$270M NewCity Set for Summer Start

CHICAGO-Construction is expected to begin this summer on the one-million-sf mixed-use development at the site of the former New City YMCA, at the corner of Halsted Street and Clybourn Avenue. A joint venture between Structured Development LLC, based here, and Commonfund Realty Inc., based in Wilton, CT, is developing the NewCity project. The development is expected to cost $270 million, says Jeffrey Berta, director of program management for Structured Development.

Roundy’s Supermarkets Inc., based in Milwaukee, has a signed a lease for 80,000 sf and will anchor the retail. The term of the lease is 15 years. Roundy’s is expected to open “early to mid-2010,” Berta says. The grocery store chain has 153 stores in Wisconsin and Minnesota. The development will have approximately 440,000 sf of retail space, Berta says. Only about 20% of the space is currently leased, but the venture is in talks with a fitness center, a couple of restaurants and a “couple of national soft good retailers,” he tells GlobeSt.com. “Unfortunately, we cannot announce any particular names at this time,” he says. The asking lease rate for the retail is between $50 per sf and $60 per sf triple net for ground floor space and $35 per sf triple net for second floor space, Berta says. RKF Retail Property Advisors, based in New York City, and Chicago-based Mid-America Real Estate Group, are the brokers for the development.