GlobeSt.com UPDATE: Optimism Reigns at Gateway Groundbreaking

PALATINE, IL-A recession has pushed up office and retail vacancy rates in most submarkets, new construction has virtually stopped in its tracks and none of the space beyond the developer’s 30,000 sf has been pre-leased. Nonetheless, there was an express train of optimism Thursday as ground was broken on the Gateway Center project in this northwest suburb, where officials have long sought to replace a “blighted embarrassment” at the village’s Metra commuter rail stop.

The $86-million project, which in addition to three-building, 100,000-sf office and 18,000-sf retail on the northeast side of the tracks also includes 280 multifamily units on the southwest side, is the latest suburban Downtown redevelopment effort in the market.

Why the optimism? One reason is the project, being developed by Wheeling-based Joseph Freed & Associates with construction of the office and retail component by Skokie-based The Alter Group Ltd., is an integral piece of a Downtown suburban redevelopment, which more often than not have proven to be home runs in the Chicago market. Freed and Alter brought a strong track record in suburban Downtown makeovers, neighboring Arlington Heights and Wheaton among them, to the table more than a year ago.