CHICAGO-A joint venture between Vermillion Development Inc. and JFJ Development, building a mixed-use project in the Hyde Park neighborhood near the University of Chicago, has received a boost by Los Angeles-based Canyon-Johnson Urban Funds joining the development team. The first phase is expected to cost more than $106 million.
The venture, named Harper Court Partners LLC, plans to build a 150,000-square-foot office building, as well as a Hyatt Hotel and a three story, 75,000-square-foot retail building. A second phase plans a 425-unit apartment building. The properties replace a failed 300,000-square-foot retail center.
The university has agreed to lease the entire office building. LA Fitness will anchor the retail portion. Smart Hotels, based in Beachwood, OH, has reportedly purchased the rights to build the 130-room hotel. The 3-acre site for the project, with a completion expected in 2013, is at the corner of 53rd Street and South Lake Park Avenue.
Rich Holly, managing director for Canyon, said in a statement that his firm got involved because of the high credit tenants that have already committed. “The neighborhood drew our interest because of its high barriers to entry and limited availability of retail space,” he said.
Citi Community Capital reportedly provided a $65 million in construction financing for the project. Canyon-Johnson is reportedly throwing in $16 million. The project will also benefit from $20 million in tax-increment financing.
Canyon-Johnson focuses on redevelopments across the country. The company most recently joined with McCaffery Interests this past summer in the purchase of the failed Roosevelt Collection on the South Side, with the developers saying they believe tenants can be found for the mostly vacant 400,000-square-foot retail portion.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
