With less than a week to go, Illinois Real Estate Journal is excited to host the Metro-Chicago Apartment Summit next Tuesday, March 10th, at 7am at Germania Place. Before we get to the freshly brewed coffee and always enlightening panels, with the help of Kiser Institutional Group‘s Managing Director, Todd Stofflet, we’ve highlighted 10 must-see multifamily projects that ‘ll be coming online in 2015 and beyond! Lets take a look:
New City 199 units Developed by Structured Development Scheduled Opening: September 2015
Although New City will be delivered this later this year, and in stages (multifamily first, then retail), it is a rather significant development because of the location and size. The project was originally conceived in 2007 when ‘lifestyle’ centers were very popular. Original plans called for a large condo building (484 units) and a smaller retail component. The project stalled during the recession and plans were changed to better accommodate the evolution of the area. The new plan will complement the surrounding area’s booming retail corridor with a movie theater, bowling, Dick’s Sporting Goods, Mariano’s Fresh Market, and several new restaurants and will give the western Lincoln Park residents an option for an entertainment destination, which is lacking as you head west. Developers are expecting units to rent for $3.00-$3.15psf, a significant jump from nearby SoNo East which was delivered in 2012 and is averaging $2.70psf.
Block 37 694 units Developed by CIM Delivery: 2016
Block 37 will be the Loop’s largest apartment development with 694 units. It will also be downtown’s largest project since Alta in 2010 at 848 units. The tower will help fulfill the city’s long-term vision for this area of downtown, which includes residential and retail to accompany the strong office market. Block 37 will compete with newly opened OneEleven and 73 E. Lake. There is an influx of luxury apartments in the Loop (111, 73, RCT, 215, proposed Oriental Theater apartments by John Murphy) which will drastically change this sub-market in downtown. These assets are attractive to renters that want to be close to work. Neighborhood amenities (shopping, entertainment, etc.) are still lacking in the loop sub-market.
Lake & Halsted (171 N. Halsted) 227 units Developed by a JV between Focus, Atlantic and Shapack Partners Delivery: Summer 2016
This Booth Hansen designed asset recently broke ground. It will bridge a gap between the booming areas of Fulton/Randolph District and Kinzie Station. The development has a unique architecture as compared to what is in the neighborhood now which is mainly adaptive re-use happening with vintage buildings in the area. The project is a planned 29 story development with approximately 10,000 square feet of retail on the first floor. Shapack has been busy in the West Loop with other developments including retail, office, restaurant and most notably the SoHo House.
Wolf Point West 507 units Developed by a JV between Kennedy, Magellan and Hines Delivery 2016
Currently under construction, and part of a 3-building development on the land north of the confluence of the Chicago River, Wolf Point is one of the largest developments taking place downtown. When completed Wolf Point will recreate the skyline of Chicago and fill a void on the north side of the river. At 493 ft. tall, it will be the tallest of the apartment buildings currently under construction. Expect Wolf Point West to compete with the other ultra-luxury buildings in River North and the Loop.
545 McClurg 490 units Developed by a JV between Golub and GID Delivery July 2016
545 McClurg is located in Streeterville, a few blocks from Lake Michigan, The Loop, and the Magnificent Mile. 545 is being built on one acre of land with 45 residential stories, and a seven level parking garage. According to Golub, the unit mix will consist of 12% studios, 8% convertibles, 59% one bedroom units, 20% two bedroom units, and 1% three bedroom units, with an average overall unit size of 830 square feet. The property will feature an amenity package that will include a rooftop pool deck and club room on the 45th floor, with sweeping views of Lake Michigan and The Loop, as well as a 9th floor amenity level with fitness center, spa, community room, business center, game room, media lounge and outdoor garden terrace. The building will also include 5,200 square feet of ground floor retail space at the corner of Grand and N. McClurg. 545 McClurg will join recent other recent additions to the neighborhood including 500 N. Lakeshore and North Water Apartments.
Howard Johnson Site (The Hensley) 298 units Developed by Magellan and MAC Properties
Magellan and Mac are replacing the old Howard Johnson Hotel with a 38-story, 298-unit, high-rise that will include first floor retail and a ‘pocket park’ along Wells. One of two developments Magellan and Mac are starting in area, The Hensley will be the first completed. The other development, 167 W. Erie, located on the former site of Gino’s East will add an additional 450 units. These two assets will add 750 units to River North within a one-block radius.
NWC Clark & Division 390 units Developed by Fifield
Replacing a current Jewel supermarket, Fifield will create a new flagship store and add 390 units to the site. Construction is scheduled to begin this summer. This transit-oriented development is located adjacent to the Clark and Division red line stop (which is undergoing significant station upgrades), multiple bus lines, and the Wells and Clark Street bike lanes. Parking is enclosed above the Jewel-Osco store for customers, residents and neighborhood use. The rental development will feature studios through three-beds and is aiming for LEED certification with a green roof and recycled construction materials. The proposal also includes more than $1 million in neighborhood improvements. This asset will be a welcome addition to area and further bridge the gap between Gold Coast, River North and Old Town.
9th and State 397 units Developed by Golub and CIM
The second development currently under construction for Golub, 9th and State will deliver sometime in 2016. Designed by Solomon Cordwell Buenz, the 440-foot residential tower will include 397 apartments ranging from studios to three-bedroom units, three levels of a semi-enclosed parking garage accommodating 248 cars, and 7,800 square feet of ground-level retail space. On-site amenities are set to include a rooftop terrace and events room on the top floor, an outdoor swimming pool and sundeck on the fifth floor, as well as a fitness center, media center and bicycling facilities. Designed to LEED specifications, 1001 S. State will feature a green roof area and sustainable roof materials. One of a couple major new developments slated for the South Loop, 9th and State will compete with 1000 S. Clark, and the yet to be determined third tower at Roosevelt Collection.
1000 S. Clark 469 units Developed by JV between JDL and iStar Under construction
Expecting a delivery late in 2015, 1000 South Clark will provide residents with unobstructed views of downtown Chicago and Lake Michigan. Taking advantage of its large land site, 1000 South Clark will offer resort style living, featuring five residential lounges, an indoor pool, basketball court, racquetball court, and a 7,000 square foot spa and fitness center. The tower will stand at 29 stories tall, has a motor court in front and is not planning any first floor retail. Adding to the already busy Clark Ave. corridor, 1000 S. Clark will add an additional 469 units to a sub-market with over 2000 units.
Kiser Institutional Group’s Todd Stofflet also discussed with the Illinois Real Estate Journal, what all of these new units will do for the Chicago market in 2015 and beyond.
“Developers and investors alike right now are looking at the amount of units that are coming online this year and into 2016, and they are very comfortable and bullish about these lease ups and getting those assets stabilized,” Stofflet said. “What will be interesting is looking at where the majority of units are coming online.”
“If you look at the Loop there are some interesting things coming out,” Stofflet noted. “There are seven assets that are either in construction, or in some form of development phase—whether it be planning, permitting, or financing. So that’s a lot of assets, especially for the Loop where you don’t normally see a significant amount of residential, as it tends to be a lot more office.”
Stofflet also pointed out the discussion about how developers believe that people want to be close to work, how there’s a good market there for being within the Loop, and building neighborhood amenities around it.
“That includes retail, grocery stores, restaurants, and those sorts of things,” he said. “I think the Loop is an interesting dynamic right now to the market because it’s not a place historically we have seen with a significant amount of multifamily development, and there is a huge amount of money being invested into the Loop over the next couple of years to create more of a residential district.”
“Obviously we’re seeing a lot of work in the West Loop, and that’s not surprising with Google moving there,” Stofflet said. “Also, with Sterling Bay’s huge influx of capital into that market. It tends to be the next place we see people going after River North. So to see nine assets in some form of planning or development right now is not surprising at all. I think those assets will be well received, and lease up well.”
Stofflet noted that are a couple of assets coming out in the South Loop, and there have been a couple assets delivered in the area the past two years.
“There are 2,000 plus units there now,” he said. “In addition, there is probably another 1,000 units in some form of development or construction. That coupled with some of the student housing, as well as a very high level of condominiums. I think people will be looking to the South Loop to make sure that continues to be a stable and strong environment for renters. When you have companies like Golub that are making the investment, and AMLI, obviously they believe strongly in the market.”
Stofflet said that he thinks River North, of all the locations, has the largest amount of units coming out of the ground.
“Large buildings, and a lot of them, are in development,” he said. “That along with the existing product in River North. I would expect that in 2016 and beyond we will start to see some concessions in that market as people are trying to lease up units. A lot of product will be coming out at the same time, so I believe there will be specials and renter movement among these assets.”
The goal for any developer, according to Stofflet, is not to be the last one out of the block because they tend to be the one having the hardest time with lease-up. “I think we’ll see a race to get the shovels in the ground, get the cranes up, and start leasing.”
Impact on Chicago
Stofflet also noted that there are projects that will have more of an impact on Chicago.
“Wolf Point will transform the way the northern side of the Chicago River looks,” he said. “It’s going to be an exceptional project, and New City is the same way for the Clybourn Corridor. Fifield’s deal for the Jewel site is also one of those. So it’s not that we’re just adding units, we’re recreating neighborhoods right now. That’s a really great thing as we start to see rents pushing three dollars and fifty cents a foot for core Downtown.”
“These developers are looking at some of these next neighborhoods—whether it be the West Loop, Clybourn Corridor, or where ever else—for development opportunities where the rent number doesn’t necessarily have to be the top of the market for the deal to work, and also allow for more affordable living as it relates to new construction product in core, downtown Chicago. So, right now, it’s a great time in multifamily in Chicago.”