CHICAGO-Organized by the now-defunct Chicago, Milwaukee, St. Paul & Pacific Railroad, CMC Heartland Partners LP has a longer term perspective than most with a 7.3-acre site, allowing it to weather what some consider to be a glut of multifamily development in the Downtown market. Heartland Partners vice president Susan Roussos notes the land has been owned by the railroad, and subsequently her company, since 1847.
“We're very patient money,” Roussos quips.
Within the decade, though, Heartland Partners could add 1,694 multifamily units, 360 of them in a 25-story condominium tower and the rest in three buildings of 34 or 35 floors, in a four-block area along W. Kinzie Street between Clinton and Halsted streets. Not only will the $300-million development be within walking distance of the Loop, the project recommended for approval Thursday by the city's plan commission also could appeal to reverse commuters as it is closer yet to two major Metra commuter rail terminals.
The development will rise next to Heartland's Kinzie Station, which includes a nearly-sold 163-unit condominium tower and 24 townhouses, with another multifamily tower under construction switched last year to an apartment building.
First to be built in the latest project, however will be a 55,000-sf grocery store. While Roussos tells GlobeSt.com she has a letter of intent from a developer with a national grocery chain, 27th Ward Alderman Walter Burnett Jr. says the store will be a Jewel. “It's something the community has been looking forward to for some time,” he adds. “It's going to bring some good jobs.”
According to Heartland Partners' last quarterly report, the REIT has a deal to sell 1.66 acres to the grocery store developer for $2 million. It also has a $5-million contract to sell another 1.82 acres for additional commercial development.
A 522-unit apartment building at the western edge of the site, which also will include ground-floor retail space, would rise within the next 18 months, Roussos tells GlobeSt.com. Future residential development would move eastward with a 25-story, 360-unit condominium tower two blocks away. The last phase would be two 35-story, 406-unit apartment towers, according to Heartland's plans.
The plan won community approval during of public meetings, Burnett notes, in part because the developer has agreed to set aside an acre for a public park. Although city council approval is expected, Burnett says he is continuing to negotiate with Heartland on one more issue – setting aside 5% of the units as affordable by city department of housing standards.
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