A JV led by Guggenheim Real Estate revealed designs for one of two new multifamily towers it wants to build in the Illinois Medical District as part of a multi-phased residential project that could exceed $300M when completed. The plans call for a 19-story, 254-unit tower at 801 South Ashland Ave., according to Chicago Architecture Blog.
Guggenheim and partners Focus Development Group and Atlantic Realty Partners bought the 410-unit Illinois Medical District Apartments last year, in a $111M deal brokered by KIG. The JV wants to rehab the existing apartments and build two 250-unit towers as part of a $300M redevelopment. Investor interest in the Illinois Medical District has increased the past couple of years with projects like Higgins Development's IMD Gateway and a $700M redevelopment of the Cook County Hospital site in the pipeline.
KIG managing partner Todd Stofflet told Bisnow last May that investors are willing to take a chance on value-add opportunities in up-and-coming submarkets like the Illinois Medical District because they can achieve higher yields. The Guggenheim JV's renderings include plans for 28K SF of ground-level retail and would allow medical professionals and students ease of access to work, school and Taylor Street nightlife.
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