Three Mixed-Use Towers Planned for Chicago's Fulton Market

NY-based developer Vista Property is planning to build three mixed-use towers in Chicago’s Fulton Market district.

The Gensler-designed towers planned for the intersection of West Kinzie and North Morgan could encompass as many as 1,500 apartment units. According to a report in Urbanize Chicago, the three towers—to be built on lots at 370, 400 and 401 North Morgan St.—would replace the Fox Deluxe building, which will be demolished.

Two historic buildings will be preserved by the project, including the 32K SF Morgan Manufacturing building at 401 North Morgan and a 24K SF brick building at 413 North Carpenter St.

The first phase of the project will include two towers, a 450-foot-tall building at 400 North Morgan that will have 478 apartments and 7K SF of ground-floor retail; and a 360-foot-tall building with 529 residential units and 10K SF of retail.

The developers are still deciding whether the third tower, planned for 401 North Morgan, will be an office building or include up to 550 more apartment units, according to reports.

Earlier this year, Vista proposed to develop a 15-story boutique office building at 640 West Randolph Street in the West Loop, one of several projects the New York developer has in the works in the Windy City.

The Chicago CBD reached its highest level of quarterly absorption since the onset of the pandemic, closing the third quarter with 371,492 SF, which was the third highest CBD absorption level in the nation in Q3, according to JLL’s latest market report.

The total lease volume in Chicago’s CBD surpassed full-year 2021 and 2020 levels but remained 62% below pre-pandemic standards. Demand for office space remained relatively high with 7.7M SF of current active space requirements.

Sublease availability continues to grow in Chicago, reaching new heights after ending the quarter with 6.8MSF of total availability.

Fueled by new development office space in the West Loop and Fulton Market, YTD net absorption levels achieved positive levels for the first time since the onset of the pandemic.

“New development and high-quality Class A offices that are well located continue to outperform the rest of the CBD as tenants remain bullish on the ability to attract new talent and get employees back into the office with exciting buildings in well located neighborhoods,” JLL’s market report said.

“In fact, since the onset of the pandemic new office buildings have accounted for over 4M SF of positive absorption, which has been offset by the severely under-performing Class B & C market, the report said.