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CHICAGO-Fifield Cos., based here, is starting construction this month on a total of 857 apartment units in two towers, at 555 W. Kinzie and 365 N. Jefferson, as part of its K Station development. The project will have a total of 2,400 units when completed in the area bordered by Kinzie, Clinton, Halsted and Wayman streets and is expected to have a total value of $750 million, Cavenaugh says. The two towers are being developed in a joint partnership with Pacific Life Insurance Co., headquartered in Newport Beach, CA.

Fifield is betting on the continuing strength of the rental market by constructing the two towers at the same time, says Rick Cavenaugh, president of Fifield. "We are proceeding with two buildings at once, which is a pretty big play in the market place," Cavenaugh says. "The apartment market is strong now. We do not see it getting any weaker." The buildings are expected to be complete in 2009 when there should be "good demand and very little new product coming online," he says. By constructing both towers at the same time, Fifield will save money on construction costs and, with two buildings, Fifield can offer more amenities to residents, Cavenaugh says.

One of the towers will be 41 stories with the other tower 37 stories. The towers will have a total of 334 studio units, 385 one-bedroom units, 116 two-bedroom units and 22 three-bedroom penthouse units. The units will range in size from about 573 sf for studios to as large as 1,400 sf for the penthouses, Cavenaugh says. The rental rate will likely be about $275 per sf, Cavenaugh tells GlobeSt.com. Both towers will be on top of a 700-car parking garage.