A new apartment tower off Mag Mile in Streeterville is planned
Downtown apartment construction has rebounded over the past year as rents and occupancies have recovered from steep declines in the early months of the pandemic. But most of the action these days is in the West Loop, particularly the Fulton Market District.
Streeterville, a hotspot for apartment development over the past decade, has been quiet in recent years. The most recently completed project, One Bennett Park at 514 N. Peshtigo Court, opened in 2019. Mavrek aims to innovate its development by the end of the year, putting it on track for a completion date in early 2024.
One of the reasons development in Streeterville has slowed: After a flurry of construction over the past two decades – first condominiums, then apartments – developers have gobbled up most of the best high-rise development sites neighborhood. Only three major multi-family projects are underway in Streeterville: a two-tower, 1,200-unit development at 1400 N. Lake Shore Drive, the former site of the Chicago Spire, and a planned high-rise just east of the Tribune Tower which is said to include 439 apartments, according to Integra Realty Resources, a consultancy and valuation firm.
Mavrek partnered with GW Properties, a Chicago-based retail developer, and Luxury Living Chicago Realty, a Chicago-based apartment marketing and consulting firm, for his project at 535 N. St. Clair, currently the site of a three-storey. Parking Garage. The property is just east of the Shops at North Bridge mall and down the street from the InterContinental Chicago hotel and a Whole Foods Market.
“With Whole Foods just steps from the development site and easy access to Lake Shore Drive and Michigan Avenue, this is a prime location well-suited to retail, office and multi-family,” said Adam Friedberg, partner of Mavrek, in the press release.
Developers do not need City Council approval for their proposal as their project is permitted under the property’s current zoning, Ald. Brendan Reilly, 42nd, who represents the area, wrote in a ballot to voters. But they still need to secure equity financing and a construction loan for the development.
The project will include many small apartments, with studios ranging from 492 to 706 square feet accounting for half of its 248 units, according to Slideshow provided by Reilly’s office. Units of one or two bedrooms will complete the offer. Most apartments will have balconies. The building will feature a coworking lounge, fitness center, and outdoor rooftop pool and deck.
Since the start of the pandemic, “we have seen a shift in demand from tenants asking for more one-bedroom and den spaces and paying premiums for units with private outdoor space,” said the founder and CEO of Luxury Living, Aaron Galvin, in the press release.
Although Luxury Living has worked on several high-rise apartment developments in downtown Chicago, the project represents a breakthrough for Mavrek. Founded in 2010, the company has developed low-rise, multi-family projects in Chicago neighborhoods, but nothing vertical in the central business district. The company’s largest apartment project to date is a 171-unit building in Cleveland, according to their website.
GW Properties, meanwhile, is primarily a retail specialist, with recent acquisitions including Church Street Plaza, a shopping center in downtown Evanston.