The project, which replaces a former Chicago Housing Authority warehouse, vacant bowling alley and two storefronts, was recently endorsed by the plan commission. While a Walgreens is taking a 14,820-sf building in the 800 block of West 115th Street, Aldi will operate a store out of 16,101 sf in the 11500 block of South Halsted Street. Another 28,600-sf, multi-tenant building is slated for the west side of the 6.6-acre site, along a railroad right of way. In addition to Aldi and Walgreens, other tenants have signed letters of intent for 16,000 sf.

"After discussions with a number of retailers, we have finally found partners eager to invest in this community and spark the growth that is necessary for a healthy economy," says Preferred Development executive vice president Thomas Morabito. His company acquired the site in 2004 for $2.3 million.

Although it is less than a block from a Jewel-Osco, Morabito's retail project is within two miles from a 172-unit single-family and townhouse development on the former Chicago Bridge & Iron Co. site at 105th Street and Vincennes Avenue. Prices will range from $230,000 to $426,000. The city is supporting the development with $11.6 million in tax increment financing.