The developers behind a proposed apartment building in the near south side’s Motor Row neighborhood are seeking new investors or an exit plan.
A venture led by Fern Hill Company listed 2328 South Michigan Avenue. CBRE marketing materials promote the property as a joint venture opportunity or a shovel-ready site for a buyer with approvals for up to 256 multifamily units. The listing also notes the development site is located within a federally designated Opportunity Zone.
The venture led by Fern Hill bought the site for $6.3 million in January 2020 and originally proposed a hotel for the property, which is close to the McCormick Place Convention Center.
But when the pandemic pummeled the hospitality industry shortly after, Fern Hill, along with Decennial Group and Rebel Hospitality, pivoted to a 256-unit mixed-use multifamily project designed by Eckenhoff Saunders.
The project made it through all of the city’s planning and zoning reviews and was approved by City Council last August. It’s not clear why the venture listed the property for sale. A new $4.4 million loan issued by Republic Bank of Chicago to Rebel Hospitality was recorded in February.
Representatives of Fern Hill and Decennial as well as brokers for the listing did not return requests for comment. CBRE’s Tom Svoboba and Domenic Soltero are representing the seller.
Meanwhile, Fern Hill recently got City Council approval for a 349-unit apartment tower in Old Town after a lengthy revision process spurred by nearby residents’ complaints. The original plans included about 500 units.
If any developer picks up Fern Hill’s Motor Row project where it was left off, they will be eligible for benefits from the federal government’s Opportunity Zone program and the city of Chicago’s Connected Communities ordinance.
The Opportunity Zone program allows investors to defer capital gains taxes if they park those profits in a fund that pours money into areas designated as distressed. But it’s undergoing revisions via President Donald Trump’s “big, beautiful bill.”
At the city level, the Fern Hill venture’s proposal was one of the first developments to receive approval for higher-than-typical density through the Connected Communities Ordinance. The ordinance allows such exceptions for projects located close to transit lines.