Lennar’s Quarterra Lists Chicago South Loop Development Site

Quarterra is bailing on its plans for a South Loop high-rise before starting construction.

The multifamily arm of national homebuilder Lennar listed its site at 410 South Wabash Avenue, where it once aimed to build a 25-story, 344-unit rental tower, according to a marketing brochure cited by Crain’s. CBRE broker Tom Svoboda is leading the marketing property.

The 27,400-square-foot parcel, near the Harold Washington Library, is offered without a list price. Lennar bought the site in 2019 for roughly $18.3 million and has already spent about $2 million prepping it for construction, CBRE said. Neither Lennar nor Quarterra returned the outlet’s requests for comment on the listing.

The listing comes as Chicago’s downtown apartment pipeline is on track to hit its lowest delivery volume in nearly three decades by the end of this year, despite high demand among renters.

Developers are facing stubborn headwinds: high borrowing costs, escalating construction expenses and institutional investors pulling back from the city.

The scarcity of new supply could work in favor of those who can still get deals done.

Class A downtown rents climbed 6.4 percent year over year in the second quarter, according to Integra Realty Resources, reflecting strong demand and limited competition.

The Quarterra site’s DX-16 zoning — the city’s densest — allows up to 399 market-rate units with no affordable housing requirement, since developments that don’t need City Council zoning approval aren’t subject to Chicago’s 20 percent affordability mandate.

The Lennar affiliate sold a 5,200-unit portfolio to KKR last summer for about $2.1 billion and has been shopping other holdings since late 2023, when Lennar executives said they were exploring offloading the company’s 11,000-unit apartment portfolio. Quarterra also sold properties in River North and Oak Park last year.

The South Loop site — zoned for residential, hotel, office, medical or retail use — offers potential skyline and lake views and proximity to Grant Park. The area has seen renewed investor interest, with DAC Developments and Melrose Ascension Capital recently landing financing for a nearby tower at 626 South Wabash and plans advancing for a Chicago Fire FC stadium a few blocks south.

— Eric Weilbacher