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Root, Root, Root For The Home Developer

Chicago
Root, Root, Root For The Home Developer
We've watched as out-of-town developers planted their flag in Chicago and the Midwest. So it's nice to see home-grown Magellan Development Group (which helped transform Chicago’s Millennium Park area into a residential neighborhood) assert itself. It broke ground Monday on a $100M apartment tower in downtown Minneapolis. And it's just the beginning.
 
Magellan Co-CEO Jim Loewenberg
Magellan started construction Monday on the 354-unit luxury tower in Minneapolis’ Loring Park neighborhood, slated for occupancy in summer ’14. (To be clear, other high-rises have been built downtown, so this isn't a pioneering move.) Magellan co-CEO Jim Loewenberg (above) tells us the company hopes to expand elsewhere in the urban Midwest; places like Kansas City, Nashville, and St. Louis. While Magellan will continue to work here (it's planning a $150M multifamily high-rise at Wolf Point), Jim says there is a limit to how much can be built in Chicago. To him, Minneapolis was a logical first step in this new growth trajectory. Magellan got to know the area in ’05 when it considered a condo development there.
 
Reznick (CohnDebut) MCHI
Magellan's 12369 Spruce Place, Minneapolis
Source: Crystal CG
The 36-story tower at 1369 Spruce Place is one block from the famed Minneapolis skywalk. The design by Loewenberg Architects (Jim is a busy guy) features a boat-shaped building with a curved glass curtain wall exterior and condo-quality interior finishes like granite countertops. Jim estimates that a two-bedroom will go for about $2,500/month, or 18% less than a similar apartment in downtown Chicago. Magellan will seek LEED Silver. The building is financed by BMO Harris Bank, INDURE Fund managed by National Real Estate Advisors, RBS and ULLICO.
 
Leopardo Intext
Magellan's 500-apartment tower at Wolf Point
Source: Crystal CG
On Chicago's North Side, Jim’s team is planning a 500-apartment tower at Wolf Point, being developed with the Kennedy family and Hines. He expects the team to present a proposal to the city council next month. Also, Magellan will open the 519-apartment Coast at Lakeshore East (345 E Wacker Dr) in February. It’s planning two more towers for the complex, which is 97% occupied and has no plans to lower rents.