CHICAGO-The Kennedy family has renewed a massive three-building project at Wolf Point on the Chicago River downtown, just north of the West Loop. The Kennedys, along with three investors including Hines, Magellan Development Group and an unnamed overseas entity, proposed at a community meeting Tuesday night a plan for two office buildings and an apartment tower that would cost more than $1 billion.
The family sold the nearby Merchandise Mart to Vornado Realty Trust some time ago, but kept its hold on the 4-acre parcel at the junction of the north, south and east branches of the Chicago River. There have many development proposals for the historic property, known as the location of the city’s first bar and hotel, and one of the city’s signature locations as depicted in municipal logos.
Tuesday night, Kennedy Enterprises joined Hines and Magellan in a public meeting at the nearby Holiday Inn for an unveiling of the plan, hosted by local 42nd Ward Ald. Brendan Reilly. The three-phased project includes a 950-foot-tall office building, a 750-foot-tall office building and a 525-foot-tall apartment tower, totaling almost 3.7 million square feet. Also planned are a new public park, enhancements to the river walk area and a parking garage. The design team includes Pelli Clarke Pelli Architects, bKL Architecture and Wolff Landscaping Architecture.
The plan is far from starting – there are a few changes that will start going through the city’s planning approval system, including an amendment to an existing planned development zoning. Greg Van Schaack, senior managing director of Hines’ Chicago office, tells GlobeSt.com that the plans will be submitted to the city today. “The housing and planning department will have some questions and clarifications, and we heard some good suggestions at the Tuesday meeting,” he says. One potential roadblock is protests from condo owners at Residences at RiverBend, at 333 N. Canal St., who may have river views blocked by the new towers.
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In a somewhat unusual twist, the joint venture has said it will not ask for public incentives, subsidies or tax increment financing for Wolf Point. Tenant interest is unclear, though just two weeks ago Hines also renewed plans to build River Point, a $300 million office tower at 444 W. Lake St. with Montreal-based Ivanhoe Cambridge. It’s believed there are a number of large-block office tenants looking for a new building to anchor in the city.
“We’re going to lease up River Point first, then concentrate on Wolf Point offices,” Van Schaack says. Completion of the Wolf Point office towers won’t be at least until 2018. The venture will instead start as soon as possible on the apartment tower, which will have about 500 units that rent for more than $2,000 per month, with opening planned in 2014.
In a statement, Chris Kennedy, chairman of the family’s investment firm, said the project is a major investment in the city and its future. “The project demonstrates the growing moementum of the economic recovery here in Chicago,” he said.
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