A pair of planned high rises are set to join downtown's Chicago's seemingly inexhaustible apartment tower boom, which is due to add 3,000 new units to the market this year and 5,000 in 2016.
A venture of Chicago developers Ryan Cos. U.S. And Lincoln Property Co. indicated last week it is prepared to begin construction on a 31-story luxury tower after securing an $88 million construction loan and investment from equity partner Daiwa House Group, an Osaka, Japan-based investment and development firm. Terms of the financing agreement were not disclosed.
The developers, who held a ceremonial groundbreaking on July 24, are siting the 371-unit structure on a 41,000-sq-ft parcel in Chicago's Goal Coast neighborhood, on the corner of Clark and Chestnut streets. The project, named 833 North Clark Street Apartments, is due open in early 2017.
Meantime, joint venture developers Mac Management Co. and Magellan Development Group, both of Chicago, are proceeding with a 34-story, 298-unit apartment in Chicago's River North neighborhood, on LaSalle Street. Crews recently demolished a mid-century Howard Johnson's motel that occupied the site. Last week, the city issued the project's foundation permit.
In December, Magellan Development Group announced it was joint-venturing with Beijing, China-based Wanda Group to construct an 89-story residential structure that will stand as Chicago's third tallest. The same month, the city's planning commission approved plans by developer Related Midwest, Chicago, to construct a 67-story residential tower just blocks away in the city's Streeterville neighborhood.
Industry economists attribute the boom and similar occurrences in Milwaukee and Cleveland to increasing numbers of millennials who wish to rent rather than purchase in order to maintain professional mobility. They also indicate millennials are increasingly attracted to cities with close proximity to dining, entertainment, work and transit, such as Chicago.