Development drain? More local firms seek projects outside Chicago

Property tax increases and the push for more affordable housing are among reasons leading developers like Sterling Bay and Magellan into other markets

Jan.January 02, 2020 01:00 PM
Property tax increases and other factors are encouraging hometown developers to seek projects in markets outside of Chicago (Credit: iStock)

Property tax increases and other factors are encouraging hometown developers to seek projects in markets outside of Chicago (Credit: iStock)

Some prominent Chicago developers are setting their sights and sites on other markets in 2020, concerned over rising property taxes and the push for more affordable housing.

Firms like Magellan Development and Sterling Bay are pursuing investments in places like Los Angeles, Miami, Atlanta, Dever, Austin, Dallas and Nashville, according to the Chicago Tribune.

Lincoln Yards developer Sterling Bay is working on projects in Miami and in Portland, Oregon.

Developers cited Chicago’s affordable housing requirements, the push for rent control and Mayor Lori Lightfoot’s plan to reform tax increment financing among the reasons for their eyeing other cities, the Tribune reported.

Cook County Assessor Fritz Kaegi has also boosted the assessed value on properties in Chicago suburbs, and assessments for Chicago are expected in 2021.

Big developers often have projects in different cities, but a pullback in investment in Chicago could affect home values and the employment rate, among other things.

“We love Chicago but are super nervous about the headwinds Chicago faces,” Magellan CEO David Carlins told the Tribune. The firm is building Vista Tower, set to be the city’s third-tallest skyscraper. [Tribune] — Brianna Kelly

Related Articles

Wolf Point East at 313 W. Wolf Point Plaza and Nema Chicago at 1210 South Indiana Avenue (Credit: Hines, Nema Chicago)

Over 10K new apartments could flood Downtown Chicago by 2022. But there’s a catch

From left: CEO and founder of CA Ventures Thomas Scott, CEOs of WeWork Sebastian Gunningham and Artie Minson, and a rendering of the building

WeWork has troubles, but it also has a new location in River North

Johnson Research Group president Ann Moroney and a rendering of Lincoln Yards

TIF consultant who created “city’s report” on Lincoln Yards was actually hired by Sterling Bay

Trump International Hotel & Tower and Donald Trump (Credit: Trump and Getty Images)

Trump Tower tax appeal is under investigation

LG Development CEO Brian Goldberg and 1143 West Lake Street (Credit: LG Development and Google Maps) 

LG Development sets sights on 400-unit resi project in Fulton Market

W. P. Carey Inc. CEO Jason E. Fox, Pritzker Realty Group founder and Chairman Penny Pritzker, 150 N. Clinton St. (Credit: Google Maps)

WP Carey and Pritzker Realty make big moves in West Loop

Northwestern Mutual CEO John Schlifske, Morguard CEO Rai Sahi and the Marquee at Block 37 apartments (Credit: iStock)

Northwestern Mutual revealed as lender of massive Loop resi tower buyout

Provident Hospital and Interim CEO of Cook County Health Debra Carey (Credit: Cook County Health)

Cook County Health’s new $240M hospital is on hold