Gary Pachucki’s IBT Group came out on top of a contest for a large city-owned development site in Chicago’s McKinley Park area with a $121 million mixed-use plan, beating out two competing proposals named as finalists after officials requested proposals last year.
The city’s Department of Planning & Development selected a plan by Chicago-based IBT, which was founded by Pachucki, to redevelop a 6.5-acre site in the South Side neighborhood, including an empty 575,000-square-foot historic warehouse and adjacent property, at 1717-1769 West Pershing Road, Crain’s reported.
Chicago sought projects to transform the site into a more active mixed-use space that would mark a step in revitalizing the Central Manufacturing District complex. The became one of the first industrial parks in the country when it was built by the U.S. Army in 2018. It’s on the National Register of Historic Places.
The selected plan envisions several key components for the site:
Mixed-Income Apartments: IBT plans to convert a section of the warehouse into an interior courtyard, creating space for 120 mixed-income apartments ranging from studios to three-bedroom units.
Office and Lab Space: Another portion of the site will be dedicated to a more than 200,000-square-foot “innovative office hub and technology incubator,” according to the city. This space is expected to attract science-focused companies and serve as a more affordable alternative to similar lab developments in other parts of the city.
Grocery Store: The one-story structure on 1717 West Pershing will be redeveloped into a 50,000-square-foot grocery store, providing essential services to the local community.
The other two finalists for the site were LG Pershing Sound Studios and Quartermaster Outpost Studio, and both developers included video production studios as central aspects of their proposals, and less housing.
The next steps for the project involve a public review process and finding financing. IBT Group intends to seek up to $25 million in tax-increment financing assistance, which would require City Council approval. The project’s estimated cost of $121 million also includes the purchase of the properties from the city.
However, higher interest rates since the project’s initial proposal may pose financial challenges for developers. Pachucki expressed hope for a more favorable financial environment in the coming year.
If the project proceeds, the residential component will be developed first to generate demand for the adjacent grocery store. Construction is likely to span a couple of years, with occupancy not expected until 2026.
— Sam Lounsberry
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Development
Chicago
Finalists selected for Pershing warehouse redevelopment project
Development
Chicago
Here’s the development plans competing for Chicago’s McKinley Park site