Madison Realty Capital Lists Site of Failed Chicago High Rise

Madison Realty Capital is ready to get a troubled River North development site once eyed for a 60-story tower off its books after seizing it through foreclosure.

The New York-based lender put the 12,400-square-foot site at 42-46 East Superior Street up for sale with JLL, marking a potential fresh start after years of failed ambitions and legal battles, Crain’s reported. JLL’s Dan Reynolds is leading the marketing efforts for Madison Realty Capital.

The property was previously controlled by developers Jeffrey Laytin and Jason Wei Ding, who in 2017 proposed a hotel and condominium skyscraper. However, the project faced immediate challenges, including rejection from 42nd Ward Alderman Brendan Reilly, opposition from preservationists and resistance from local business tenants.

Since then, the site has been redrawn into 2nd Ward Alderman Brian Hopkins’ district, and he hasn’t commented on the type of project that could gain support from him and constituents.

Complicating matters further, the developers’ firm, Symmetry Property Development, are entangled in an ugly, federal securities fraud lawsuit filed by Chinese investors who had contributed tens of millions of dollars to the project through the EB-5 visa program.

Madison initiated foreclosure proceedings in 2019 and assumed ownership last year. The firm has declined to comment on its plans for the listing.

While the property boasts a zoning classification that permits dense, high-rise development without affordable housing mandates, today’s real estate market presents significant hurdles. Elevated interest rates, high construction costs, and general economic uncertainty have made financing large-scale projects increasingly difficult.

Additionally, any redevelopment faces design constraints. The site includes buildings from the 1870s and 1880s within a Chicago Landmark District, meaning their facades are protected from demolition. Any new structure would need to integrate the historic fronts or be built on the adjacent vacant lot.

Preservation Chicago’s executive director Ward Miller suggested that the site may be better suited for a smaller-scale project.

Meanwhile, an adjacent property at 50 East Superior Street owned by Chicago-based developer Golub & Company, which holds a vacant seven-story office building, is also up for sale, potentially broadening redevelopment opportunities in the area.