marissa.oberlander@bisnow.com