Central Station Developers Weigh Options for $3B Project
The developers who pioneered the South Loop's transformation into a residential market have another development they want to make a reality, but they're looking for someone to put some skin in the game. A lot of skin.
Central Station developer Gerald Fogelson and partner Forest City Enterprises want to develop Gateway, a $3B mixed-use project on land they own in the South Loop, west of Soldier Field. Gateway would encompass 3,000 homes and a 500-room hotel, within walking distance of the Museum Campus and the city's planned entertainment district for McCormick Place.
Fogelson and Forest City are weighing three options for Gateway: sell the developing rights; bring in a partner; or develop Gateway themselves. Fogelson would rather find a partner, given the struggles he had with the 14M SF Central Station project. Completed right before the condo market burst, Fogelson and Forest City lost three towers, including One Museum Park West, to Related Midwest in 2012. Related repositioned the unsold condos as apartments, jump-starting the current apartment boom.
Condo resale prices have rebounded from their post-bust lows, and Fogelson hopes the lessons learned from Central Station will carry over with Gateway.