A development site in the West Loop that’s zoned for up to 362 multifamily units is hitting the market during a historic supply drought.
But it’s not just available space that developers are looking for. It’s lower interest rates, lower construction costs, willing lenders and a more predictable property tax environment.
If the West Loop site sells, it will be because the appeal of the property has overcome all the other headwinds developers are facing in the city.
Located at 309 South Green Street, the listing consists of a parking lot and an industrial, loft-style office. With access to Fulton Market directly north and the Loop directly east, the site could benefit from demand for housing from young professionals. It is being marketed by Cushman & Wakefield’s Susan Tjanksen and Anna Lovell; the seller hasn’t been identified.
Fewer than 300 units are slated for delivery this year, a historically low figure for the market, Integra Realty Resources found. It’s been difficult to get apartment projects off the ground, but those that do get started will benefit from the city’s strong rent growth.
Downtown Chicago’s luxury apartment rents rose 2.56 percent year-over-year in the fourth quarter, reaching $3.60 per square foot, Integra found. Rents in general are expected to grow 4 percent this year.
Just north of the listing, Fulton Market is seeing some of the only major multifamily developments taking off.
In May, Cedar Street scored a discount on a Fulton Market property, setting the stage for a 300-unit apartment project. The Chicago-based firm paid $6.5 million for the former Leslie Hindman Auctioneers property at 1332 and 1338 West Lake Street.
The two connected buildings span roughly 36,000 square feet on just over half an acre at the northeast corner of Lake and Ada streets. Hindman listed it for sale in mid-2020 with an $11 million asking price.
An asking price isn’t included in the 309 South Green listing but it will likely sell for a significant markup. The property has been held in a trust since the 1990s when it sold for just $375,000.