A historic lumberyard on Chicago’s Goose Island is up for grabs, casting doubt on a proposed mass timber building that had been in the works for years.
The 2.1-acre property at 1017 West Division Street, formerly home to the Ciral family’s Big Bay Lumber business, is for sale, CoStar reported. CBRE’s Tom Svoboda and Phillip Golding are marketing the property, though an asking price has not been disclosed.
The Ciral family had collaborated with Hines, a Houston-based developer, for the past seven years to transform the site into a six-story, mass timber office building.
The project was to be part of Hines’ T3 series, a line of sustainable buildings constructed using timber, transit-friendly designs and cutting-edge technology. Similar T3 buildings have already been erected in Minneapolis, Toronto, Denver and Austin.
However, Hines has struggled to secure an anchor tenant for the Goose Island project, a challenge compounded by the economy, rising construction costs and the lasting effects of the pandemic on office space demand.
“In collaboration with the landowner, we continue to evaluate all opportunities as well as pursue prospects in order to develop T3 Goose Island,” Hines’ Chicago Managing Director Brian Atkinson said.
The Ciral’s decision to list the former lumber yard comes at a time of significant change for Goose Island, which is undergoing a dramatic transformation from an industrial area to a mixed-use neighborhood.
Major projects are set to reshape the area.
Onni Group intends to bring population with a mixed-use complex featuring 2,650 residential units. Bally’s could bring the entertainment with a casino complex on the 30-acre site of the Chicago Tribune’s former Freedom Center printing facility.
Earlier this year, candy giant Mars, the owner of Wrigley gum, brought jobs, opening a 42,000-square-foot $42 million research and development hub on Goose Island.
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