Developers propose 288-unit West Loop rental tower

Chicago apartment market has been on upswing

Chicago /
Jun.June 22, 2021 05:34 PM
 DAV Developments and Melrose Ascension Capital’s proposed 19-story apartment complex at 1217 W. Washington Boulevard (Melrose)

DAV Developments and Melrose Ascension Capital’s proposed 19-story apartment complex at 1217 W. Washington Boulevard (Melrose)

The Chicago apartment market’s growth is accelerating.

The latest sign of improvement — and optimism for the future — is a plan by DAC Developments and Melrose Ascension Capital to build a 288-unit rental complex in the West Loop, Crain’s reported.

The 19-story project would rise at 1217 West Washington Boulevard, near Fulton Market, with units up to 20 percent cheaper than the average in the neighborhood. Studio units would start at $1,650 a month, and the complex would include 4,500 square feet of ground-floor retail and 110 parking spaces, according to Melrose Ascension’s website.

Melrose founder and CEO Nick Melrose. (Melrose Ascension Capital)

Melrose founder and CEO Nick Melrose. (Melrose Ascension Capital)

The duo pegs the nearly 300,000-square-foot development at $100 million, the report noted. It would use the air rights from a nearby vacant lot that it intends to buy from Peppercorn Capital. That property has been on the market for nearly two years, and was listed at $10 million.

The plan also includes allowing for up to 154 hotel units at the complex, according to the report, which would serve as short-term rentals.

DAC Developments’ CEO is Daniel Rezko, whose father is disgraced political fixer Tony Rezko.

As demand for apartments picks up again citywide, investor and developer activity has followed. Two big apartment towers listed this month, each eyeing about $100 million.

Russland Capital Group is trying to unload the larger of the pair, 1407 on Michigan, a 199-unit building in the South Loop. And in River North, UBS Realty Investors listed its 171-unit building Bernardin, at 747 North Wabash Ave. In late April, a 548-unit rental tower in Lakeshore East also hit the market. PNC Realty Investors, which oversees the Shoreham for owner AFL-CIO Building Investment Trust, hired CBRE to sell the building at 400 East South Water Street.

Slightly ahead of the curve is Pacific Reach Properties, which in February proposed plans to build a two-tower, 1,050-unit apartment complex in the West Loop. It would be the largest project of its kind in three decades.

[Crain’s] — Alexi Friedman 


Related Articles

arrow_forward_ios
Chicago Bears quarterback Andy Dalton (Getty)
New Chicago Bears quarterback Andy Dalton buys $2.5M home
New Chicago Bears quarterback Andy Dalton buys $2.5M home
A talisman for Cubs pitchers, Lakeview home hits market
A talisman for Cubs pitchers, Lakeview home hits market
A talisman for Cubs pitchers, Lakeview home hits market
Scottie Pippen and the Highland Park mansion (Getty, Berkshire Hathaway)
Scottie Pippen scores buyer for Highland Park manse
Scottie Pippen scores buyer for Highland Park manse
Natalie Hamrick (@properties)
@properties hires Christie’s exec to take franchise program into luxury market
@properties hires Christie’s exec to take franchise program into luxury market
Chicago, suburbs lags nation in new home construction: Census
Chicago, suburbs trail nation in new home construction: Census
Chicago, suburbs trail nation in new home construction: Census
5001 S Greenwood Ave (Realtor, iStock)
Archdiocese sells Kenwood mansion for almost $1M under original asking
Archdiocese sells Kenwood mansion for almost $1M under original asking
840 N. Lake Shore Drive and Bruce White (White Lodging, Jameson Sotheby's)
Bruce White’s Gold Coast penthouse sale is priciest in downtown in 2 years
Bruce White’s Gold Coast penthouse sale is priciest in downtown in 2 years
@properties' co-founder Thad Wong says Chicago's home prices are "very rational." (Getty, @Properties)
Chicago homes prices rise but still trail major metros
Chicago homes prices rise but still trail major metros
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...