Chicago developer Jeff Shapack is teeing up his next project with another West Loop site.
A venture controlled by his Shapack Partners firm that built hotels in Fulton Market bought the Salvation Army’s downtown River West campus at 509 North Union Avenue for $25 million, according to SVN’s Urban Team, which represented the nonprofit seller. Crain’s reported the sale earlier, citing people familiar with the deal.
The site is adjacent to one of the three finalists for Chicago’s first casino, the Chicago Tribune’s Freedom Center printing plant, which is owned by Texas-based Tribune Media owner Nexstar. It could be redeveloped as part of a $1.74 billion bid by Bally’s that includes a casino and hotel, a 3,000-seat theater, an outdoor music venue and other amenities.
A redevelopment of either the publishing plant or the Salvation Army property next to it would be the latest transformation in the West Loop, where Shapack has concentrated on building in the Fulton Market District. He’s brought some of the city’s most successful new office developments and two hotels, the Hoxton and Soho House, to market in the former meatpacking district.
Shapack and developer CRG also won City Council approval last week for a 37-story mixed-use project at 170 N. Green St., which is set to include apartments, offices and 150 hotel rooms.
Next door, at 167 North Green, Shapack has hired JLL to market the 750,000-square-foot office building after leasing all of the office space, with bids expected to approach $550 million, Crain’s reported.
The Salvation Army closed the River West property last month and has moved some of its services to its other area locations, including 2258 North Clybourn Avenue in Lincoln Park, Crain’s reported. Shapack intends to turn the River West site into a hotel, Crain’s reported, citing people familiar with the purchase.
Shapack has 10 planned developments total in Fulton Market, totaling 2.5 million square feet of office space already developed or planned, 227 multifamily housing units and 222 hotel rooms, the firm’s website says.
[Crains] – Sam Lounsberry
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