Chicago Salt Shed Developers Plan Next Outdoor Concert Venue

The team behind Chicago’s Salt Shed is looking to turn up the volume on the North Branch.

Blue Star Properties, led by developer Craig Golden, is under contract to buy a 5-acre parcel at 1401 North Magnolia Avenue with plans for an outdoor entertainment venue that could host up to 15,000 people for concerts and festivals, Crain’s reported.

Golden told the outlet the project is in early planning stages and would expand the Salt Shed’s live-event space north along the river between Blackhawk and Le Moyne streets.

The vacant site sits just north of the former Morton Salt warehouse that Blue Star and its partners — including hospitality firm 16” on Center and developer R2 — converted into one of the city’s hottest music destinations in 2022.

Preliminary renderings show a permanent stage at the northern end of the property, surrounded by a large open lawn and bordered by landscaped park space where part of Blackhawk Street now runs. The concept calls for an “open-air destination” that could accommodate events too large for the Salt Shed’s 5,500-person outdoor limit.

Golden, who co-founded Sterling Bay before launching Blue Star in 2008, estimates the expansion would cost between $60 million and $70 million including land acquisition, infrastructure and construction.

The property is being sold by a Labkon family venture that once operated the General Iron scrap metal plant nearby. Colliers’ Mike Senner is marketing the site.

Significant challenges remain. The riverfront parcel needs major upgrades — new seawalls, water and sewer lines — that could add to the bill. Golden hasn’t ruled out seeking public subsidies such as tax-increment financing but said the project’s feasibility is still being evaluated.

If built, the venue could host 30 to 40 shows each summer and offer space for neighborhood street fests or a winter skating rink. The expansion would also cement the North Branch Industrial Corridor’s shift from factories to festivals, part of a broader post-industrial makeover that began after the city eased zoning restrictions along the river in 2017.

“It’s a natural addition to what we do,” Golden said.

— Eric Weilbacher