Local developer makes $33M hotel play, Lucien Lagrange unveils latest Gold Coast condo design: Daily digest

A daily round up of Chicago real estate news, deals and more for October 2, 2019.

Every day, The Real Deal rounds up Chicago’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page throughout the day, starting at 10 a.m. Please send any tips or deals to tips@therealdeal.com.

This page was last updated at 4:30 p.m. CT

 

The Building Group, led by developer Jim Stoller, is hoping to move forward on plans to transform the Lorali Hotel SRO into a mixed-use apartment building. The group said they gave payouts to low- and moderate-income tenants as they left the now-vacant building to help them find new housing. The Committee on Zoning, Landmarks, and Building Standards is scheduled to look at the proposal Oct. 15. [TRD]

 

Local developer Phoenix Development Partners bought the building that was once the City Colleges of Chicago headquarters for $32.7 million this week. They plan to turn the 14-story building, located on 226 W. Jackson Blvd., into a 349-room hotel. It is the latest purchase for developers who hope to profit off the boom in the southwest area of the Loop. [Crain’s]

 

In Missouri, St. Louis’ industrial market had a historic quarter. The industrial real estate vacancy rate was the lowest it has ever been, at 5.3 percent. There was 6.5 million-square feet under construction, the most there has ever been in one quarter. [REJournals]

 

The Bank of America tower at 110 N. Wacker Dr. will reach its full height of 815 feet and 55-stories this month, a landmark event in the city’s current construction boom. It is the tallest skyscraper to be built since 1990. [Tribune]

 

Architect Lucien Lagrange unveiled his design for a 34-story Gold Coast condo tower on Tuesday night. Developers Nahla and Lagrange Properties hope to build the 90-unit project, which needs the approval of the city and Ald. Brian Hopkins to move forward. Lagrange described his design as a “slender, modern interpretation of classical architecture.” [Curbed]

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Ninety to 95 percent of people remain in their homes during a renovation. While this may make life easier for homeowners, contractors say it’s a pain. In fact, it cost Chicago-area contractor Chris Donatelli of Donatelli Builders, around $1,875 a month on a $700,000 renovation. Some contractors across the country have decided to put their foot down. [WSJ]

 

Ald. Jim Gardiner (45th ward) railed at Mayor Lori Lighfoot for giving former Ald. John Arena a six-figure job at the Department of Planning and Development, calling the appointment “politics as usual.” Among Gardiner’s critiques of Arena is that he accepted $48,000 in campaign contributions from powerful developers, including Charles Cui who was charged with bribing Ald. Ed Burke this year. Lightfoot struck back at Arena and doubled-down on her appointment saying that Arena was the most qualified candidate. [Sun-Times]

 

Nine Forever 21 stores across Chicago are set to close before the year ends as the company attempts to recover after filing for bankruptcy last week. The company owes $21 million in rent to real estate companies including Simon Property Group, Brookfield Property REIT, Macerich, Westfield and Vornado Realty Trust. [TRD]

 

Crate & Barrel announced it will open a warehouse fulfillment center in Romeoville, amidst a national industrial real estate boom. Ohio-based developer Pizutti will build the 646,400-square-foot project in Pinnacle Business Center near Weber Road and Interstate 55. It is expected to cost $70 million and create about 200 jobs. [Crain’s]

 

Former chief of staff for urban planning and Sun-Times architecture critic Lee Bey wrote a book about the architecture of Chicago’s South Side, which will hit stands Oct. 15. The book, “Southern Exposure: The Overlooked Architecture of Chicago’s South Side,” documents the history and significance of 60 South Side buildings. [Block Club]

 

Chicago will invest $2.7 million in the 2020 census to go towards outreach and technology aimed at ensuring the city’s numbers are accurate. An estimated 48 percent of Chicagoans are part of “hard-to-count” communities and accurate census numbers are essential in obtaining federal funding for the city, Mayor Lori Lightfoot stated in her announcement. [Curbed]