Pilsen affordable housing development slammed as gentrification play, South Side beachfront property marketed to multifamily developers: Daily digest

A daily roundup of Chicago real estate news, deals and more for August 19, 2019

TRD CHICAGO /
Aug.August 19, 2019 05:00 PM

Every day, The Real Deal rounds up Chicago’s biggest real estate news. We update this page at 10 a.m. and 5 p.m. PT. Please send any tips or deals to [email protected]

This page was last updated at 5 p.m. CST.

 

Chicago contractors see windfall from city’s development boom. General contracting firms have been cleared to build over 9 million square feet in the last year. The Real Deal’s first ranking of general contractors in Chicago examines how the industry is handling the development frenzy while dealing with increased competition from larger competitors. [TRD]

 

Pilsen affordable housing project gets cold reception from neighbors. The Resurrection Project and Skender Construction have revealed plans for a $20 million, 45-unit complex that would be entirely affordable, but neighbors aren’t happy. Developers say the project will help residents being displaced, but residents worry the project could accelerate gentrification. [Block Club]

 

Beachfront property marketed as luxury redevelopment opportunity. Three lots that back up to Rainbow Beach in the South Shore have hit the market, with the seller hoping to cash in on the multifamily craze sweeping Hyde Park. The property, listed for $2.1 million, is already zoned to handle 40 units without a variance. [Crain’s]

 

Chicago storage startup going nationwide. Doorage Storage has taken its valet storage service nationwide, allowing for the shipping of storage containers anywhere in the U.S. The local company, which launched in 2017, said it is expanding as more of its customers begin to leave Illinois. [TRD]

 

Riverside and Howard Hughes lure yet another law firm to 110 North Wacker. The joint venture has inked at least three law firms to its 55-story office project rising in the West Loop. This time, Jones Day agreed to take four floors of the building, which is now nearly 70 percent leased more than a year from its delivery date. [TRD]

 

Uber confirms it will be Old Post Office’s anchor tenant. Speaking of major leases, Uber confirmed Monday that it will take 463,000 square feet at 601W Companies Old Post Office project. It’s just the latest in a string of high-profile leases at the redevelopment project, including Walgreens and Ferrara Candy. [TRD]

 

Chicago real estate firm raises $1B for next fund. Locally based Harrison Street has raised $1.3 billion for its seventh domestic real estate fund, eclipsing its original target total by over $300 million. The firm now has $4 billion to spend on storage, education and health care facilities. [Crain’s]

 

President Trump is feeling nostalgic for quantitative easing. In a tweet, Trump called for a 1 percent cut on interest rates and said the Federal Reserve should restart its crisis-era money-printing program. The Fed cut rates this month, which for real estate could mean lower borrowing rates. [CNBC]

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The condo building at 227 East Walton Street

The condo building at 227 East Walton Street

LA investor wants to turn Gold Coast condo into a hotel. The 13-story condominium is already owned by real estate investor Jerry Wise, and now he’s looking for a zoning change to convert the building into a boutique. It’s a new twist on the condo deconversion play, as hotel rooms remain nearly as in-demand as Downtown apartments. [Crain’s]

 

Developer sues village after zoning request denied. A joint venture of local developers is suing Huntley, after trustees for the town rejected a rezoning request to turn a former outlet mall site into three speculative warehouses. The village wants a development that would employ more people, but the developer says a consumer-facing project would not work in the area. [Daily Herald]

 

Chicago airport slot machines could be a big money maker. While onerous city and state taxes might make a Downtown casino unrealistic, the city could stand to take in a sizable chunk of change from airport slot machines. A gaming analytics firm said 500 slots at major transit hubs could pull in $37 million for the city. [Sun-Times]

 
Softbank CEO Masayoshi Son

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank, the biggest backer of real estate startups, will lend billions to its employees to invest in its second Vision Fund. The company plans to loan its workers as much as $20 billion to buy stakes in the venture-capital fund, according to the Wall Street Journal. CEO Masayoshi Son could account for up to $15 billion of it. The unusual move would double SoftBank’s exposure to a startup economy that has started to show signs of weakness, especially when it comes to initial public offerings. [WSJ]

 
Donald Trump (Credit: Getty Images)

Donald Trump (Credit: Getty Images)

Trump is blaming warning signs of a recession on a conspiracy. President Donald Trump claims it’s the result of a conspiracy of organizations hoping to see him lose reelection. These include Federal Reserve chair Jerome Powell, who he has accused of purposefully acting against him, other countries that he says are trying to harm America’s economic interests and the news media. So far, real estate has held its own in the stock market amid broader economic concerns. [NYT]


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