Related Midwest Lists Finished Penthouse for $12M

Another prominent Chicago developer is throwing in the towel on raw luxury space.

Six years after Related Midwest planned to sell a trio of unfinished penthouses at One Bennett Park for upwards of $14 million apiece, the firm is finally building them out to attract buyers. The pivot closely mirrors a recent strategy shift by JDL Development at its One Chicago residential skyscraper.

In both cases, the developers recognized a hard truth about the post-pandemic luxury market: Today’s ultra-wealthy buyers demand turnkey real estate, not a multi-year construction headache.

“I take absolute responsibility,” Related Midwest head Curt Bailey told Crain’s regarding the languishing units. Bailey admitted he “fell on his sword” and is now listing the tower’s 64th-floor penthouse, fully finished, for just under $12.3 million.

That pricing is a noticeable haircut from the $16.8 million the 8,400-square-foot Streeterville spread was originally slated to sell for in 2019, and that earlier figure was before a buyer would have spent millions on their own buildout.

Back in 2019, raw space was in vogue downtown, fueled by high-profile empty-shell sales at No. 9 Walton and Trump Tower. The outlet reported that Bailey banked on deep-pocketed downsizers wanting a personalized project. But soaring construction costs and a sluggish downtown condo market changed the calculus.

Now, with the 64th floor scheduled to be completed in August, the developer has brought in Soucie Horner Design Collective to finish the five-bedroom unit with 12-foot ceilings, double terraces and a double-island walnut kitchen, according to the publication. Bailey confirmed plans to eventually finish the tower’s top two penthouses as well.

Jameson Sotheby’s International Realty brokers Brad Brondyke and Tim Salm have the listing. They noted that the turnaround time for raw buildouts is a dealbreaker in the current market.

Brondyke said prospective buyers have been asking for completed buildouts for a long time. When it comes to high-end downtown condos, Salm added, buyers “want it tomorrow. Not in 18 months.”

— Sam Lounsberry