(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles)
CHICAGO-As the apartment market continues to tighten Downtown, New York City-based Related Cos. has agreed to take over the failed Waterview project at 111 W. Wacker Dr. The company said it will shrink the former plans for a 90-story condo-hotel, now currently sitting as a quarter-finished shell, and will instead build a roughly 60-story apartment tower.
Curt Bailey, president of Related's Midwest division, tells GlobeSt.com that his firm is partnering with Clark Wacker LLC, the group of creditors that recovered the property after Teng & Associates dropped the $200 million project in 2008. Construction of the 500-unit tower will start in first quarter 2012, and should take two years. “There’s a lot of people who have taken a crack at it, but we closed on it, and we’ll finish the job,” Bailey says.
He says the proximity to a plethora of jobs at nearby office buildings to the south as well as closeness to the blocks of restaurants and nightlife to the north should guarantee demand. It’s reported that Related is using proceeds from a $1 billion fund for the site, but Bailey says he could not talk about the deal specifics.
The apartment market in Chicago is going very well, with all units delivered in the past year now full, Bailey says. “We’re starting to see rents cranked up and concessions going away,” he says. “It’s difficult to know how long this will stay, but we think there’s significant potential for Chicago. If you look at similar cities such as Boston, San Francisco and even New York City, comparatively Chicago has a dearth of rental product, I think it’s time it caught up.”
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