wasnt sure were to put this--

CBS site shows 2 towers, 807 units

April 7, 2006

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters

The hangar-like headquarters of Chicago's CBS affiliate, WBBM-Channel 2, would be replaced by two residential towers under plans submitted to city zoning authorities.

Chicago-based developer Golub & Co. has turned in a proposal for buildings of almost 50 stories each at 630 N. McClurg Ct. in Streeterville. The buildings would rise from a shared base that would include offices and shops, said Lee Golub, the firm's executive vice president.

The residential part would consist of 807 rental apartments. Golub emphasized that the plans, developed with the architectural firm Solomon Cordwell Buenz, are tentative and haven't been shown to community groups.

The studio was the site of the 1960 Nixon-Kennedy debate that turned the election in Kennedy's favor.

For large-scale projects, city officials ask developers to seek community input as part of the zoning process. The Chicago Plan Commission would have to approve the project before it gets to the City Council.

"We filed with the city just to get the process going," Golub said. "There's much about this design that remains to be decided."

Golub expects the offices will be attractive to medical groups affiliated with Northwestern Memorial Hospital.

Channel 2 is moving its studios to the northeast corner of Dearborn and Washington as part of the Block 37 redevelopment. Despite construction snags at Block 37, the new CBS building is expected to be done by late 2008.

Property records show the Golub firm acquired the McClurg property from CBS Corp. for $26 million in a sale that closed last December.

"The Streeterville location offers us the best opportunity to realize our vision. . .

Magoon and Wilmott've gotten to be kidding me? Didn't they realize some streets are narrow? Obviously, they forgot to visualize that parents with SUV or fancy big cars clogging these streets to/from the Children's Hospital.

^-- huh?? That doesn't even make sense. Having the unabashed access to NWH facilities (as only a Streeterville location could provide) would be a huge benefit to children that were unfortunate enough to have to visit Children's Memorial.

As I am sure many of you have predicted, a development deal is brewing for the painted-gray block of buildings at the northwest corner of the Milwaukee-Grand-Halsted intersection. The plan reportedly is for a 145-unit condominium project. That site, located at the same intersection as a transit stop, and adjacent to at least three bus routes, seems like it should get higher density than that.

Along those lines, I think that the relatively new yellow building across the street was a missed opportunity for more density.

Just as bad, that building has plain yellow brick that makes it looks like a suburban strip mall, or perhaps a suburban condo development. I feel the same way about the yellow brick building at the southeast corner of North and Clybourn.

Public enemy number one is split-faced concrete block. Public enemy number two is plain yellow brick.

Public enemy number three is the mottled suburban beige or peach brick on the painful Pilsen and Bridgeport facade remakes. That mottled brick, which I call "Bolingbrick," after a particularly bland town, is the architectural equivalent of "acid-washed" jeans.
Mike

As I am sure many of you have predicted, a development deal is brewing for the painted-gray block of buildings at the northwest corner of the Milwaukee-Grand-Halsted intersection. The plan reportedly is for a 145-unit condominium project. That site, located at the same intersection as a transit stop, and adjacent to at least three bus routes, seems like it should get higher density than that.

Along those lines, I think that the relatively new yellow building across the street was a missed opportunity for more density.

Just as bad, that building has plain yellow brick that makes it looks like a suburban strip mall, or perhaps a suburban condo development. I feel the same way about the yellow brick building at the southeast corner of North and Clybourn.

Public enemy number one is split-faced concrete block. Public enemy number two is plain yellow brick.

Public enemy number three is the mottled suburban beige or peach brick on the painful Pilsen and Bridgeport facade remakes. That mottled brick, which I call "Bolingbrick," after a particularly bland town, is the architectural equivalent of "acid-washed" jeans.
Mike

^ Public enemy number four is all this whining.

Just be happy that the revitalization of our great city continues at a staggering rate. There are other bigger problems worth worrying about

As I am sure many of you have predicted, a development deal is brewing for the painted-gray block of buildings at the northwest corner of the Milwaukee-Grand-Halsted intersection. The plan reportedly is for a 145-unit condominium project. That site, located at the same intersection as a transit stop, and adjacent to at least three bus routes, seems like it should get higher density than that.



seems like its been ten years its been sitting around like that,
its close enough to downtown to warrant a highrise IMHO,
some of the buildings dont look to bad, i think its painted all one color so that people wont give a shit what happens to them after awhile,
they've done that to a few clumps in milwaukee as well including the sydney hih building complex,

the guy must be loaded to pay for the taxes on that site with no income going on there

^ Public enemy number four is all this whining.

Just be happy that the revitalization of our great city continues at a staggering rate. There are other bigger problems worth worrying about


ofcourse there is urbs, but to be complacent and just accept everything is also dangerous, we want a nice looking city, not just development for development sake,

i dont consider it whining, it simply is pointing out some drawbacks and poor design that shouldnt be happening, overall i think it is an exciting time for chicago, but there should be more creme de la creme buildings going up,

ofcourse there is urbs, but to be complacent and just accept everything is also dangerous, we want a nice looking city, not just development for development sake,

i dont consider it whining, it simply is pointing out some drawbacks and poor design that shouldnt be happening, overall i think it is an exciting time for chicago, but there should be more creme de la creme buildings going up,

^ I agree that not everything under construction is creme de la creme. Not everything built before WWII was creme de la creme either, I just think everybody is getting a bit touchy about the older stuff.

I'll let you know when I think Chicago is becoming a less attractive city

^ Public enemy number four is all this whining.

Just be happy that the revitalization of our great city continues at a staggering rate. There are other bigger problems worth worrying about


Give me your address. I'll send you some split-faced concrete block. Maybe you'd like to reface your building with it.

Give me your address. I'll send you some split-faced concrete block. Maybe you'd like to reface your building with it.

^ I don't mind cinderblock along the sides and rear of buildings in the least.

Everybody's nostalgic hard-on for Chicago common brick is nice, but I'm not particularly concerned about this issue

Note from the article below that Fifield Development is getting a lot of opposition from the Fulton River District Association (FRDA) about his plans.

The FRDA wants more parking spots inside Fifield's building. They seem to think that if they squeeze more parking spots inside Fifield's proposed building, then spots on the streets will remain available.

There's just one problem with that reasoning, as I have learned in part from the many of you who have posted on SSC. Specifically, there are next-to-zero spots on the streets in that area as it is. Adding parking spots into the proposed building will not noticeably preserve any spots on the street, but instead would simply increase traffic congestion in the area, an unintended consequence of their demands.

This area has great access to transit. It seems like a good example of a site that should NOT require 1:1 parking ratio.


From the Chicago Journal
3/29/2006 10:00:00 PM Email this article • Print this article
The love affair with the car has a competitor


Cityside
Alan Schachtman, senior vice president of Fifield Developers, got an earful Tuesday night from the audience of the annual Fulton River District Association Meeting, held at the Jefferson Tap, 325 N. Jefferson Street.


Fifield Developers, as you may recall, is planning to build four midrise buildings in a largely vacant area stretching south of Kinzie from Clinton to Halsted. Fifield is also developing the Left Bank Residences, a highrise rental building currently under construction at Canal and Fulton. At the meeting Schactman mentioned that Fifield had convinced the city to allow them to build 350 parking spaces for the 450 unit building, a ratio of .8 parking spaces for every unit.


That prompted several cries from the audience that the Left Bank building, along with the other four buildings planned for the area, would cause massive parking headaches in the area. But Schactman insisted that the demand for a 1:1 ration for parking spaces to condos simply isn’t there, and pointed out that residents do have other options—namely, the plethora of CTA bus lines, train lines and Metra stops in the area.

"This is the city," Schactman said. "There’s a lot of mass transit here."

Bet on a Fulton River District riverwalk, but not a canoe

Also at the Fulton River District Association Meeting Tuesday, Kathy Caisley, central region project manager for the Department of Planning and Development, reported that the city is pushing for a riverwalk in the area. While several condo buildings are planned for near the edge of the Chicago River, Caisley says the city is asking for setbacks with every condo developer that needs a planned development, and is hoping to eventually develop a thorough riverwalk. An audience member alluded to 42nd Ward. Ald. Burton Natarus’s previously expressed desire for a canoe debarking point in the area; Caisley said she would love to see that happen, but said the city would have to cough up the cash to buy the land needed to do so.




The vaulting of the Randolph Street sidewalk


The Chicago Department of Transportation reports that Randolph Street between the Kennedy Expressway and Green Street will be rebuilt starting April 3. The new vaulted sidewalk—a hollow construction usually 6-8 feet in depth and 25 feet in width—is expected to be complete by late June. In the meantime, Randolph Street will remain open to motorists and pedestrians, but parking will not be committed in the immediate vicinity around the construction site, though it will be available across the street.

—Compiled by Haydn Bush
From the Chicago Journal 03/29/06

. . .Schactman . . . pointed out that residents do have other options—namely, the plethora of CTA bus lines, train lines and Metra stops in the area.

"This is the city," Schactman said. "There’s a lot of mass transit here."


Right on! The residents living there are ridiculous in their complaints about the parking spaces. Schactman is absolutely correct in reminding them that there are alternatives namely public transit. The same people must stop thinking like suburbanites and start appreciating the uses of public transit.

Right on! The residents living there are ridiculous in their complaints about the parking spaces. Schactman is absolutely correct in reminding them that there are alternatives namely public transit. The same people must stop thinking like suburbanites and start appreciating the uses of public transit.

I just don't understand these people! Why move into the city if parking is one of your chief concerns?

Maybe you moved into the city for its vibrancy? Well, more projects=more density=more vibrancy! yay!

Maybe they're worried about visiting friends not having a place to park? Well, people are pretty smart, they'll figure out a way! yay!

http://www.wbbm780.com/pages/27117.php?

Wind Turbine Installed Atop Daley Center
John Cody Reporting

Mayor Richard Daley celebrated Earth Day a little early by announcing a Chicago Conservation Corps and unveiling a Chicago-made wind turbine to be installed 600 feet over the city atop the Daley Center.

WBBM Newsradio 780's John Cody reports Daley noted his environmental record and unveiled plans for a volunteer environmental corps, modeled on the lines of the highly effective Depression-era Civilian Conservation Corps. However, people won't live in camps akin to the CCC -- they'll live at home and volunteer time to help clean up Chicago River banks and vacant lots, plant flowers and trees in lots where possible.

Daley pointed to an innovative new wind turbine developed by a University of Illinois at Chicago professor to turn solar energy into electrical power.

Bill Becker's turbine looks like a giant plastic double helix -- think of the configuration of DNA -- rotating inside a 15-foot tall metal scaffold.

He says his new turbine works at all wind speeds, and in all directions without the need to reorient itself like a propeller turbine. He said it also doesn't kill birds as does a propeller turbine, doesn't throw off potentially lethal ice chunks and doesn't wreck the building below with vibration.

He says the four turbines might provide at most one percent of the Daley Center's electrical needs, but will definitely provide good data and a fair test of how the DNA-style wind turbine performs under constant daily use some 600-plus feet above the city streets stop the Daley Center at Randolph and Dearborn.

110 West Superior is now Opus 110
The email also states 27 floors

http://img515.imageshack.us/img515/3408/render18dh.jpg

http://www.opuschicago.com/

IMO it's a great looking building and I'm happy to see it move forward.

Any idea when these turbines are slated to be installed?

27 stories any idea on height......probably about 300-325?

http://chicagobusiness.com/cgi-bin/news.pl?id=20310

At Sony space, hunt is on for new tenants
After mulling a major revamp of the Mag Mile property that housed the former Sony Gallery, the building's owner is seeking tenants for the four-story Sony space, which has been vacant for about two years. The State of Wisconsin Investment Board opted to lease the Sony space again rather than redevelop the entire property, after negotiating new leases with current tenants Niketown and Cole-Haan, say people familiar with the matter. U.S. Equities Realty, which is representing the investment board, is asking for about $2.5 million a year from tenants for the 22,000-square-foot space at 663 N. Michigan, the people say. A U.S. Equities exec did not return calls. [Alby Gallun]

http://www.gowealthy.com/realestate/news/1068/detail.asp

Dubai hotel chain to bolster operations in the US
22-Apr-2006

Dubai-based luxury hotelier Jumeirah, intends to bolster its operations in the US as part of an ambitious global expansion reflected in its recent acquisition of Essex House, the landmark New York hotel overlooking Central Park.

The chain, renowned for its stunning sail-shaped Burj Al Arab hotel in Dubai, aims to compete with the likes of the Four Seasons, Ritz-Carlton and Mandarin Oriental by widening its worldwide portfolio of hotels from nine to 40 within five years.The US hotel industry is thriving owing to an increase in travel and little new supply. Luxury hotels are one of the most profitable sectors and high-end companies like Shangri-La, Mandarin Oriental and Hilton's Conrad brand are expanding into the US.Jumeirah has about 15 hotels currently in contract or under construction set to open by 2008 in locations such as Jordan, Dubai and Doha. The company wants to expand beyond the Middle East to the Americas, Asia and Europe.

In the Americas, the company plans to build hotels in major cities such as Los Angeles, Chicago and Boston, apart from resorts in the Caribbean and Mexico. In Europe it is eyeing cities such as Paris, London, and Rome.Most hoteliers do not want to build new hotels in the US because of escalating construction costs. Instead, they are paying record prices for coveted hotel properties and renovating them. Unlike others in the field, Jumeirah is constructing about 70 per cent of its new US hotels in order to accommodate larger rooms and have greater say over layout and design.

While this strategy to build rather than buy runs contrary to current trend, research shows that hotels are easily selling for $400,000 to $500,000 per room in key US cities. Jumeirah replaced Starwood as manager of the Essex House in January, marking its first venture in the US. Dubai Investment Group, owned by Jumeirah's parent Dubai Holdings, bought the Essex House property for about $400 million last year from Strategic Hotels & Resorts.

--------------
This is the hotel chain that brought Dubai the iconic Burj Al Arab, so they do know good architecture.

All riiiiiiiight! Building a brand-new hotel is better than buying.....

Nokia store on N. Michigan Avenue

----
http://www.techspot.com/news/21423-nokia-to-open-flagship-store-in-chicago.html

Nokia to open flagship store in Chicago
By Derek Sooman, TechSpot.com
Published: April 26, 2006, 4:05 PM EST

Nokia is set to open a flagship store in Chicago from the middle of this year, and will follow up with a New York store in the "Fifth Avenue region" before the end of the year.

The stores will sell Nokia's full North American product lines, including high-end phones like Nokia's N93, N91, N73, and N80. The N93 camcorder-phone, released today in Berlin, was not initially announced as available for the US. This black "multimedia computer" is huge for a phone, but relatively small for a high-quality camcorder that records 640-by-480, MP4-format video at 30 frames per second; takes 3.2-megapixel stills with 3X optical zoom; plays MP3s, surfs the Web, reads e-mail, and connects to Wi-Fi. It's all about how you think of it. The camcorder/camera/phone/"multimedia computer" will cost approximately $682 when it goes on sale in July, according to a Nokia press release.


This move is a departure from the traditional modes of selling for cell phone manufacturers; the vast majority of phones are sold through carriers' stores at present. The N. Michigan Avenue will take up 3,500 square feet.

^ Good news.

http://www.gowealthy.com/realestate/news/1068/detail.asp

Dubai hotel chain to bolster operations in the US
22-Apr-2006

Dubai-based luxury hotelier Jumeirah, intends to bolster its operations in the US as part of an ambitious global expansion reflected in its recent acquisition of Essex House, the landmark New York hotel overlooking Central Park.

The chain, renowned for its stunning sail-shaped Burj Al Arab hotel in Dubai, aims to compete with the likes of the Four Seasons, Ritz-Carlton and Mandarin Oriental by widening its worldwide portfolio of hotels from nine to 40 within five years.The US hotel industry is thriving owing to an increase in travel and little new supply. Luxury hotels are one of the most profitable sectors and high-end companies like Shangri-La, Mandarin Oriental and Hilton's Conrad brand are expanding into the US.Jumeirah has about 15 hotels currently in contract or under construction set to open by 2008 in locations such as Jordan, Dubai and Doha. The company wants to expand beyond the Middle East to the Americas, Asia and Europe.

In the Americas, the company plans to build hotels in major cities such as Los Angeles, Chicago and Boston, apart from resorts in the Caribbean and Mexico. In Europe it is eyeing cities such as Paris, London, and Rome.Most hoteliers do not want to build new hotels in the US because of escalating construction costs. Instead, they are paying record prices for coveted hotel properties and renovating them. Unlike others in the field, Jumeirah is constructing about 70 per cent of its new US hotels in order to accommodate larger rooms and have greater say over layout and design.

While this strategy to build rather than buy runs contrary to current trend, research shows that hotels are easily selling for $400,000 to $500,000 per room in key US cities. Jumeirah replaced Starwood as manager of the Essex House in January, marking its first venture in the US. Dubai Investment Group, owned by Jumeirah's parent Dubai Holdings, bought the Essex House property for about $400 million last year from Strategic Hotels & Resorts.

--------------
This is the hotel chain that brought Dubai the iconic Burj Al Arab, so they do know good architecture.



^^^^a new tower perhaps....maybe one to compliment TTH, WV, and hpefully Calatrava, as well as Mandarin, and Inter-continental

Hmm... I wonder where this will go? 3500 sqft is too big to be the old Sony store, perhaps it's that small shop on the east side of the Ave just south of Erie (it was like some mens shoe store or something before)

I have noticed they are putting something new in next to my building. Something is going in across from Virgin between Bandera and Gap. Not sure what it is.

That would be the space I was referring to :)

http://www.chicagotribune.com/business/chi-0604290082apr29,1,6752207.story?coll=chi-business-hed

View brightens on Mag Mile
Rents for space on shopping strip may surpass 2001 levels

By Thomas A. Corfman
Tribune staff reporter
Published April 29, 2006

After a two-year lull, rents for retail space along the Magnificent Mile seem about to take off.

The vacancy rate for smaller, specialty store space on North Michigan Avenue is virtually unchanged, at 6.8 percent, compared with a year ago, according to the annual survey by Northern Realty Group Ltd. But average annual asking rents rose nearly 50 percent, to $55.72 a square foot.

"The spike in rents is just the beginning," said Bruce Kaplan, president of the Chicago retail real estate firm, who predicts that within two years rents will exceed the 2001 level of $128.42 a square foot, the highest since Northern began the survey in 1991.

"There is real demand for space on the street, and right now almost everything of quality is maxed out," he said.

Rising rents have played a key role in Michigan Avenue's decades-long transformation from a quaint collection of local merchants catering to wealthy denizens of the Gold Coast to a bustling bazaar of national and international retailers hawking their wares to all comers.

"There's a dynamism to the street that's significant, but at the same time it has lost its Chicago character," said Peter Hanig, president of Hanig's Footwear Inc., one of the last local merchants with a Michigan Avenue storefront.

His store at 660 N. Michigan Ave., which opened in 1978, is likely to be displaced by a Ritz-Carlton condominium tower proposed in March for a site that also includes the shuttered Terra Museum of American Art.

Hard to compete

Mirroring broader changes in retailing, many independent merchants have found it difficult to compete with bigger, better-financed rivals who are more able to pay the Michigan Avenue top-dollar rents, which in recent years have topped $350 a square foot for prime storefronts.

If rents are a stiff challenge, there are also rich rewards. For example, Hanig's store has annual sales of $1,500 a square foot, he said. That's nearly three times the 2005 average for retailers on the Magnificent Mile, according to an estimate by the Greater North Michigan Avenue Association.

Hanig said he is considering moving to another location should the Ritz-Carlton project, which also would include 11,000 square feet of retail space, move forward.

Meanwhile, Chicago-based Strategic Hotel Capital Inc. in November disclosed plans for a 71-story hotel/condominium tower that would replace the nondescript north tower of the InterContinental Chicago hotel at 505 N. Michigan Ave. That project also would include about 11,000 square feet of retail space.

When Michigan Avenue's fully leased department stores are included, the vacancy rate was unchanged at 4.3 percent over the last 12 months, Northern said. The survey includes buildings on North Michigan Avenue from Oak Street to the Chicago River. Only retail space with a street entrance or escalator access to the street is included.

Troubled mall

But 56 percent of all of the vacant space on Michigan Avenue is located in a single building, Chicago Place, 700 N. Michigan Ave. The 311,000-square-foot vertical mall has been hurt by long-standing facade problems and the defection of a key upper-floor tenant.

The mall's upper-floor space has been troublesome since the building was developed in 1990. A New York investment group acquired it last year with plans for a turnaround.

Excluding Chicago Place, the overall vacancy is just 2.1 percent, and average asking rents are well over $100 a square foot, Northern says. In 2002 the total vacancy rate was just 1 percent.

Although the street's other vertical malls have been much more successful attracting tenants, the rents of those spaces are substantially lower than the rents for street-level stores. In 2004 average rents on Michigan Avenue fell to $34.83 a square foot, the lowest since 1993.

Demand for retail space, as measured by net absorption, grew at a slower pace for the second straight year. Net absorption, the annual change in the amount of leased and occupied space, is more than 4,700 square feet this year, compared with nearly 5,500 square feet in 2005, the study found.

In one of the more intriguing leases of the last 12 months, Nokia Corp. is reportedly developing a new flagship retail concept to be located in a small, single-tenant building at 545 N. Michigan Ave. The project has not yet been formally announced.

In other deals of note:

- Bank of America leased a 3,500-square-foot storefront at 500 N. Michigan Ave., giving the bank a high-profile location as it expands its Chicago-area branches.

- Linens 'n Things Inc. subleased about a third of its 42,000-square-foot, upper-floor space at 600 N. Michigan Ave. to local furniture retailer Home Element. Linens, which closed the store in 2003, now plans to reopen in the rest of the space.

And for each lease signed, there are other prospective tenants waiting in the wings, Kaplan said. The slight change in the statistical measure of absorption is partly because Michigan Avenue has little room to grow. "The reality is there are tons of people chasing very little space," he said

But 56 percent of all of the vacant space on Michigan Avenue is located in a single building, Chicago Place, 700 N. Michigan Ave. The 311,000-square-foot vertical mall has been hurt by long-standing facade problems and the defection of a key upper-floor tenant.

The mall's upper-floor space has been troublesome since the building was developed in 1990. A New York investment group acquired it last year with plans for a turnaround.

Unlike Water Tower Place, Chicago Place seems uninviting place to shop. What they need is an extreme makeover on mall layout.

I'm posting these here as well, because the Streeterville thread uaually drops back several pages and this thread is more active.

Here is the information that I have on the twin towers for the CBS site in Streeterville.

http://img321.imageshack.us/img321/8184/10sj.jpg

http://img351.imageshack.us/img351/41/21af.jpg

http://img81.imageshack.us/img81/1610/37zo1.jpg

http://img351.imageshack.us/img351/9394/46zb.jpg

http://img80.imageshack.us/img80/2691/53dr.jpg

http://img315.imageshack.us/img315/8640/69il1.jpg

http://img315.imageshack.us/img315/2662/70eu.jpg

http://img80.imageshack.us/img80/2877/89ql.jpg

Hmm just enough to keep you interested, yet not enough to even to "prejudge" its merits.

I posted this in the S'ville thread as well.

I'm concerned about how these towers are going to look in such close proximity to another set of twins (McClurg Court Towers).

INTERESTING ADGNDA FOR THIS MONTHS PLAN COMMISSION

CHICAGO PLAN COMMISSION
118 North Clark Street
Cook County Board Room, County Building
Chicago, Illinois 60602
May 19, 2006
1:00 P.M


A proposed Residential Planned Development application submitted by Lennar
Communities of Chicago, L.L.C. for the property generally located at 824 South Clark Street. The applicant has proposed the construction of up to 1,000 residential units in three high-rise buildings varying in height from 34 to 42 stories, accessory parking garages, and an approximately 0.6-acre park. (2nd Ward)

A proposed revised Site Plan for Sub-area B of Residential-Business Planned
Development No. 819, as amended, generally located at 555 West Kinzie Street. Subarea B is bounded by W. Kinzie Street, N. Desplaines Street, Metra Milwaukee District tracks, and North Jefferson Street. The Planned Development requires that any substantial revisions to the Site Plans, Landscape Plans and Elevations approved in the Planned Development be submitted to the Chicago Plan Commission for approval. The applicant, Fifield Companies, proposes 360 residential dwelling units in a 39-story building with enclosed parking for approximately 287 autos and a public park of approximately 1.09 acres. (42nd Ward)

A proposed Amendment to Residential-Business Planned Development No. 523, as amended submitted by Roosevelt Collection, L.L.C. for the property generally located at 1158 South Clark Stree. The applicant has proposed to reconfigure three of the eight sub-areas, relocate some of the proposed streets, and relocate and reduce the proposed park. The applicant also seeks site plan approval for the construction of approximately 450,000 square feet of retail space including movie theaters, approximately 300 dwelling units in two five-story buildings, and approximately 300 residential units in a 43-story building, all to be located above a 5-level parking base for approximately 1,800 autos. (2nd Ward)

A proposed Residential-Business Planned Development application submitted by Kingsdale Enterprises LLC for the property generally located at 617- 627 W. Division Street, 1145 to 1175 North Howe and 614 to 626 West Elm Street. The applicant has proposed the construction of a 25-story building to contain 240 dwelling units, retail uses and 240 non-accessory parking spaces. (27th Ward)

I'm really hoping Roosevelt Collection moves forward. Anyone who loves retail will love this development. If the stores that are on the drawings actually move in then I think alot of people will be really happy with this. Plus another 500' tower down there will be a nice addition.

Do you happen to know any particular stores that are supposed to be in this project? So far I've only heard about the movie theatre, but I hope that all these developments will create another shopping/entertainment node similar to Michigan Ave. and State St.

I'm really hoping Roosevelt Collection moves forward. Anyone who loves retail will love this development. If the stores that are on the drawings actually move in then I think alot of people will be really happy with this. Plus another 500' tower down there will be a nice addition.

^ I am truly doubtful about this project. I was hoping more connectivity would be a part of it, but this use of a cul-de-sac really disappoints. Chicago's streetgrid system is a strength, yet building a retail version of Dearborn Park will continue to sap away the potential of the south loop as a viable urban community. If this thing turns out to be a giant outdoor shopping mall it will be a huge drop in our city's standards.

I can see it now--those NIMBY fucks living in Dearborn Park getting into their cars, driving onto the Roosevelt bridge (since these bumblefucks have no other way of getting west of Clark because of their damned inward-oriented disconnected Schizo-suburban "community) and then driving down the cul-de-sac into their movie theatre to watch movies. Yippy, lets all just pretend we live in Naperville! "Mommy, mommy, can I have some ice cream?" "Sure, son, lets all pile up into our SUV and drive to the Roosevelt Collection!!"

THUMBS DOWN!

:sleepy: :sleepy: :sleepy: :sleepy:

http://www.suntimes.com/output/business/cst-fin-nokia08.html

Nokia opening flagship store on N. Michigan
May 8, 2006
BY HOWARD WOLINSKY Business Reporter

Nokia, the No. 1 cell phone maker in the world and No. 2 in the United States, in June will be planting its flag on North Michigan Avenue with North America's first "Nokia Flagship Store," in the heart of Motorola-land.

And industry analysts expect Schaumburg-based Motorola, the No. 1 phone maker in the United States and No. 2 in the world, eventually will follow suit with store wars to peddle their wares. Traditionally, carriers such as Verizon, Cingular and Sprint have sold cell phones to consumers with discount plans.

Keith Nowak, spokesman for Nokia, told the Sun-Times in an e-mail: "All we really know for sure right now is that we will be opening a Nokia Flagship Store [the first in the U.S.] on Michigan Avenue in June. I wish I could share more."

However, sources confirmed that the Nokia store will be at 545 N. Michigan, which, perhaps coincidentally, is close to Motorola's "Moto City" design center at 233 N. Michigan and Motorola Chairman Ed Zander's downtown lodgings.

Motorola declined comment on Nokia's plans and on whether it was considering opening Moto stores.

But Jane Zweig, chief executive of the Shosteck Group, a wireless industry market research firm in Wheaton, Md., said, "I wouldn't be surprised to see Motorola go down that path."

Likewise, Neil Mawston, associate director of global wireless practice for Boston-based Strategy Analytics Ltd. said, "We expect the other mega-vendors, Motorola and perhaps Samsung, to follow Nokia's lead if it proves successful. The rest of the market will struggle to copy Nokia, due to smaller marketing budgets and less resources."

He said said Nokia is copying Apple Computer, which has retail stores, including a major store at 679 N. Michigan. Zweig said, "Apple has done well with its stores. Apple creates an experience when you walk into their stores. Nokia wants to do the same."

Nokia in December opened the first of its company-owned and managed stores in Moscow's prestigious Pushkin Square district, and indicated it plans several more stores in "shopping capitals of the world." Another flagship store is planned for New York City by the end of the year.

Nokia outlined its strategy in an online ad for sales associates in Chicago: "Our new flagship store will change the face of phone retailing forever. It will be devoted to showcasing the latest products and --even more importantly -- allowing customers to use them."

The company tells would-be sales associates: "At Nokia, a phone is never just a phone. It's a camera, a palmtop, a diary, an MP3 player. Join us in our new flagship store, and you'll be putting the very latest models into people's hands. And making sure they'll never see their phone in quite the same way again."

Nokia's plan is to situate Flagship Stores "in the very best retail locations in high-traffic urban settings in major markets worldwide."

Mawston said, "One of Nokia's biggest competitive advantages is its impressive distribution network. Opening its own stores is another step to upgrading that network for affluent, high-end users who are looking increasingly for shoppertainment [shopping + entertainment] in the emerging experience economy [users want memorable in-store experiences, not just a 'visit']."

Nokia already has a Nokia Experience Center in North Bridge Mall, which displays but does not sell Nokia products. The center will be across the street from the Chicago Flagship store. Zweig said Nokia likely will close the Nokia Experience Center.

Thats good news. I walked down Mag mile a few nights ago and was
surprised by at least 3 or 4 vacant storefronts...it looks really tacky.

I just created the Emporis pages for the three buildings in this development. The planned development from city hall only has the project name listed by the address, so I used it for the project name and broke the towers down by A, B and C as listed in the PD document. These are roof heights and DO NOT INCLUDE the mechicanical penthouses, so they will increase slightly when one of the Emporis members gets to see actual blueprints.

Tower A:
(Polk and Clark SW Corner)
34 Stories 342'-8"
http://www.emporis.com/en/wm/bu/?id=265655

Tower B:
(Clark Street, Midway between Polk and 9th Street)
42 Stories 422'-4"
http://www.emporis.com/en/wm/bu/?id=265657

Tower C
(Clark Street and 9th Street NW Corner)
33 Stories 394'-4"
http://www.emporis.com/en/wm/bu/?id=265658

The three towers will sit in a C shape plan, with a central courtyard/ park along Clark Street in the center of the development. There will be a total of 1000 units and 975 parking spaces, and 1 acre of open public space. The development will run from Polk to the new 9th Street, which appears to be planned to run under the Metra Tracks and tie into the Roosevelt Collection.

:cheers:
Hey folks, The Roosevelt Collection will include everything between Polk on the north, Clark on the east, Roosevelt on the south and Wells on the west (Except for the three tower concord development between 9th and Polk and an existing parking lot and loft bulding at Polk and Wells).

This project includes the already built Target store and the proposed 'The Curve' tower.

BUT WAIT THERE IS MORE>>>

Another residential tower on the SW corner of 9th and Clark, A 44-45 story Residential tower at Wells and Taylor Streets (With a height of roughly 476' from Wells Street, its hard to read on the PD); and another 40 story tower at Polk and Financial Place. There will be some townhomes, new construction lofts and a public park in addition to the planned retail strip leading from Roosevelt Road. For a grand total of..... DRUMROLL PLEASE........4,406 dwelling units (maximum). :banana: :banana: :banana:

I can't wait until Peter Ziv of South Loop Neighbors and the Fallio Square Lofts hears about this, he will have a stroke. HA-HA Fuck you Peter, welcome to the city.

I'll try to find out more info at the Plan Commission Meeting, which has been moved to Friday the 19th, and will be held in the County Building.

ALSO, The next meeting for CUAG, Now known as Citizens for Better Planning will be this Thursday at 8pm in the Billy Goat Tavern. Come on by, have a cold beer, and chat with like minded Chicagoans. Participation in the group is as much or as little as you choose.

Wow. I think soon we're going to need a map to remember what projects and towers go where. And yeah, Peter Ziv will probably have to go on a hunger strike or some other desperate move to block this project too.

I'm really excited for this area to get developed. Long live Target and its ability to jumpstart ANY neighborhood!!!

:cheers:
Hey folks, The Roosevelt Collection will include everything between Polk on the north, Clark on the east, Roosevelt on the south and Wells on the west (Except for the three tower concord development between 9th and Polk and an existing parking lot and loft bulding at Polk and Wells).

This project includes the already built Target store and the proposed 'The Curve' tower.

BUT WAIT THERE IS MORE>>>

Another residential tower on the SW corner of 9th and Clark, A 44-45 story Residential tower at Wells and Taylor Streets (With a height of roughly 476' from Wells Street, its hard to read on the PD); and another 40 story tower at Polk and Financial Place. There will be some townhomes, new construction lofts and a public park in addition to the planned retail strip leading from Roosevelt Road. For a grand total of..... DRUMROLL PLEASE........4,406 dwelling units (maximum). :banana: :banana: :banana:

I can't wait until Peter Ziv of South Loop Neighbors and the Fallio Square Lofts hears about this, he will have a stroke. HA-HA Fuck you Peter, welcome to the city.

I'll try to find out more info at the Plan Commission Meeting, which has been moved to Friday the 19th, and will be held in the County Building.

ALSO, The next meeting for CUAG, Now known as Citizens for Better Planning will be this Thursday at 8pm in the Billy Goat Tavern. Come on by, have a cold beer, and chat with like minded Chicagoans. Participation in the group is as much or as little as you choose.

^Great news, Shawn! I may actually warm up to this, but I really wish they would do some more comprehensive planning, ie integrate it better with the streetgrid.

Either way, lock and load. I see this development as being CBP's 1st official battle

^Great news, Shawn! I may actually warm up to this, but I really wish they would do some more comprehensive planning, ie integrate it better with the streetgrid.

Either way, lock and load. I see this development as being CBP's 1st official battle

Isn't the Collection a approved PD? If this is the case, and I will talk to Shawn tonight to see if it is, than there is no battle, right?

:cheers:
Hey folks, The Roosevelt Collection will include everything between Polk on the north, Clark on the east, Roosevelt on the south and Wells on the west (Except for the three tower concord development between 9th and Polk and an existing parking lot and loft bulding at Polk and Wells).

This project includes the already built Target store and the proposed 'The Curve' tower.

BUT WAIT THERE IS MORE>>>

Another residential tower on the SW corner of 9th and Clark, A 44-45 story Residential tower at Wells and Taylor Streets (With a height of roughly 476' from Wells Street, its hard to read on the PD); and another 40 story tower at Polk and Financial Place. There will be some townhomes, new construction lofts and a public park in addition to the planned retail strip leading from Roosevelt Road. For a grand total of..... DRUMROLL PLEASE........4,406 dwelling units (maximum). :banana: :banana: :banana:

I can't wait until Peter Ziv of South Loop Neighbors and the Fallio Square Lofts hears about this, he will have a stroke. HA-HA Fuck you Peter, welcome to the city.

I thought that this was all considered part of the same development? Although AMLI controls a portion of the work along with the curvy building by D2, it was my understanding that everyone was going in together to develop the DP for this site.

And screw Peter Ziv. I saw an article about him that patronized him for his work. I also see the pest walking around the neighborhood as if he runs it and he crashed a neighborhood meeting and really irked some neighbors (including myself). I think this guy is one of the most condescending, irrational, contradicting, Nimby that this side of the loop has seen. Even some of the residents in his building at Folio Square feel he is unreasonable.

- edit

http://www.globest.com/news/551_551/chicago/145783-1.html

Food Outlet, CVS Join MetraMarket

MetraMarket, the 200,000-sf ground-level retail redevelopment being created beneath overhead commuter rail tracks, has landed a fresh food market as well as a pharmacy. Paris-based market operator Sebastien Bensidoun has signed a 15,000-sf lease to anchor the redevelopment while Providence, RI-based CVS is adding a 14,000-sf location in the new two-block retail area north of the Ogilvie Transportation Center.

“Fresh food markets have been an essential part of community life in Europe for centuries,” Bensidoun says. His market will serve a West Loop community that continues to see multifamily development. “Retail amenities for our West Loop residents are a priority, and this market is a welcome enhancement to the neighborhood,” says Fulton River District Association vice president Barbara Frankel Abrams. Adds U.S. Equities Realty chairman Robert A. Wislow, whose company oversees the development, management and leasing of the project, “A vibrant public market has always been a cornerstone of our vision for MetraMarket.”

Ogilvie Transportation Center is visited by 95,000 commuters daily, topped only by nearby Union Station. In addition, the Chicago Transit Authority’s Green Line station at Clinton Street sees 2,260 commuters a day. “With its tremendous volume of foot and auto traffic, this location is one of the most attractive opportunities we've seen since we entered the region in 2000,” says CVS Realty Co. regional director of real estate Michele Dodd.
The $46-million project is reactivating a 95-year-old building bounded by Canal, Clinton, Lake and Washington streets. Although terms of the Bensidoun and CVS deals were not disclosed, asking lease rates for MetraMarket space ranges from $35 per sf to $65 per sf. U.S. Equities Realty is looking for restaurants, from white-tablecloth to casual dining, and street retail tenants for the remaining space. Occupancy is being promised for next summer.

http://img502.imageshack.us/img502/1670/ogilvie17na.jpg
http://img502.imageshack.us/img502/4840/ogilvie1ii.jpg

http://www.wwd.com/fashion/article/106354

ON TO CHICAGO: Fur designer Dennis Basso is about to get some competition in the Chicago retail scene. Gilles Mendel plans to open a J. Mendel boutique on Michigan Avenue near Louis Vuitton. Basso opened a store on Magnificent Mile last year. Mendel said he is also eyeing locations for freestanding stores on the West Coast. He recently opened a concept shop in Moscow, a city where the demand for fur coats has driven up skin prices in recent months.

http://www.chicagosuntimes.com/output/business/cst-fin-rite19.html

Scottish Rite site at more than $50 million

May 19, 2006

BY DAVID ROEDER Business Reporter



The price for the Scottish Rite Cathedral and the city block that surrounds it has soared to more than $50 million, with two developers joining forces to emerge as the leading bidder, sources said.

Enterprise Cos. and Mesirow Stein Real Estate jointly submitted the top offer for the site, people close to the bidding process said. With boundaries of Walton, Delaware, State and Dearborn, the property is the biggest development opportunity on the Near North Side.

It's also a deal with many complications. About half the block is a parking lot, but the rest contains buildings from the late 19th century that can't be demolished under the city's rules. They are part of the landmark Washington Square District.

One of the buildings is the cathedral at 929 N. Dearborn, a former Unity Church used since 1911 by Scottish Rite, a Masonic fraternal organization that owns the block. It's a familiar sight to users of Washington Square Park and the Newberry Library, both located across the street.

Ronald Shipka, principal of Enterprise, confirmed that he formed a partnership with Mesirow Stein, headed by longtime builder Richard Stein. "We've worked very hard to put together something that will meet the needs of Scottish Rite, the alderman and the surrounding community,'' he said, while keeping details private.

The most likely scenario for the parking lot is high-rise housing. But the deal is being negotiated as rising interest rates make condominiums more expensive for developers to build and for buyers.

Also, a project there probably would require a zoning change. That could stir an affluent neighborhood into opposition with aldermanic and mayoral elections approaching next year.

"It's going to take some imaginative development strategies and tons of cooperation from the city to get this done," said an expert in the property, who's not involved in the bidding.

Sources said the block attracted 11 bids. While the amount of the Shipka-Stein offer isn't known, sources said the top prices exceeded $50 million.

The parking lot that fronts on State carries a zoning classification that limits new construction to a height of 155 feet for 200 living units. The buyer would want a contract tied to a zoning change.

droeder@suntimes.com

- edit

At last!

Commercial Real Estate News


Rental Tower Beefs Up as Start Nears

By Mark Ruda of GlobeSt.com

Wednesday, May 24, 2006 - CHICAGO-A long-awaited multifamily rental building planned for the corner of Des Plaines and Kinzie streets will be slimmer, taller and have 35 more units than originally expected. Revised plans by Fifield Cos., calling for a 350-unit, 39-story building at the southeast corner, were endorsed Friday by the plan commission.

Rents in the multifamily tower, across Kinzie Street from the Blommer Chocolate factory and part of the Kinzie Station development, are expected to exceed $2 per sf. However, 42nd Ward Alderman Burton Natarus predicts the building eventually will become condominiums. “Eight or nine years from now, it’ll be condo,” he says.

The estimated $80-million project has been in the works since 1999, when it first won city approval. Plans also were changed last year. The most recent rendition drops 4,233 sf of retail space from the plans, and the number of parking spaces is cut from 414 to 287. Meanwhile, the building’s footprint is cut in half, to about 10,000 sf, in the revision. Regardless, city officials are anxious to see construction begin, because a one-acre park is in the plans.

“We will start construction of this building, and this park, as soon as we get the permit,” says Fifield Cos. senior vice president Alan Schachtman, telling GlobeSt.com 70% of the units will be one bedrooms. “We are rarin’ to go on this project.”

Two-bedroom units will make up 20% of the mix in the building in the 600 block of W. Kinzie Street, Schachtman says, with the remaining 10% studios. The company already owns the 274-unit 180 N. Jefferson rental building, having acquired it in 2004 for $62 million. Rents there range from $1,127 per month for studios to $3,822 for three-bedroom units.

And another "at last":

Commercial Real Estate News


Avenue East Gets $69M Construction Loan

By Mark Ruda of GlobeSt.com

Friday, May 19, 2006 - CHICAGO-With pre-sales at 80%, Residential Homes of America has landed a $69-million construction loan from three participating lenders for its 133-unit Avenue East condominium tower. The Lake Forest-based developer has hired Power Construction Co. of Schaumburg to build the 27-story tower at 160 E. Illinois St.

LaSalle Bank, Bank of America and National City Bank are putting up the money for the project, which will rise near Michigan Avenue. Equibase Capital Group, LLC, a Chicago-based lender, is providing equity and mezzanine financing.

Residential Homes of America president Ann Danner says prices at Avenue East are “surprisingly reasonable.” Studios, one-, two- and three-bedroom units range from $399,900 to $949,900, with sizes ranging from 1,071 sf to 1,716 sf. In addition to 10,000 sf of ground-floor retail space, the building will include a fitness center and three-level “green” roof in addition to a sundeck. Completion is expected next year.

Located north of Tribune Tower and east of the InterContinental hotel, Avenue East is replacing an industrial building, which was sold in 2004 for $800,000, according to documents on file at the Cook County Recorder of Deeds office. Strategic Hotels & Resorts, which owns the InterContinental, is considering a condominium tower of its own.

And the beat goes on:

Condo Sales Hot While Converters Cool

By Mark Ruda of GlobeSt.com

Friday, May 19, 2006 - CHICAGO-While Downtown condominium conversions are returning to normal levels, 2006 could be a record year for new multifamily construction, according to Appraisal Research Counselors. The multifamily sages report marketing efforts have begun on 14 projects, involving 3,382 units, through the first four months of the year.
Sales also are running at a record pace, with 1,624 units going under contract or reserved during the first quarter. It is the largest number Appraisal Research Counselors has seen since it began tracking sales in 1997. “Consistently, the bulk of the sales velocity tends to fall within the $300 to $399 per sf range, along with an increasing trend toward higher prices in very well located, more luxurious buildings,” vice presidents Ron De Vries and Gail L. Lissner say in their most recent “Residential Benchmark” report. “Newly announced developments with product below $300 per sf was non-existent in the market.”

After a year that saw 4,000 rental units become condominiums in 2005, De Vries and Lissner predict conversions will return to more normal levels, which typically has meant about 1,150 units per year. So far this year, they note, no rental buildings have undergone conversion. Also, the 396 units sold in the first quarter is the slowest pace since the end of 2004. “Sales also appear to be value-driven, with buildings offering product priced below some of its competition outselling the others,” they add.

Operators of Downtown multifamily rental buildings have seen occupancy rise nearly four percentage points from the same period last year, to 95.7%. Concessions have dropped by more than half, Appraisal Research Counselors reports, while rents for class A units have cracked the $2 per sf barrier again.

http://www.suntimes.com/output/roeder/cst-fin-roeder24.html

New condo production coming to Kingsbury
May 24, 2006
BY DAVID ROEDER SUN-TIMES COLUMNIST


The investment team of former stateSen. William Marovitz and Bud Cataldo, who have been active in River North condo projects, are moving a shade west with their next big deal. It's at 660 N. Kingsbury, between Erie and Huron, where today they are starting to market a 26-story, 166-unit building.

Marovitz said the building is designed by well-known Chicago architect Lucien Lagrange, who has completed two other projects in the booming residential corridor near the old Montgomery Ward complex. The Marovitz-Cataldo venture is at the site of Ronsley Special Events, a prominent florist and production company that expects to relocate in the city.

Prices for the condos will range from about $350,000 to more than $1 million for penthouses, Marovitz said. Ronsley owner Michael Leventhal started planning the project in 2004, but Marovitz said he and Cataldo have acquired most of his interest. Rizzo Realty Group in Chicago is marketing the new building, called Park Kingsbury.

COLLEGE LIFE: Developer David Dewey and partners who own the old 59 E. Van Buren office building have opted to convert it to student housing. The rechristened Buckingham Building, a nationally registered landmark, will have 129 units, enough for around 400 students, Dewey said. He said one or two of the South Loop schools might sign a master lease for the rooms, thus reserving them for their students.

The project puts its own twist on dorm living, including an almost unheard-of amenity: in-unit laundries. Dewey said students will pay $900 to $1,100 per month. A restoration of the landmark has started, and leasing will begin in August. It is next door to the blueblood Chicago Club, and I can just see those CEOs complaining about student parties.

Last and least:

Commercial Real Estate News


McHugh Lands $112M Blackstone Renovation

By Mark Ruda of GlobeSt.com

Thursday, May 18, 2006 - CHICAGO-Denver-based Sage Hospitality Resources has hired James McHugh Construction Co. to renovate the historic Blackstone Hotel at 636 S. Michigan Ave. The $112-million project is expected to bring 330 hotel rooms to the South Loop next fall, eight years after the last guests checked out.
In the intervening years, plans were announced for a condominium conversion, which failed to materialize. Maharishi Royal Residences, LLC sold the Blackstone Hotel in December for $18 million. The hotel will reopen as a Marriott Renaissance property, with a restored lobby, ballroom and second-story restaurant overlooking Grant Park. The restaurant will be built in space that was part of the old Mayfair Theatre.

Because of its landmark status, the Blackstone Hotel project will include restoring the terra cotta facade and mansard roof. The city is committing up to $18 million in tax increment financing to Sage Hospitality Resources as an incentive.

McHugh has established itself in the hotel sector, building or renovating 4,000 rooms during the last 10 years. Its projects include the Crowne Plaza Chicago Metro, Hotel 71, Hotel Monaco and Hotel Allegro.

Commercial Real Estate News


Palmer House Owner Books $150M Makeover

By Mark Ruda of GlobeSt.com

Thursday, May 11, 2006 - CHICAGO-New York-based Thor Equities, which paid $215.4 million for the Palmer House less than a year ago, is taking the initial steps in a $150-million renovation of the landmark hotel at Monroe and Wabash streets. Although plans are expected to be unveiled by early fall, the makeover of the 1,000-room property has received an early endorsement from the city’s Commission on Chicago Landmarks.
The Monroe Street entrance will be redesigned, fire escapes on the State Street side of the hotel will be replaced with interior fire escapes and storefronts on the Monroe and State street sides will be renovated. An indoor parking garage also is being created. One major interior renovation is creating a 4,000-sf penthouse at a cost of $9 million, according to company officials.

“The Palmer House needs to be competitive, and our new owner’s exciting and innovative plans over the next three years will return the Palmer House to its rightful place as one of the world’s great hotels, and most assuredly one of the top hotels in Chicago,” says Palmer House Hilton general manager J. Peter Lynn. He adds the Palmer House renovations are coming as plans for new hotels are being announced, in addition to renovations at other Downtown hotels.

The sale by Hilton Hotels Corp. last year set a high-water market in the Downtown market. However, this year has seen DiamondRock Hospitality Co. pay $295 million for the Chicago Marriott Downtown and LaSalle Hotel Properties acquire the Westin Michigan Avenue for $214.7 million.

Here's a rendering for 555 West Kinzie. It looks a lot like Michigan Avenue Tower to me. It is a Pappageorge/Haymes design.

https://extranet.emporis.com/files/transfer/6/2006/05/459976.jpg

https://extranet.emporis.com/files/transfer/6/2006/05/459977.jpg

Michigan Avenue Tower III???

http://www.suntimes.com/output/roeder/cst-fin-roeder24.html

New condo production coming to Kingsbury
May 24, 2006
BY DAVID ROEDER SUN-TIMES COLUMNIST


The investment team of former stateSen. William Marovitz and Bud Cataldo, who have been active in River North condo projects, are moving a shade west with their next big deal. It's at 660 N. Kingsbury, between Erie and Huron, where today they are starting to market a 26-story, 166-unit building.

Marovitz said the building is designed by well-known Chicago architect Lucien Lagrange, who has completed two other projects in the booming residential corridor near the old Montgomery Ward complex. The Marovitz-Cataldo venture is at the site of Ronsley Special Events, a prominent florist and production company that expects to relocate in the city.

Prices for the condos will range from about $350,000 to more than $1 million for penthouses, Marovitz said. Ronsley owner Michael Leventhal started planning the project in 2004, but Marovitz said he and Cataldo have acquired most of his interest. Rizzo Realty Group in Chicago is marketing the new building, called Park Kingsbury.

COLLEGE LIFE: Developer David Dewey and partners who own the old 59 E. Van Buren office building have opted to convert it to student housing. The rechristened Buckingham Building, a nationally registered landmark, will have 129 units, enough for around 400 students, Dewey said. He said one or two of the South Loop schools might sign a master lease for the rooms, thus reserving them for their students.

The project puts its own twist on dorm living, including an almost unheard-of amenity: in-unit laundries. Dewey said students will pay $900 to $1,100 per month. A restoration of the landmark has started, and leasing will begin in August. It is next door to the blueblood Chicago Club, and I can just see those CEOs complaining about student parties.


Old rendering
http://skyscraperpage.com/gallery/data/554/6324501_west_huron.jpg

Updated renderings
North Elevation
https://extranet.emporis.com/files/transfer/6/2006/05/460079.jpg

East Elevation
https://extranet.emporis.com/files/transfer/6/2006/05/460071.jpg

Very attractive. Is that a Lucien Lagrange design Victor? The rendering style makes it seem as such.

- edit

- edit

• Updating the Central Area Plan. The city is hiring a consultant to re-examine growth projections, create a lighting plan for Michigan Avenue buildings between Washington Street and Congress Parkway, and "explore potential funding mechanisms" for the Carroll Avenue line and other transit projects, according to a summary the city sent to potential bidders.

Hey - that seems like a minor improvement, but it will totally change the image of Millennium/Grant Park, as well as changing dramatically the most commonly-photographed angle of the skyline (the Planetarium).

As for the Park Kingsbury, I hope they don't do anything to the row of older buildings along W Ontario. It's a pretty sweet little canyon there, and I'd hate to see it ruined by some new skinny towers with pedestals.

A blurb from INSIDE COMMERCIAL REAL ESTATE
http://www.chicagotribune.com/business/chi-0605310082may31,1,3999686.story?coll=chi-business-hed

by SUSAN DIESENHOUSE
Published May 31, 2006

Student apartments: The art deco Buckingham Building at 59 E. Van Buren St. is undergoing what industry sources estimate is an approximately $30 million transformation from offices into student apartments by Buckingham LLC, a joint venture of Brownstone Realty & Development Co. and L&H Real Estate Group.

The 227,000-square-foot, 27-story terra cotta and granite building will be ready for occupancy by May 2007 and leasing will start this August, said Brownstone principal David Dewey.

The studio to four-bedroom apartments will rent for about $900 to $1,100 a bedroom fully furnished to some of the approximately 60,000 students who attend colleges in the South Loop.

Action on Kingsbury: Construction won't start until the end of the year on the $70 million Kingsbury Plaza condominium tower designed by Lucien LaGrange Architects, but the developer, Cataldo/Marovitz Partners, already has $5,000 deposits on 135 of the one- to three-bedroom units.

The old warehouse on the half-acre River North site will be demolished and residences in the new modernist structure at 660 N. Kingsbury St. should be ready for occupancy by mid-2008.

Prices will range from $350,000 to $1 million, said developer William Marovitz.

He expects the sleek, bluish 60-story structure to be populated by a wide range of buyers, from first-timers to investors and former suburbanites.
--------------------------
I don't think it references to Park Kingsbury.

edited

SOUTH LOOP MOVES: The developer Smithfield Properties LLC is about to close on the purchase of adjacent buildings at 626 and 642 S. Clark, said David Crawford, partner in D2 Realty Services Inc., which was part of the sale with partners.

Crawford said Smithfield, headed by W. Harris "Bill" Smith, plans student housing on the site, with the two-story building at 642 to be demolished and the 10-story building at 626 to be renovated. Smithfield executives could not be reached.

Meanwhile, Dwinn-Shaffer & Co. said it has negotiated $78 million in construction and second-stage, or mezzanine, financing for a 31-story condo tower being built at 601 S. Wells. The project is the work of Evanston-based architect and developer Thomas Roszak.

Sales are under way for the 233-unit building, which goes by the name Vetro, the Italian word for glass. Prices range from $170,000 to $830,000.

The property is across Wells from the old CSX railroad property, part of which the real estate team of Frankel & Giles has under a long-term option for future residential development. The railroad still has the rest.




The building they want to knock down - Is that Pat's Pizza? The stretch of Clark starts with a parking garage at Harrison followed by a taller building (626), 2-story (642), taller building, and then the car wash/garage. Also, does anyone know if Burnham Pointe will take out that car wash/garage?

Also, I noticed signs at the SEC of Harrison and Clark across from the subject buildings for request in variances. I believe they asked for a larger driveway and the allowance for a bank pull-up window. Does anyone have any information about this?

Ok is that a typo about the new kingburys building? 60 stories?

http://www.pioneerlocal.com/cgi-bin/ppo-story/localnews/current/sl/06-01-06-938559.html

Highrise plan irks neighbors
BY FELICIA DECHTER|STAFF WRITER

Some neighbors around Columbus Hospital are gearing up for another fight with the site's former project manager, this time over the filing of a Planned Development application for the property next door to the shuttered hospital at 428 W. St. James Place.

Kevork Derderian said he filed a Planned Development application with the city in April to build a 16-story highrise on the site now occupied by Cabrini Hall.

Yet with the fate of the Columbus property still up in the air, Derderian's plan is receiving a chilly reception from both nearby residents and Alderman Vi Daley, 43rd.

The alderman said she suggested to Derderian that he might be better off not pursuing his plan.

"I'm concerned about how such a small street like St. James would be affected by a large building like the one proposed, especially with the traffic from the proposed building coming in and out of the driveway onto St. James," Daley said.

She added that during the Columbus negotiations, American Invsco said that the Missionary Sisters would retain Cabrini Hall as their home convent and spirituality center. "Cabrini Hall was not included in the Columbus PD," Daley said, "and no proposal for redevelopment as residential was ever discussed.

"If Derderian did pursue a project at this location, he should consider renovating the existing building which is a significant structure. The existing building could possibly be used to develop affordable units which the church has been strongly advocating, or possibly senior citizen housing. If the building must be demolished, the replacement would ideally be consistent with the scale of St. James, three and four story-story buildings."

Derderian is seeking to build a 16-story, 201-foot tall Lucien Lagrange-designed, 41-unit building with 62 parking spaces. If the plan is approved, he said, he will make a $240,000 donation to help refurbish Sun Shine Park across the street from the Columbus site, and to help continue efforts to "naturalize and reinvigorate" the North Pond.

Derderian also said he had a study done by traffic engineers KLOA, and the study "shows very little traffic impact by this development as we have designed it."

"Our plan as submitted is very fair and substantially in keeping with the zoning, the height and the building bulk of this block," Derderian said. "The building height should not be an issue as the mid- and high- rise buildings on the west are almost as tall and to the east are dramatically taller than this building. We have put in extra parking so there will be no parking from this development on the street. We have the traffic study to prove there will be very little impact on traffic from this new development."

Derderian said he submitted a Planned Development application after attending a meeting where neighbors from the 2500 N. Lakeview building complained, and downzoning of the site was mentioned. Had that not happened, he said, he would have waited to submit his application.

Yet those living at 2500 N. Lakeview do have several complaints.

According to Nick Berberian, the community representative from the building, the entire 2500 building opposes the proposal, "as well as many others who worked very hard on the Columbus Hospital project. This on the heels of that, has people concerned."

Berberian said he has a few concerns with the project, one being that St. James is very narrow, a one-way street with parking on both sides. "It is a mess," he said, "and with the Columbus project of 325 units and 700 cars...adding Columbus Hospital and another 60 cars to this project is a real problem."

The traffic situation, he said, is always of great concern, and people spent an enormous amount of time debating the Columbus Hospital site. "Now the same associated developer is coming in...this really violates the spirit of what was agreed to in respect to Columbus Hospital," Berberian said. "It's a public betrayal, a betrayal of what was reached on a community-wide basis."

Another issue, Berberian said, is the proposed building's character, as there are low-rise, stone buildings around. "There is pretty resounding opposition," he said, referring to the plan's traffic, height, and character.

Darlene Chansky, treasurer of the 2500 Lakeview Condo Association, also has concerns.

She said plans for the St. James site were not mentioned when negotiating the Columbus property, and the only high-rises allowed with that plan were to front Lakeview. Chansky also has issue with the increased number of cars, and, she said the design of the proposed high-rise "does not fit the traditional three-story family dwellings in the neighborhood."

"I would like to see a structure more in line with the architecture of the neighborhood," Chansky said. "Traffic and congestion would be a nightmare. The proposed building would also block sunlight to the surrounding buildings."

Cabrini Hall was originally a Single Room Occupany hotel, turned convent and medical offices. Owned by the Missionary Sisters of the Sacred Heart, it has been vacant more than three years.

Any development planned for St. James Place requires city approval, and will be scrutinized since it falls under the purview of the Lakefront Protection Ordinance. According to Connie Buscemi, spokesman for the city's Department of Planning and Development, Derderian's application is under review.
-----------------

Renderings:
http://img467.imageshack.us/img467/8468/stjames2qp.jpg

From BVictor:
https://extranet.emporis.com/files/transfer/6/2006/06/462011.jpg

http://www.chicagosuntimes.com/outpu...-roeder071.htm

Office users find room to grow in River North
June 7, 2006
BY DAVID ROEDER SUN-TIMES COLUMNIST


"Build-to-suits," real estate lingo for buildings designed for a specific occupant, usually happen in the suburbs. But an unlikely market for these projects has emerged in bustling River North.

Alter Group Ltd., pending the city's zoning OK, plans a 12-story building on the south side of Illinois between Clark and La Salle for the Erikson Institute, which teaches about child development. And another build-to-suit is in the works by one of Chicago's most active speculators, Centrum Developers. The client is itself.

A Centrum partnership has a contract to buy 213 W. Hubbard, the southwest corner of Hubbard and Wells, where a parking lot has a close brush with the Chicago Transit Authority's elevated tracks. Centrum Partner John McLinden said an eight-story, 90,000-square-foot building will go up that will become his company's headquarters.

Centrum is moving from next door, 225 W. Hubbard. McLinden said other tenants will be the architecture firm Hirsch Associates LLC, which will design the building, and the Roche BoBois furniture store on the ground level. They're aiming for completion in late 2007.

McLinden said he's negotiating to deed the eastern 50 feet of the property to the CTA, with Centrum promising to make it a landscaped plaza at its own expense.

http://img394.imageshack.us/img394/5063/042706alter00000nn.jpg

Ooooh - VERY cool.

..

I dig it. Reminds me of a bigger version of the Shure Tech Center in Skokie (or whatever 'burb that is).

I probably should have clarified that the rendering is of the Alter Group project (designed by SBC), not the Centrum HQ.

A busy agenda for this months plan commission

121 North LaSalle Street
City Council Chambers, City Hall
Chicago, Illinois 60602
June 15, 2006
1:00 P.M.


A proposed Amendment to Residential-Business Planned Development No. 967
submitted by Ten East Delaware, LLC and First Elysian Properties, LLC for the property generally located at 912-920 North Rush Street. The applicants propose to increase the overall floor area ratio from 18.73 to 21.68, increase the number of parking spaces in Sub-Area II from 125 to 188 and decrease the number of dwelling units in Sub-Area II from 229 to 144. (42nd Ward)

The Streeter, Tower 2
A proposed Amendment to Residential-Business Planned Development No. 915, as amended submitted by OGM Investors II, LLC for the property generally located at 321- 363 East Ohio Street. The applicant has proposed to increase the number of dwelling units from 900 to 961, increase the number of parking spaces to 961 and reduce the overall height of the Phase II building. (42nd Ward)

A proposed Business Planned Development application submitted by 29/39 South LaSalle Holdings, LLC for the property generally located at 29-39 South LaSalle Street. The applicant proposes to renovate and preserve the historic New York Life Building at 39 South LaSalle Street for a hotel use and to construct a 60-story office building at 29 South LaSalle with enclosed parking for 260 cars. (42nd Ward)

A proposed Amendment to Residential Planned Development No. 947 generally located at 501 West Huron Street. The Applicant proposes to increase the Floor Area Ratio from 7.00 to 8.75 in order to construct a 28-story high-rise with 168 residential units and 186 parking spaces. (42th Ward)

The applicants propose to increase the overall floor area ratio from 18.73 to 21.68, increase the number of parking spaces in Sub-Area II from 125 to 188 and decrease the number of dwelling units in Sub-Area II from 229 to 144.
Am I missing something? Why do they want to increase the FAR if they want to decrease the number of dwelling units?

The Chicago Federal Center Expansion
June 20, Tuesday
12:15 P.M. - John Buck Gallery, Chicago Architecture Foundation, 224 South Michigan
Sponsor: Chicago Architecture Foundation
Free event

Special lunchtime lecture. Chief Architect of the U.S. General Services Administration's Great Lakes Region, Robert Theel, will present background and future visions for the expansion of Chicago's Federal Center over the next 30 years. The briefing will inform the architectural and construction community about possible approaches and timelines to develop the half-block adjacent to the Dirksen U.S. Courthouse in Chicago's Miesian Federal Center. The site will improve security for the courthouse, reserve space for future federal workplace needs, and help assure preservation of the Federal Center, an architectural landmark.

Information: 312/922.3432 x266 or on-line (http://www.architecture.org/programs.html#lunchti)

http://www.suntimes.com/output/business/cst-fin-nok21.html

Mich. Ave. Nokia store set to open
June 21, 2006
BY HOWARD WOLINSKY Business Reporter

Nokia has planted its flag on Michigan Avenue, a block away from a "pop-up" store rival Motorola opened earlier this month in the former Terra Museum of American Art.

Curious shoppers Tuesday morning peeked in the Nokia store at 543 N. Michigan, and were politely informed by security personnel to return on Saturday, when the Finnish phone maker opens its first Nokia Flagship store in North America and only the second in the world (Moscow was No. 1). Nokia gave a preview to the Sun-Times.

Decked out in a black suit with a black shirt, Winston Wright, who heads the Nokia Flagship retail team in the Americas, said, "We're genuinely thrilled to be here. A mobile phone store on Michigan Avenue, how cool is that? That wouldn't have happened 10 years ago."

Wright said the presence of the Nokia store along with the first-of-its-kind Motorola Destination Q store at 666 N. Michigan, designed to promote the new Moto Q e-mail phone with Verizon Wireless, is "good for the category. We think it's great that people in our space are welcome on Fifth Avenue in New York and Michigan Avenue in Chicago. Years ago, phone stores would have been considered declasse. No more."

The Motorola store is meant to run through the summer to show consumers how to use the new Q phone, which adds photo and music features and e-mail to a smart phone. The Nokia Flagship is meant to be a permanent fixture, showing a wide range of phones from very basic "voice-centric" phone for a little more than $100 to smart phones in the $500-to-$700 range on up to handmade luxury phones starting at $5,000.

Tony Marengo, general manager of the Nokia store, formerly assistant manager of the Apple Computer Store up the street and formerly with high-end audio retailer Bang & Olufsen, said "We're here to stay. We're not just a pop-up here for eight weeks."

Take that Moto.

Rather than a mobile phone store, the sleek Flagship store, which contains about 1,200-square-feet of street-level retail space, looks more like an upscale jewelry store. Phones are arranged on display cases with spotlights. The walls are lit with LEDs that change colors. Photos by contestants in a local photography contest and videos made on Nokia N90 phones by film students of Chicago neighborhoods are shown on a series of 28 LED screens that line the north and south walls.

Wright said the emphasis in the store is on educating consumers, helping them find a phone that meets their needs and then helping them learn how to use the phone, such as how to edit a Word file on a phone, or listen to music or to take a photo and then print it out via a wireless Bluetooth connection.

"We've made a big investment in Chicago. It's an important market for us," Wright said.

With the Flagship store on Michigan Avenue, Nokia plans to relocate its Nokia Experience store, which only displays but doesn't sell phones, from North Bridge Mall to Fox Valley Shopping Center. There are similar stores in Northbrook and Schaumburg.

Eighteen Flagship stores are planned, with others already announced for New York, Hong Kong, Helsinki and Mexico City.

Why Chicago? Wright said it wasn't a jab at Motorola. "It was a matter of the real estate becoming available here first," he said.

Neil Mawston, associate director of global wireless practice for Boston-based Strategy Analytics Ltd., said he expects Samsung to join Motorola and Nokia in the retail world. "The rest of the market will struggle to copy Nokia, due to smaller marketing budgets and less resources," he said.

$90,000 for a phone? 'We can go higher'

Got some spare change jangling in your pocket? In the mood for a bit of luxury?

Why not check out the handmade Vertu phones from Nokia in the Vertu Lounge, a "store-within-in-a-store" in the back of the new Nokia Flagship Store at 543 N. Michigan?

Vertu is Nokia's brand name for high-end phones that resemble fine jewelry or watches. The Chicago Vertu store is the first of its kind in the world.

Arnaud De Schuytter, director of Vertu Americas, said the phones contain new materials not ordinarily found in watches, such as virtually unscratchable sappire crystal, polished ceramic, ruby bearings and housings made from gold, stainless steel, titanium, carbon fiber and other unusual materials.

"There is no plastic in these phones," De Schuttyer sniffed in his French accent.

Some materials used on Vertu phones have migrated down to more affordable phones, such as the $749 stainless steel Nokia 8801 and the $599 Nokia 7380 with leather.

If you must know, Vertu phones start at $5,000. One customer ordered a $90,000 phone with platinum and jewels. "We can go higher," De Schuytter allowed.

One extra on these phones is a dedicated concierge button -- the least they could do for the price. For a year, the Vertu owner can call a concierge service virtually anywhere in the world to make dinner reservations and purchase theater and sports tickets. When the year's up, the concierge costs $100 a month.

http://www.chicagosuntimes.com/output/roeder/cst-fin-roeder21.html


David Roeder
Buck eyes midrange hotel for State Street site
June 21, 2006
BY DAVID ROEDER SUN-TIMES COLUMNIST

Best known for its Wacker Drive office towers, the John Buck Co. is expanding its investment in hotels as part of a venture to launch a lodging brand across the country.

The Buck firm has signed with Starwood Hotels & Resorts Worldwide Inc., which is introducing a midrange chain called aloft (written in lower case in an appeal to coolness). In Chicago, Buck hopes to pull off an aloft on its long-vacant site at 505 N. State, next to the American Medical Association headquarters.

Greg Merdinger, principal at the Buck firm, said plans call for pairing a roughly 250-room hotel with 120 residential condominiums in a building somewhere around 20 stories tall. That's shorter than what Buck has called for in prior proposals for the site, a plaza that is a popular outdoor respite for River North office workers.

Merdinger said a smaller building would have a "boutique feel" with "architecture that is very sleek and very fashion forward." He is directing the Buck initiative with Paul Novak, managing director of the hospitality division.

They worked together in the early 1990s to attach a Marriott Courtyard hotel to an apartment tower Buck built at 440 N. Wabash. Novak worked for Marriott's Courtyard division for 11 years and was involved in the construction of more than 200 hotels.

Merdinger said he hopes construction can start at 505 N. State late next year.

Another Chicago area site that could get an aloft is Buck-owned property near 22nd Street and York Road in Oak Brook. Merdinger said the western suburbs can use new lodging, but he's concerned about Lombard's plan for a government-owned 500-room hotel and convention center. "That could just take the demand right out of that market," Merdinger said.

Novak said that in addition to the Chicago area, Starwood has granted Buck rights to build alofts in four other regions: Ontario, Calif; suburbs of Nashville, Tenn., and Detroit; and part of San Francisco near AT&T Park, home of the Giants.

Joining Buck in the deal are Greenfield Capital Partners LLC and a publicly traded hotel management firm, Interstate Hotels & Resorts Inc. Merdinger said the group hopes to start at least three alofts in its first year and have up to 20 operating by 2012.

Terms of the partnership aren't known. Merdinger said it should require $100 million in annual capital and that all three partners have to agree on site selection.

The nation already has a confusing array of hotel brands, but Starwood believes it has found an opening in what it calls the select service field. It's largely for business travelers and couples who want an upscale place with a bar and a pool, but don't want to pay as much as a Hyatt or Westin might charge.

Merdinger said signature aloft features will include 9-foot ceilings, big windows, built-in workstations and roomy bathrooms. It's a concept fresh from the ground up and therefore isn't suitable for renovated hotels or for being squeezed into old office buildings, he said.

Starwood has said it wants some 500 alofts around the world by 2012. Most probably will go on greenfield locations on the outer reaches of suburbia.

Buck's piece of that amounts to its biggest push into hotels since its North Bridge project in the late 1990s just west of Michigan Avenue. North Bridge included five hotels.

Merdinger said the Chicago firm Guajardo REC Architects LLC will design the 505 N. State building. A principal at the firm, Gregory Randall, has several high-profile credits in town from his work at DeStefano & Partners.

http://www.suntimes.com/output/business/cst-fin-american22.html

American Girl store moving to Water Tower?
June 22, 2006
BY SANDRA GUY Business Reporter

American Girl Place might take over the Lord & Taylor store at Water Tower Place, giving Chicago's doll and tourist attraction a prime Michigan Avenue address.

American Girl probably would take only three of Lord & Taylor's seven floors, enough to expand its existing 35,000 square feet to 47,000 square feet and create a more attractive look, said Jacqueline Hayes, president of Jacqueline Hayes & Associates Ltd., a Chicago real estate brokerage specializing in retail leasing.

The move would be only a block or two away, just on the other side of the Water Tower.

"American Girl's current space [at 111 E. Chicago Ave., just west of Michigan Avenue] is too small and too clumsy. It has proven to be inefficient," Hayes said.

The store draws 1.3 million visitors to Chicago each year.

The most glaring example of the poor store layout is the entrance, a small space that holds little more than an escalator up to the store and cafe, and a stairway down to a museum and theater, Hayes said.

A spokeswoman for American Girl Place said Wednesday, "We're exploring our options."

The spokeswoman for the Middleton, Wis.-based retailer declined to comment further. But she declined to deny that negotiations are under way for space at the Lord & Taylor store.

The Lord & Taylor department-store chain was put up for sale in January by owner Federated Department Stores, which acquired Lord & Taylor at the same time it bought Marshall Field's from May Department Stores.

Federated is reported to be weighing three bids for the Lord & Taylor chain, but the Cincinnati-based company also has been selling off stores one-by-one to shopping-mall developers.

Federated has announced buyers for 56 of 80 local department stores nationwide that it is shedding as a result of its acquisition of May Department Stores. Many of the stores have been sold to mall developers, who use the space to upgrade the mall or lease it to specialty retailers.

Retail analyst Howard Davidowitz has said the 141,000-square-foot Lord & Taylor store at Water Tower Place, 835 N. Michigan Ave., could be split among fast-growing retailers such as Williams-Sonoma and Bed Bath & Beyond, or it could be sold to a fast-growing retailer such as Target or a department store such as Von Maur.

A sticking point is the difficulty of leasing retail space on upper floors because of poorer visibility than on the Mag Mile. Retail space on North Michigan Avenue also is pricey, with a 3,000-square-foot space renting for $300 and more a square foot, Hayes said.

The trade magazine Women's Wear Daily has reported cash-rich private-equity groups and companies that dispose of poorly performing retail stores are bidding for the Lord & Taylor chain.

A Federated spokesman said he could say nothing more about the bidding process for Lord & Taylor. The sale is expected to be complete by year's end.

This is somewhat related to the post above. I would really hope that Target or Bed Bath & Beyond did not move into Water Tower.





By ANNE D'INNOCENZIO, AP Business Writer 14 minutes ago

NEW YORK - The famed Lord & Taylor chain will go on after its sale to a property development company, but shoppers likely will see a leaner fashion merchant, including perhaps a dramatically smaller flagship store in Manhattan.
ADVERTISEMENT

Federated Department Stores Inc. announced a deal Thursday to sell its Lord & Taylor department store chain for about $1.2 billion in cash to Purchase, N.Y.-based NRDC Equity Partners LLC, which will be putting its business under a microscope. NRDC is a partnership between principals of Apollo Real Estate Advisors L.P. and principals of National Realty & Development Corp.

Federated said its board has approved the sale, and the deal is expected to close in the third quarter, pending regulatory approvals.

The $1.195 billion deal includes 48 Lord & Taylor stores, including the Fifth Avenue flagship in Manhattan, as well as a distribution center in Wilkes-Barre, Pa. Aside from New York, other locations, predominantly in the Northeast, are in New Jersey, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania and District of Columbia.

"It will be business as usual," said Richard Baker, president of NRDC, reached by phone, noting its intention to keep Lord & Taylor as an ongoing specialty department store. "We are going to do a lot of high-level and granular analysis in order to determine the most efficient way to operate each store."

Baker declined to give details, but said that NRDC is studying all of its options, including size and locations of each store. NRDC, for example, will be figuring out whether it makes sense to have a slimmer flagship in Manhattan. The flagship is about 600,000 square feet, but could be slashed in half, Baker said.

Baker skirted the issue of Lord & Taylor's growth potential, only noting that the entire chain could shrink before getting bigger.

NRDC said that it will keep Lord & Taylor's management team, including president and CEO Jane Elfers, who since 2003 has been campaigning to restore its luster. Elfers could not be reached for comment.

"This agreement concludes a successful process to divest Lord & Taylor," said Terry J. Lundgren, Federated's chairman, president and CEO, in a statement. "While Lord & Taylor does not fit with Federated's strategic focus on building the nationwide Macy's and Bloomingdale's brands, it is a well-known niche specialty retailer with a great name, many outstanding locations and an experienced management team."

In February, NRDC acquired Linens 'n Things in partnership with Apollo Management.

"Lord & Taylor has been an iconic national brand for 180 years. We believe there is significant opportunity to continue the revitalization of the brand begun in 2003," Baker said.

Federated, which purchased Lord & Taylor when it acquired May Department Stores Co. last year, announced in January that it was putting Lord & Taylor on the block because it didn't fit with an expansion strategy for its larger Macy's and Bloomingdale's chains.

Lord & Taylor's performance has slipped in recent years. Fixing it is going to be challenging, analysts say.

The department store chain, founded in 1826, had established a reputation for offering American classic design but lost its highbrow appeal in the 1990s amid fierce competition when it began to trade down to lower-priced merchandise.

The retailer's problems grew with increased competition from specialty stores like Chico's FAS Inc., which developed a strong following for the over 35-year-old female customer.

In 2003, Lord & Taylor, under Elfers' leadership, decided to close 32 underperforming stores in 15 states and spearheaded a makeover aimed to bring back more exciting merchandise to its floors. The retailer eliminated moderate-price labels that were overly distributed elsewhere and brought in trendier brands such as Kate Spade. But efforts to bring back the more well-heeled customer have been mixed.

The new buyer's plans to keep Lord & Taylor as an ongoing chain surprised some analysts.

"I was shaking my head a little bit. I wasn't expecting it to be bought as a going concern," said Patricia Edwards, who helps manage retail funds for Wentworth, Hauser and Violich investment counselors."If they are able to bring back merchandise that really surprises and delights their customers, then they will be able to continue as a specialty department store chain. But they can't wallow around in the mire of mediocrity."

Ironically, L&T will be facing even more cutthroat competition this fall from its soon-to-be former parent Federated. That's when Federated will be converting most of its mid-brow May Co. stores to the Macy's brand by September, transforming it from a regional player to a national fashion retailer with more than 800 stores. Macy's will focus on more exclusive partnerships to drive traffic.

Shares of Federated rose 33 cents to close at $36.13 on the
New York Stock Exchange.

^^
The good news is Lord & Taylors is going to survive
The good news should be this store will survive in its present location. I have never heard that it may be performing poorly. And I don't think American Girl would help the other tenants out much.

Why not put American Girl in the big hole in Chicago Place?

You know putting it in Chicago Place is a good idea. Thats one way to get people to go to that mall.

I'm sure that's one of the options that AGP is looking at. I thought the comment about upper floor space being difficult to lease was strange. The statement certainly holds true 99.9% of the time, but, Water Tower is a different beast altogether. It's the only vertical mall in Chicago that really draws and the upper floors see as much traffic as many other ground-level locales on Michigan Avenue.

Source


June 23, 2006

Subscribe to an RSS feed on this topic


Chicago developers reach for the sky
Construction boom adds 40 buildings of 50 stories or more since 2000
(AP) - In this city where the skyscraper was born, it is being reborn.

Luxury condominium towers and office buildings that climb 600 feet or more - some way more - into the sky are sprouting up all over downtown. Along the Chicago River, the Trump International Hotel and Tower is inching its way up to what will be its full 92-story height. Nearby, plans are in the works for a 124-story skyscraper called the Fordham Spire that would knock the Sears Tower from its perch as the tallest building in the United States and take its place among the tallest buildings on the planet.

In all, no fewer than 40 buildings at least 50 stories high have been built since 2000, are under construction or are planned. Together, they add up to a surge in high-rise construction in the city that, if not unprecedented, hasn't been seen here since the 1960s and 1970s when the Sears Tower, John Hancock Center and other buildings helped give the city one of the most distinctive skylines in the world.

And while there is a flurry of high-rise construction in the United States, particularly in New York, Miami and Las Vegas, the tallest of the tall are going up in Chicago. Of the three tallest buildings under construction, two are here, according to Emporis, an independent research group that catalogues high rise construction around the world.

Advertisement

Related Article Topics | Related Industry News
"Out my window there are two, three, four, five new high-rises under construction or just completed in the last year and a half, and they've just announced another 80-story building," said Jim Fenters, who has lived on the 51st floor of a 54-story building overlooking Grant Park since 1979. "It's just remarkable what's happened here."

So widespread is high-rise construction that projects that would be headline news in other cities go all but unnoticed.

"The Waterview Tower, that project is 1,047 feet, taller than the Chrysler Building," Blair Kamin, the Chicago Tribune's Pulitzer Prize-winning architecture critic said of one building under construction. "In any other city there would be endless conversations, (but) here a 1,000-foot tower is, 'Ho-hum, how are the Cubs doing?"'

A mix of several factors have triggered this construction frenzy.

Start at City Hall. Chris Carley, the developer of the Fordham Spire, remembers the days not so long ago, maybe seven years, when city officials would greet proposals for high-rises with talk about knocking off 10 or more floors.

"The comment from the planning department was, 'Well, we don't want to have these huge, tall buildings like New York,"' he said.

Contrast that with the more recent experience of Chicago architect David Haymes, during discussions with the city about a planned condominium tower.

"I remember at least two (planning and development) staff members saying, 'Can't you make it taller? We really would like it taller.' We were taken aback."

Other developers report similar experiences.

"If you give them something that's architecturally significant ... they'll let you build what you need to build," said Donald Trump Jr., who is overseeing construction of his father's skyscraper.

Carley and Kamin say Chicago's change in attitude might have something to do with Sam Assefa, a former San Francisco planner who came to the planning department a few years ago espousing the virtues of tall, thin towers like those popping up in Vancouver, British Columbia.

Neither the mayor nor Assefa would comment for this article, but Carley said Mayor Richard M. Daley clearly took Assefa's message to heart.

"He's definitely encouraging and espousing taller buildings," said Carley, whose Fordham Spire would rise 2,000 feet, or more than a third of a mile, into the air.

Known nationally for beautification efforts like planting flowers, shuttering a small downtown airport to open a park, encouraging rooftop gardens and building "green" schools, the mayor might seem an unlikely champion of high-rises.

But Daley's planning commissioner, Lori Healey, says it all makes sense. In exchange for allowing developers to go higher where eyepopping views - and huge price tags - are, the city gets buildings that are a lot smaller at their base than the ones developers would have to build if they weren't allowed to push high into the sky.

"You have less space taken up at the ground levels (and) there is a lot more green space," Healey said.

The city also gets something in short supply in downtowns with shorter, wider buildings: light.

"The shadow cast by the profile of a tall, thin building is much less than a short, fat one," Healey said.

That's not to say there aren't concerns - particularly since some of these new buildings will figuratively and literally cast their shadows on some of the city's most recognizable landmarks.

"There is a concern (that) while on balance this is a good trend, very tall buildings don't belong everywhere," said Kamin, offering Trump's skyscraper as an example.

"The jury's out on whether (the building) will overwhelm landmarks like the Wrigley Building and overwhelm the river," he said. "People are concerned."

But nobody would be talking about the pros and cons of skyscrapers if there weren't a market. In Chicago there is.

It seems that more than a century after the world's first skyscraper, or "cloudbuster" as they were called in 1885 when the nine-story Home Insurance Building went up, Chicagoans remain enamored with tall buildings.

"Chicagoans live and breathe high-rises both within the profession and within the city," said David Scott, chairman of the Council on Tall Buildings and Urban Habitat, which, not surprisingly, is based in Chicago.

One reason for the latest surge in construction is that Chicago, like many major cities, is becoming an increasingly popular place to live among people with a lot of money - precisely the population that fled cities for suburbs decades ago.

Downtown, tall condominium towers - some with units selling for millions of dollars - are popping up at a pace that those who track development have never seen before.

"Nearly 6,000 (rental and condominium units ) are going to be delivered this year," said Gail Lissner, vice president at Appraisal Research Counselors, a Chicago real estate consulting firm. "It's bigger than anything I can remember, and I've been in business since 1975."

The city's geography also plays a role. Unlike some other cities that don't have much space to build, Chicago has huge chunks of land. Perhaps more importantly, the land sits near Lake Michigan, the Chicago River or parks - all places where future developers can't build view-blocking skyscrapers of their own.

"We offer unobstructed views, basically forever, of the park and the lake," said Bob O'Neill, president of the Grant Park Conservancy.

Not only that, but thanks to the internationally acclaimed Millennium Park and other projects, longtime residents like Fenders say the view is getting even better.

From his window, Fenders can see Millennium Park's bandshell designed by architect Frank Gehry. He can also see where Renzo Piano's new wing at the Art Institute of Chicago is being built and the spot where there are plans to build the Santiago Calatrava-designed Fordham Spire.

"These are three of the most famous architects in the world, and their (projects) are right here," he said.

A quick question - does anybody know what the status is on Metropolitan Tower (ie Britannica Ctr./Straus Bldg.)? It's supposedly undergoing condo conversion at the moment, but I haven't heard any news.

The reason I ask, honestly, is because I wanted to take a look inside it - the Emporis description sounds amazing. If it's locked up for construction, it might be a problem.

^
Globest

$143M Converts Metropolitan Into Condos
June 18, 2006 08:53pm

A-$142 million construction loan has been awarded to Louis D. D'Angelo of Metropolitan Properties of Chicago LLC, for the condominium conversion of the 30-story office building and adjacent eight-story building at 310-318 S. Michigan Ave. The two properties will be converted into 248 condominium units.

http://www.chicagobusiness.com/cgi-bin/news.pl?id=21136

La Quinta Inns ready to begin construction at 1 S. Franklin

La Quinta Inns & Suites is getting ready to start its conversion of the former Jewish Federation of Chicago's Loop headquarters into a 233-room hotel, the chain's first in the city.

Irving, Texas-based La Quinta plans to start construction on Sept. 1 and open the hotel at 1 S. Franklin St. in December 2007, a spokeswoman says.

The Jewish Federation, which is relocating to an office tower at 200 W. Monroe St., sold the tired, nine-story building to La Quinta for $9.2 million in a transaction that closed in May.

With occupancies and room rates on the rise, hotel developers are back in the building mode, with more than 3,500 rooms in the pipeline for the downtown alone.

In the Loop, Michael Reschke and Barry Mansur plan to convert part of a vintage office building at 208 S. LaSalle St. into a 370-room high-end hotel.

La Quinta plans to target the lower end of the market, with room rates of about $150 a night or less, the spokeswoman says.

"It's really an underserved segment of the Loop market," she says.

The hotel chain plans to expand the building to 120,000 square feet from its current 93,000 square feet, mainly by building an addition on a parking lot just to the east. The hotel will have about 1,600 square feet of meeting space and 4,200 square feet of street-level retail space.

Bryan Sullivan, executive vice-president of Rosemont-based Foresite Realty Partners LLC, represented La Quinta in the sale of the building. Rick Schuham, executive vice-president and branch manager in the Chicago office of Studley Inc., represented the Jewish Federation.

http://img526.imageshack.us/img526/1903/laquinta8ny.gif

..

CME focuses on economical real estate alternatives


By Thomas A. Corfman
June 28, 2006

(Crain's) — After a lengthy search of new development opportunities on the edge of the West Loop, the Chicago Mercantile Exchange Inc. is now focused on a more economical alternative — taking space in an existing downtown building where it would house administrative operations.
Currently located at 10 S. and 30 S. Wacker Drive, the Merc is seemingly a perfect candidate for a new development, with a balance sheet bolstered by $715 million in cash and a stock price whose 52-week low is $252 a share.

But rapid changes among financial exchanges, due to electronic trading and global consolidation, has apparently prompted Merc executives to take a cautious approach to the exchange's real estate needs.

A key part of the Merc's plan has been to move administrative operations to a new location while keeping the exchange's headquarters staff on Wacker Drive, sources say.

A Merc spokesman and its tenant rep, Holly Duran, a principal in Holly Duran Real Estate Partners LLC, decline comment.

About six weeks ago, Chicago-based Equity Office Properties Trust, which co-owns the two-tower complex on South Wacker Drive, put on the market about 175,000 square feet of space currently leased by the Merc at 10 S. Wacker, according to real estate research firm CoStar Group.

That step is consistent with the Merc's plan to downsize.

The country’s largest futures exchange has dropped negotiations to become the single tenant in a new office structure to be built at one of two locations near the West Loop, sources say.

One site is on the northwest corner of Des Plaines and Monroe Streets, which is owned by Des Plaines developer MR Properties LLC. The other site, a block away, is on the southeast corner of Des Plaines and Adams Streets, which is controlled by Chicago-based Fifield Cos., sources say.

Executives with the two development firms decline comment.

Now, the Merc's leading option is 350 N. Orleans St., where the Merc has begun negotiating to take more than 200,000 square feet of space under a long-term deal, sources say. The building is owned by the Merchandise Mart Properties Inc. unit of Vornado Realty Trust, sources say.

"The Mart talks to many prospective tenants, but we do not disclose the details of those conversations at any time," says a spokeswoman. A representative of CB Richard Ellis declines comment.

The Merc could still turn to other options, such as 100 N. Riverside Drive, or working out a deal with Equity Office, sources say.

The Merc currently has 487,000 square feet of office space at 10 S. and 30 S. Wacker Drive, according to a filing earlier this year with the Securities and Exchange Commission by the exchange's parent company. That space does not include the trading floors, totaling 70,000 square feet of space, which are located between the two towers and are owned by an exchange affiliate.





--------------------------------------------------------------------------------

Ooops!

The hotel chain plans to expand the building to 120,000 square feet from its current 93,000 square feet, mainly by building an addition on a parking lot just to the east. The hotel will have about 1,600 square feet of meeting space and 4,200 square feet of street-level retail space.http://img526.imageshack.us/img526/1903/laquinta8ny.gif

^ Nothing says lovin' like getting rid of another parking lot.

Is this the rendering of the whole hotel or just the expansion?

It's hideous - but, it sure does beat parking :)) And hip-hip-hooray for retail.

Yeah - here's to hoping that's NOT made out of the EIFS crap it seems to be. That seems to be a new standard for hotel construction, at least in suburban locations, which troubles me.

The design I can live with.. maybe.

Not all EIFS is bad :)

I guess this belongs here for the time being...

I'm a sucker for blogs (http://www.luxist.com/2006/07/07/nicky-o-hotels/) and came across this:

Nicky O Hotels
Jul 7th 2006 10:02AM
by Nicole Weston

We already knew that Nicky Hilton was planning to launch her own hotel chain, but now the hotel heiress officially has an opening scheduled for the first in a chain of boutique hotels. Nicky O (her middle name is Olivia) will open its doors this November in South Beach, Florida. Hilton is a self-described fashionista and her intent is to have her hotels focus on design and designers. In keeping with this, she has had several famous designers decorate the suites. Roberto Cavalli will be doing the 5,000-sq. foot penthouse in the SoBe hotel in a gold theme that mimics his retail stores.

A second location is tentatively scheduled to open in Chicago in December, with 3 or 4 more locations to follow.

---------

December? Isn't that much too soon to open?

Edit:

Shortly after, her second Nicky O will open on Chicago's historic Printer’s Row. "Miami will definitely be a party destination, and Chicago will be a little more calm," she says.

Where did you get that information about Printers Row? The fact that it may open by December makes me think it is a renovation of an existing building. A few other possibilities - A while ago I saw signage at 601-627 S Clark Street for request for variances. If they do not got for a PUD, and did not go before the plan commission, this one may have run right by us! Another possible location is about 745 S. Clark. A small parking lot at this location was just shut down and chained up without warning with signs saying it will no longer be accessible after July 1. Otherwise, I cannot even imagine where it would go! Maybe she is converting the Travelodge?

Here (http://people.aol.com/people/article/0,26334,1211011,00.html)

^ You is the man, Spyguy

Next flood downtown will be of office space
Older buildings hurt as tenants move out

By Susan Diesenhouse
Tribune staff reporter
Published July 11, 2006
http://www.chicagotribune.com/business/chi-0607110201jul11,1,2557889.story?coll=chi-business-hed

Two big leases announced Monday will provide a boost for a new $400 million office tower scheduled to start construction this fall at 351 N. Clark St., but the news exemplifies the problems as well as the promise in the downtown commercial real estate market.

Like other recent leases, these are likely to leave the downtown office market, and its weak River North submarket, with empty space to fill and with a new building that will generate the same or less income than existing ones. That raises a cautionary note for the prospect of vibrant growth in a long-sluggish property market.

Although leasing activity so far this year has turned in one of its stronger performances since the office market peaked in 2000, companies are leaving behind big blocks of empty offices without necessarily taking more space or paying higher rental rates.

As a result, "several pending lease expirations and relocations over the next 12 months will pose significant short-term challenges to an overall market recovery," said Mark Parrish, director of leasing for Grubb & Ellis Co.

"They're leaving a lot of space to backfill," he said.

On Monday, for instance, Mesirow Financial announced that it had signed a lease for 345,000 square feet in the new tower at 351 N. Clark, which it also is developing and which is now about 75 percent preleased.

Its other anchor tenant is the law firm Jenner & Block LLP, which signed a lease to occupy 390,000 square feet in the proposed 1.1 million-square-foot building.

The firm already occupies the same amount of space in the IBM Building at 330 N. Wabash Ave., where it has 375 attorneys and support staff. But at the new building it can have 500 lawyers and pay somewhat lower rent, said Donald Resnick, a Jenner partner. "About the same amount of space will accommodate our growth for the next 15 years," said Resnick.

"Our rent will be about the same or a little less than it would have been at the IBM Building by then," he said.

Jenner's experience illustrates one of the problems facing the approximately 121 million-square-foot metropolitan office market. Parrish said the market is struggling to absorb the roughly 22.5 percent of the space that is available for lease or sublease or that is on the market because it will soon be vacated, up from about 11 percent six years ago.

Rather than signal a robust expansion, some of this year's downtown leasing activity involves tenants who are sliding into a similar size office that is newer yet cost the same or less than their old offices.

"Companies are moving into new, more efficient space and leaving behind big blocks of space to fill," said Parrish, who estimates that in River North about 24.5 percent of the office space is available.

More jobs needed

Meanwhile, by 2009, when 351 N. Clark and another new River North tower at 300 N. LaSalle St. are completed, "downtown landlords will face a supply-side challenge," said Parrish.

To absorb the available space, he added, "the big question is will the economy produce enough jobs."

That seems unlikely, said Dennis Shubert, a real estate economist for Boston based Property Portfolio Research.

So far this year, he said, jobs in law firms are up 5 percent compared to a year ago, but those in business and financial services are up only 1.5 percent.

"It's disappointing that business and financial services, a major engine of this economy, isn't firing on all cylinders," said Shubert. "Chicago only just showed up for the economic boom the rest of the nation's been experiencing, but it's last call and the party is almost over."

Furthermore, about 75 percent of the new jobs are temporary ones that might or might not turn into permanent placements, said Mitchell Daniels, a labor economist for the State of Illinois.

Meanwhile, added Shubert, new office projects "are cannibalizing the market."

The irresistible lure to develop comes from an abundance of cash eager to invest in real estate, said Earl Webb, chief executive officer for capital markets at Jones Lang LaSalle.

"Strong sales have created a schizophrenic market where there's new construction yet a high vacancy rate," he said.

Interest rate factor

But the drive to build could dim with rising interest rates and heftier prices for construction materials.

And that could be a boon for Mesirow in its role as the developer of 351 N. Clark.

By 2009, when Mesirow plans to move to its new headquarters tower from two neighboring buildings where it currently occupies about 250,000 square feet, the leasing landscape might change.

"It will be hard to create new space and we'll present a good value for high-quality tenants," said Mike Szkatulski, a senior managing director at Mesirow Financial Real Estate Inc. "That's an opportunity."

Millennium-Art Institute bridge gets public airing

July 11, 2006

BY KEVIN NANCE Architecture Critic
http://www.suntimes.com/output/news/cst-nws-millen11.html

The Art Institute of Chicago's proposed $25 million bridge would soar above Monroe Street between Michigan and Columbus in the summer of 2009, connecting Millennium Park with the museum's new Modern Wing.

It would be 620 feet long and 15 feet wide. It would be 23 feet above grade as it begins to cross over Monroe, and 30 feet high at the point of its junction with the museum.

And unlike the park's BP bridge, it would be open year-round, thanks to a heating system that would melt any ice or snow that accumulates on its aluminum floor.

Art Institute and Millennium Park officials doled out these and other tidbits about the bridge, which was first announced last year, at a Monday night meeting of the Grant Park Conservancy and the Grant Park Advisory Council. The event was one of a series of meetings with community groups at which the museum hopes to build support for the bridge before seeking final city approval for the project later this summer.

"We're excited about the opportunity to connect these two great cultural institutions in Chicago," said Meredith Mack, the Art Institute's vice president of operations.

Response mostly positive

If Monday's meeting is any indication, the museum appeared to have little to worry about. Reaction to the bridge, which would start at the southwestern edge of the Pritzker Pavilion's Great Lawn and end up on the Modern Wing's third-floor sculpture terrace, was mostly positive.

The Grant Park Conservancy's Bob O'Neill, for example, hailed the plan for the views it would offer pedestrians of the city, the lakefront and the Michigan Avenue streetwall. "You can't get those views from anywhere else," he said. "I think it'll be incredibly well-used and a huge success."

Millennium Park's Ed Uhlir agreed, noting that the bridge will offer a spectacular and currently unavailable view of the park's Lurie Garden, which slopes down toward Monroe.

A minority opinion came from downtown resident Greg Reid, who lives in the nearby Harbor Point Condominiums, which overlooks the park. Reid said he was concerned about the bridge's potential to obstruct views of and from the lake, and about the broader issue of overcrowding and noise in the vicinity of the park.

"A lot of people do live here in the neighborhood," he said. "I don't want to turn Grant Park into Navy Pier, where people come down to

Millennium-Art Institute bridge gets public airing
A minority opinion came from downtown resident Greg Reid, who lives in the nearby Harbor Point Condominiums, which overlooks the park. Reid said he was concerned about the bridge's potential to obstruct views of and from the lake, and about the broader issue of overcrowding and noise in the vicinity of the park.

"A lot of people do live here in the neighborhood," he said. "I don't want to turn Grant Park into Navy Pier, where people come down to

This guy bothered me the second he started talking, you just knew no matter how many complements he put out there, the "BUT....." was comming.

I mean, Bridge to Art Museum = Ferris Wheel, bit of a stretch.
Furthermore, he was concerned with how it would look from his boat on the lake. I guess it takes all kinds.....

Furthermore, he was concerned with how it would look from his boat on the lake. I guess it takes all kinds.....

And I have been concerned about how the bridge will look from my Lear Jet.

http://www.chicagobusiness.com/cgi-bin/news.pl?id=21280

City proposes $550M LaSalle Street revival
July 11, 2006
By Greg Hinz

Chicago's financial district suffers from 'deterioration' and 'obsolescence'

(Crain’s) — City Hall Tuesday unveiled a half-billion-dollar plan to subsidize the rebirth of a huge swath of the Loop financial district, saying that Chicago’s traditional financial heart suffers from “deterioration” and “obsolescence.”
After months of rumors, the Daley Administration formally proposed to designate a 40-block section centering on LaSalle Street south of the river as a tax increment financing (TIF) district.

The city did not immediately spell out who would get money or in what amounts. But under an overview proposal submitted to the Community Development Commission, at least $550 million in property-tax receipts would be diverted from the Board of Education and other local governments over the next 23 years and instead be used to clear land, subsidize new building and redevelopment, and pay for public projects in the area, possibly a proposed Monroe Street express busway.

The proposed new TIF includes most of the Loop that is not already in the Central Loop TIF district to the north and east. Included are such landmark properties as the Board of Trade Building, City Hall, the Inland Steel Building and the Rookery, as well as the Riverbend site at Lake and the river that has been eyed for new growth.

Though many buildings in the area have historic charm, a lot of them “need help,” said Lori Healey, the commissioner of the city Department of Planning and Development. Only by modernizing mechanical and other systems will such buildings be able to compete with newer structures to the west and in the suburbs, she said, and building owners may not be able to afford to do that without city assistance.

United Airlines reportedly has considered at least two buildings in the proposed district for its new corporate headquarters. United is considering moving downtown, out of state, or staying in suburban Elk Grove Township.
The biggest budget item in the plan proposed Tuesday was $200 million for public works and related improvements. Ms. Healy said that could include a wide range of projects but said the city is particularly eyeing transit projects to fight increased downtown congestion.

Another $200 million is allotted for rehabilitation of existing buildings, with $50 million for property assembly.

The projects would be funded by growth of property-tax receipts within the TIF area. The city argues that much of that growth would not occur if not for the subsidies, but some civic groups have argued that it is not wise policy to strip schools of even inflationary growth in tax receipts.

Ms. Healey said the city “continues to review” what to do with the Central Loop TIF district, which is due to expire after next year.

That district originally was proposed as a means to help East Loop landlords modernize their buildings, but more than $100 million ended up being diverted to pay construction cost of Millenium Park.

The Community Development Commission took the plan under review, but is expected to approve it later this year.
http://img96.imageshack.us/img96/8035/lasalletif7ic.gif (http://imageshack.us)

http://img96.imageshack.us/img96/8035/lasalletif7ic.gif[/URL]

Why can't they extend it a little farther north to Wolf Point to help persuade the Kennedies to develop that shit?

http://www.chicagobusiness.com/cgi-bin/news.pl?id=21290

CDC approves $8M in TIF money for 188 W. Randolph
Approval to fund redevelopment moves to full city council

The Chicago Community Development Commission on Tuesday approved $8 million in tax-increment financing to help pay for the redevelopment into apartments of a crumbling office tower at 188 W. Randolph St.

The 47-story Gothic tower, infamous for its falling terra cotta several years ago, will undergo a $78 million renovation by Michigan-based apartment investor Village Green Cos., which bought the property with local firm Everhardt & Nesis Co. last year.

Under a redevelopment agreement with the city, Village Green plans to convert the office space into 297 apartments, 20% of them affordable to lower-income residents.

The request for tax-increment financing must be approved by the City Council. A company spokeswoman says the company plans to begin in the project in first quarter 2007.

Built in 1929, the high-rise drew the ire of City Hall in 2001, when chunks of terra cotta from the building began falling off. The property went into bankruptcy in 2002 and was auctioned off last year.

http://www.chicagobusiness.com/cgi-bin/news.pl?id=21289

Whitehall Jewellers to move HQ to 125 S. Wacker Dr.
High-capacity vault and secure elevator system support deal

With its current Wacker Drive headquarters destined to become rubble, Whitehall Jewellers Inc. is moving to a high-rise down the street.

The jewelry retailer has signed a lease for 52,000 square feet at 125 S. Wacker Drive, with plans to move there in September from its current offices at 155 N. Wacker.

Developer John Buck Co., which acquired 155 N. Wacker last year, plans to raze the aging building and build a new skyscraper in its place, but it must land an anchor tenant first.

"That essentially was the driver," says Rick Schuham, executive vice-president and branch manager at Studley Inc., the tenant representation firm that advised Whitehall. "It was pretty clear that Buck wants to clear the building."

Whitehall, with about 360 stores in 38 states, recently was bought out by two hedge funds, Prentice Capital Management L.P. and Holtzman Opportunity Fund L.P. The firm will occupy the 26th and 27th floors at 125 S. Wacker, which is owned by Tishman Speyer Properties L.P.

The 31-story tower is 65% leased, according to CoStar Group Inc. It was one of the few downtown buildings with a high-capacity vault and secure elevator system to store and transport Whitehall's jewelry, Mr. Schuham says.

Just spotted a snippet from Crains. United Airlines is officially moving their headquarters to downtown Chicago - 77 West Wacker (the former RR Donnelley building) to be exact.

http://www.chicagobusiness.com/cgi-bin/news.pl?id=21391

LA Fitness plans club in the Heritage at Millennium Park
California chain hopes to have 50 facilities in Chicago area within 5 years

LA Fitness International LLC plans to open a health club in the Heritage at Millennium Park as part of an aggressive push into the Chicago area, where it aims to have nearly 50 clubs within five years.

The Irvine, Calif.-based fitness chain is negotiating a 50,000-square-foot lease at the Heritage, a 57-story condominium project at the corner of Wabash Avenue and Randolph Street that opened last year, sources said.

LA Fitness would be the largest tenant in the development's 86,000-square-foot retail component, which includes Ann Taylor Loft, Intelligensia Coffee, McDonald's and Fifth Third Bank.

Dan Tausk, vice-president at Oak Brook-based Mid-America Real Estate Corp., which represents LA Fitness, declined to comment on the Heritage transaction, but says the chain is working on leases in the West Loop, South Loop and East Loop, where the Heritage is located. Another 10 city locations are planned.

The chain has already signed leases in Tinley Park, Alsip, Hanover Park and at Evanston's Sherman Plaza, which is being developed by a partnership including Klutznick-Fisher Development Co., also a partner in the Heritage.

LA Fitness plans 35 locations in the Chicago suburbs over the next five years.

The company, which has yet to open its first club here, is a few steps behind another newcomer to the Chicago market, Big Rock-based XSport Fitness. XSport has already opened 19 gyms in the area, mostly in the suburbs.

"We see it as direct head-to-head battle between LA Fitness and XSport Fitness," Mr. Tausk said.

Representatives of LA Fitness, XSport and the Heritage did not return phone calls for comment.

^ That's probably the first sign that this particular area is being recognized as a neighborhood and not just a shopping/tourist destination.

Now if only they could get a few grocery stores

I agree. A grocery store is a must. But they are opening a gourmet market in both Marshall Fields and at Lake/Wabash apartment building. Plus with Trader Joes going in at LSE its somewhat close by. I guess the next two closest would be Jewel at Roosevelt/Wabash and the Dominicks in Streeterville.

But there is steady progress in the business/residential development for the East Loop. Can't build a neighborhood overnight so once more of the residential projects are completed the more business will be developed.

^ Not a bad start, but not enough.

The presence of a large amount of grocery and convenience stores everywhere is paramount to the development of an urban, pedestrian-oriented community.

The current model of very large grocers establishing space in a few select spots downtown is a suburban mentality that will ultimately worsen traffic and undermine downtown living. These people need to do their homework.

In my current neighborhood in New York, there are no fewer than 8 grocery stores within a 2 block radius of me. When Chicago's downtown becomes more densely populated, smaller grocers and convenience stores need to be established to follow suit. The "1 mega-grocer serves all" mentality has to go

I thought Whole foods was setting up shop at LSE? Trader Joes is already UC at Ontario and Wabash...

Treasure Island is going to be in LSE. Also, Macy's is looking to open a gourmet food store at the State Street store.

^ Not a bad start, but not enough.

The presence of a large amount of grocery and convenience stores everywhere is paramount to the development of an urban, pedestrian-oriented community.

The current model of very large grocers establishing space in a few select spots downtown is a suburban mentality that will ultimately worsen traffic and undermine downtown living. These people need to do their homework.

In my current neighborhood in New York, there are no fewer than 8 grocery stores within a 2 block radius of me. When Chicago's downtown becomes more densely populated, smaller grocers and convenience stores need to be established to follow suit. The "1 mega-grocer serves all" mentality has to go

I can not agree more with your view. I would love for my current neighborhood, south loop, to go the route of smaller grocer venues. We have a Jewel about 4-5 blocks away but the reason I support 830 Park Michigan so much is because they are putting a grocery store in as part oftheir retail section. I love walking to and from the grocery store but I wont mind that I will have a closer option.

But in regards to downtown it is generally the other way of "When they come, they will build it"

I would think a full-sized grocer would do well in the Loop. Aside from all of the permanent residents that now call the area home, you've also got the commuters who would probably rather grab a few necessities on their nightly walk to Union Station than have to stop at a full-fledged parking-lot-involved grocery store when they got home to suburban hell.

http://www.chicagotribune.com/business/chi-060925bluecross,1,1960346.story?coll=chi-business-hed

Blue Cross HQ to go higher

By Bruce Japsen
Tribune staff reporter
Published July 25, 2006, 3:01 PM CDT

Another 24 floors will be added to the top of Blue Cross and Blue Shield of Illinois' Chicago-based headquarters on East Randolph Street to accommodate the health insurance company's major growth in recent and coming years.

Health Care Service Corp., parent of Blue Cross and Blue Shield of Illinois, said today that construction will begin later this year at the building site at 300 E. Randolph, pending approval of various permits.

The existing 33-story building already has 3 stories below Randolph and 30 stories above, and was erected in 1997 with the idea that Blue Cross would have the ability to add to the top. The structure was originally "designed and prepared" for an additional 24 stories to meet an expected need for more office space, the insurer said.

Since 1997, Health Care Service Corp., the fourth-largest health insurance company in the country, has expanded through mergers and acquisitions, adding Blue Cross and Blue Shield health insurance plans in Texas, New Mexico and Oklahoma since that time. Upon completion in 2010 to its "designed height of 57 stories" the building will accommodate 8,000 workers, the company said today.

http://www.chicagotribune.com/business/chi-060925bluecross,1,1960346.story?coll=chi-business-hed

[B]Blue Cross HQ to go higher




I hope they do this right, if the facade doesn't match it is going to look terrible...

SSDD

That is strange. I was just talking to a friend last week about how much I liked BCBS but looked forward to the day when they added the rest to it because I thought it looked just a bit on the squat side. This makes me happy and will look fantastic in between Aon and 340.

Grabbed these shots today from the corner of Dearborn and Hubbard. I don't remember which project this is for - is it that 30-something hotel?

http://img144.imageshack.us/img144/5862/rivernorth01ys3.jpg

http://img224.imageshack.us/img224/5032/rivernorth02ka0.jpg

http://img144.imageshack.us/img144/6299/rivernorth03ux9.jpg

http://biz.yahoo.com/prnews/060731/nym096.html?.v=38

Garmin Showcase to Open on Chicago's Famed Michigan Avenue
GPS leader brings innovative technology to the masses
Monday July 31, 5:00 am ET

Garmin International Inc., a unit of Garmin Ltd., today announced it will open a retail product showcase on the world-renowned "Magnificent Mile" in downtown Chicago, located at 669 North Michigan Avenue -- in time for the 2006 holiday shopping season. Garmin is the only GPS manufacturer to unveil a location specifically devoted to giving customers the world's most comprehensive GPS experience through hands-on product demonstrations and interactive kiosks, training, seminars, sales, and product support.

"This new Garmin presence on Michigan Avenue will allow us to promote our brand and our products in an entirely new way. We want to use this location as a destination to excite and energize our customers, generate buzz, and further propel sales among all of our retailers," said Dr. Min Kao, Garmin's chairman and CEO. "Whether you're searching for an address across town, traveling overseas on business, hiking in the woods, or running a marathon, GPS devices have become a 'must-have' because they improve people's everyday lives."

ProTen Realty Group, a leading tenant representation firm headquartered in Chicago, was instrumental in bringing Garmin to the Magnificent Mile. According to the Greater North Michigan Avenue Association, the district offers over 3.3 million square feet of retail space, 460 stores, 275 restaurants, two unique museums and entertaining attractions to more than 22 million visitors each year.

"This is an extremely exciting addition to Michigan Avenue that everyone will enjoy," said Camille Julmy, vice chairman of U.S. Equities Realty who represents 669 N. Michigan Avenue. "Garmin will fit perfectly in this block filled with other major long-term tenants."

Customers visiting Garmin will be greeted by a knowledgeable team that can answer questions and demonstrate a wide variety of Garmin products. Regularly scheduled training and seminars will also be held to educate current and future customers about the benefits of GPS and Garmin products. Customers may also purchase Garmin units and accessories at this location. In addition, the site will serve as a meeting and training facility for the Garmin retail network.

http://www.suntimes.com/output/business/cst-fin-build01.html

Apartments planned at Millennium Park
August 1, 2006
BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters


In the latest sign of Millennium Park's drawing power for real estate, investors have proposed a 40-story apartment tower for the northeast corner of Michigan and Randolph.

The building would occupy one of the most prominent spots in Chicago, overlooking the park and joining a row of distinctive towers along Randolph. Planned to have 80 units, or only two per floor, the building would arise on a skinny 6,000-square-foot parcel that now includes the La Strada restaurant.

Owners of the parcel, BJB Partners, have applied for a zoning change needed because of the building's height. It would be about as tall as the neighboring building, the former Doral Plaza at 151 N. Michigan, which is now called Millennium Park Plaza.

Developers have scrambled to capitalize on the park's success in drawing crowds. Many believe it has made the East Loop a showcase that will attract tourists, new residents and office tenants.

A BJB partner, Sean Barry, said his firm is undeterred by a slowdown in the housing market. The location and its views allow for a rental building that can charge premium rents, he said.

"The rental market is the best we've seen in five, six years," Barry said. "The demand at our other properties has just been unbelievable."

Park Ridge-based BJB owns many properties near the lakefront from downtown to Evanston, primarily apartments. Millennium Park Plaza is part of its holdings. It owns buildings with rooftop concessions on Waveland Avenue across from Wrigley Field.

Barry said his firm has hired the architectural firm Solomon Cordwell Buenz to design the building -- with a modern glass-and-steel facade that will justify its place in the skyline.

The zoning request starts a review process by city agencies leading to public hearings and a vote by the City Council. The process could take months. Barry, who said financing has not been secured, is hoping to break ground by spring of 2008.

La Strada, a popular Italian restaurant, would close but could reopen in the new building, Barry said. He said the restaurant has about a year to go on its lease.

Michael Mormando, an owner of La Strada, said he wasn't aware of plans for a new building. "I've been here for 26 years, and I don't plan on going anywhere," he said.

Bob O'Neill, president of the Grant Park Advisory Council, said the quality of the architecture will make or break the project. "Millions of people will be looking up at that building. It should be close to a work of art."

It would join a vista from the park that includes the One and Two Prudential Plaza buildings, Aon Center and the Blue Cross and Blue Shield Building that is due for a 24-story addition. A block to the north are two development sites: one due to get a 65-story Mandarin Oriental hotel and another that's a possible expansion site for the Fairmont Hotel.

..

http://www.chicagotribune.com/business/chi-0608050103aug05,1,1705915.story?coll=chi-business-hed

New towers to rise near Scottish Rite

By Susan Diesenhouse
Tribune staff reporter
Published August 5, 2006


The Scottish Rite Cathedral in the Gold Coast neighborhood has had its share of lives.

Built as the Unity Church in 1869, it survived the Great Chicago Fire two years later but with extensive damage. It rose again, rebuilt in Joliet limestone as a towering Gothic presence at North Dearborn Parkway and Walton Street. In 1911, the Scottish Rite, part of the Masons fraternal order, purchased it for $125,000.

Now, this Chicago landmark is poised to become the cornerstone of an approximately $450 million, 500-unit residential complex, one of the largest to go up in this tony North Side neighborhood in many years. The developers are seeking final city and community approvals, and hope to start construction in early 2007 or as soon as about 40 percent of the planned condominiums are sold.

Two weeks ago, the Enterprise Cos. and Mesirow Stein Real Estate Inc. signed a contract to pay about $60 million for the entire city block, 77,000 square feet, occupied by the cathedral, three 19th Century mansions and a parking lot.

The development team wants to put up two 40-story towers for the condominium units that will be priced from about $400,000 to $1.2 million. The project will conform to current zoning requirements, said Ron Shipka Sr., a principal of Enterprise.

It also will include 12,000 square feet of commercial space, and parking for about 570 cars of the building's residents and some neighbors. The historic mansions will be preserved, renovated and then sold as residences. The church facade will be restored and the building donated to a non-profit organization for its own use, Shipka explained.

"We started with the idea of a modern building, but it will be more traditional to accommodate neighborhood concerns and be consistent with the block's historic landmark structures," Shipka said. The Chicago firm Pappageorge/Haymes Inc. will be the architect.

Some neighbors still have issues to resolve. "We have to have a hearing and work it out with the community," said Ald. Burton Natarus (42nd).

But it's an opportunity to increase public revenue, he added, saying "it's a piece of property that has always been tax-exempt."

Frank Roth, chairman of the Scottish Rite real estate committee, expects the deal to close in October.

"We're excited about the sale, the future of the property," he said. "The developers care about the community, about keeping the structures and adding to them."

Equally as pleased are preservationists such as David Bahlman, president of Preservation Illinois, a private non-profit organization that saves historic architecture and sites.

Long aware that this is a prime development site, "we were worried that any plan would include demolition," Bahlman said. "We're delighted it doesn't. It's very important to the city and its architecture to save this Chicago landmark."

While the project might have great historic and artistic merit, it is also likely to have great market value as the largest luxury residence being created in that long-built-out neighborhood in recent years, explained Gail Lissner, vice president of Appraisal Research Counselors.

"The Gold Coast is a mature market with very little new product besides the occasional infill project," she said. "What makes the Scottish Rite site so good is that there's so little land available for development."

Indeed, during the past 10 years, only about 1,400 new units have been built in the Gold Coast, which has about 25,000 existing residential units. Meanwhile, in the South Loop about 10,000 units have been built since the mid-1990s, she estimated.

Two boutique luxury projects are among those now under construction in the Gold Coast. At 50 E. Chestnut St., there is a building going up with 34 units priced from $2.3 million to $3.1 million. At 50 Oak St., there is a project with 46 units priced from $600,000 to $3.5 million.

"In the Gold Coast, there's excellent demand for condominiums," Lissner said, "The trick is offering units of varying size so they're affordable to a wide range of buyers."

The Scottish Rite project, however, has a rare commodity among these buildings. At 40 stories, it can offer stunning views, said Tere Proctor, the sales director for the Trump International Hotel and Tower.

"That's a tremendous draw," she said. "At these prices, buyers want it all and should have it all."

To compete with thousands of luxury residential units going up in other city neighborhoods, Proctor added, the developers must offer "all the bells and whistles, and then some."

----------

sdiesenhouse@tribune.com

I posted this elsewhere, but whaddya gonna do? I figured some of you may not visit the general Chicago page:

Well, the Chicago Journal now has a new format and it is possible to post a comment to every article, opinion, etc posted.

This could be advantageous, if you think about it. If there is a particular topic or issue of interest (ie a lopsided pro-NIMBY article or viewpoint) it may not be a bad idea to chime in. Not a bad way to educate the public about the benefits of density/TOD as long as it's done in moderation and in a respectful manner.

Anyhow, you guys will certainly be seeing my comments there from time to time. The more people we reach, the better..

In the latest sign of Millennium Park's drawing power for real estate, investors have proposed[B] a 40-story apartment tower for the northeast corner of Michigan and Randolph.

If the market is so strong, why not make it 80?

I think if there's anywhere in the City that could support an 80 story rental building it would be precisely this location. The rental market has been so much stronger than ever before following the conversion of several buildings to condo in the past few years - I think they could absolutely fill this thing up no matter how tall it was.

But the footprint is so small...

- edit

^ That's one good lookin showroom...

I like how there's cars on upper floors. I'll hold off final judgement until I see a larger shot though.

There's another image as well
http://img117.imageshack.us/img117/7528/luxurymotors02325x244mj0.jpg

^ The fact that this is a multi-layered showroom is really cool, in my eyes. It is definitely eye-catching to see a bunch of luxury autos stacked up in a huge well-lit lobby overlooking the street. Bravo!

- edit

Well since SSP is being annoying right now...

155 North Wacker
50 floors
Seems somewhere in the range of 600-700 feet

http://img119.imageshack.us/img119/7264/155nwackerch0.gif

Well since SSP is being annoying right now...

155 North Wacker
50 floors
Seems somewhere in the range of 600-700 feet

http://img119.imageshack.us/img119/7264/155nwackerch0.gif

^ WOW!

Who, what, when, how?

I am assuming that is the much anticipated new John Buck building...

What is currently at that site??

A small retail and office building. Nothing special - around 4 or 5 stories. Its major tenant (a jeweler, I think) just moved out.

Excellent and thanks.

Now I just we could get rid of that fugly general growth building.....it really disrupts the flow of wacker

What do those guys do anyhow?? I think they are a real estate company but not sure
You'd think they might have a vested interest in having an impressive architectural statement since they are involved in real estate.

That I think is soenthing like 110 wacker so this new building puts it almost directly across the street

General Growth Properties mainly deals with malls.

General Growth has made it clear that it doesn't intend to move out, or replace its current HQ's.

General Growth has made it clear that it doesn't intend to move out, or replace its current HQ's.

general growth can make their intentions as clear as they want to, but every person (and corporation) has their price.

What is currently at that site??

The building on the west part of that site (155 N Wacker) is a 1950-ish beige brick box that needs to be put out of its misery.

However, there are few nice low-rise older buildings at the eastern part of the site.

The building on the west part of that site (155 N Wacker) is a 1950-ish beige brick box that needs to be put out of its misery.

However, there are few nice low-rise older buildings at the eastern part of the site.
Corner of Wacker & Randolph
http://img204.imageshack.us/img204/7441/p8210143rw5.jpg

Buildings along Randolph
http://img224.imageshack.us/img224/8606/p8210144wm0.jpg

Same buildings taken from the parking lot across Randolph
http://img175.imageshack.us/img175/2802/p8210145bl1.jpg

Carl Sandburg strolls along Wacker Drive on August 19, 1957 (http://www.suntimes.com/photos/galleries/realchicago/1950s/43.html)

^ In this picture of Carl Sandburg you can see the building at Wacker & Randolph on the right side. This doesn't have much to do with anything other than realizing that older buildings are a link to the past.

I believe the low-rise buildings will remain, except for the westernmost one (with the Salad Spinners). The larger rendering on Emporis clearly shows at least one or two of those lowrises remaining.

I also see Shutan Camera moved out of the middle building, too bad. They always gave me good prices on film. Is Giordano's still there? I can't tell.

Same buildings taken from the parking lot across Randolph
http://img175.imageshack.us/img175/2802/p8210145bl1.jpg[/QUOTE]

That corner building at the far right, i.e., the one with the light blue panel at the far right edge, was constructed immediately after the Great Fire, in roughly 1872-74.

This building houses the Showmen's League of America, and had a quaint sign with circus-like lettering at the corner of the building for many decades. The first president of the Showmen's League of America was Buffalo Bill, who passed through town frequently and who put on huge Wild West Shows at the West Side ball park, on which site the gothic red-brick UIC College of Medicine now stands.

The Showman's League is also famous for erecting a monument in the Chicago suburbs after the famous "Circus Train Crash" that killed many performers and animals.

Anyway, the Showman's League building had ugly panels on its facade since the 1950's. Then, in 2003, those panels were removed, revealing the beautiful original brickwork and limestone window surrounds, featuring arched window lintels with apical keystones that were common in the 1860's and 1870's.

Sadly, the owner then sprayed the whole building with gray dry-vit, covering up 100 per cent of the original facade. They put little elephants here and there to give it a circus theme. However, dry-vit with elephants is still dry-vit.

August 25, 2006

River North Center Hotel
http://img165.imageshack.us/img165/2060/ayu1.jpg

Palmer House facade to stay
Glass storefronts ruled out, but developers still plan to remove the 79-year-old landmark's famed canopy over the State Street sidewalk.
By Ron Grossman
Tribune staff reporter
Published August 30, 2006


State Street fans still reeling from the loss of Carson Pirie Scott got a bit of solace Tuesday, with news that Palmer House Hilton developers have backed off a plan to poke a two-story hole in the historic building's facade for steel-and-glass storefronts.

City officials say the developers dropped the second-story renovation plans after preservationists howled at the proposal, put forward in May as part of a deal that would give the 79-year-old building landmark status.

RSS



Photo


Palmer House canopy (Tribune photo by Kuni Takahashi)
August 30, 2006

But the glass is only half full for traditionalists.

Thor Equities, the developer, still has plans to tinker with the some of the building's most distinctive features, taking down its massive State Street canopy and reducing the size of the canopy on Monroe Street.

Representatives of Thor could not be reached for comment.

For generations, the Palmer House was a mecca for visitors coming to Chicago for an annual shopping and entertainment expedition. It long was flanked by department stores of all varieties, one of the last of which, Carson Pirie Scott, announced its closing last week.

The Commission on Chicago Landmarks had voted 5-2 to allow the new storefronts on the Palmer House as part of its landmark recommendation.

Opponents had argued the renovation project would scar the hotel founded by Potter Palmer, the 19th Century real-estate magnate who established State Street as Chicago's commercial rialto.

Blueprints for the rehab, which need approval by the City Council, are now being revised, according to Constance Buscemi, spokeswoman for the city's Department of Planning and Development.

"We have been told that they [Thor] are not going forward with the renovation of the second floor," Buscemi said. "They truly do want to work with the city's landmark commissioners, who expressed some concerns about their plans."

Jonathan Fine, president of Preservation Chicago, saluted news of that vote's nullification.

"Thor has taken a great leap forward," Fine said. "We applaud them for it."

James Peters, director of planning for the Landmarks Preservation Council of Illinois, another group vocal in its objections to the original plans, was more reserved in his reaction to news of their modification.

"It's a great victory," he said. "But it's also a case of a step forward, and a step backward."

Peters and Fine both noted that the Palmer House canopies not only give protection from Chicago winters, they also provide long-lasting visual memories of trips to the Windy City.

"Holabird and Roche knew what they were doing when they designed the canopies," said Fine. "They don't need to be second-guessed on the Palmer House."

Holabird & Roche, a distinguished Chicago architectural firm that helped make the city internationally renowned as the birthplace of modern architecture, designed the present Palmer House, which opened during the 1920s.

It is the hotel's fourth incarnation. A predecessor was dedicated in 1870 as a wedding present from Potter Palmer to his wife, Bertha, a grand dame of Chicago society. Lost to the Chicago Fire the following year, it was rebuilt in 1873.

The battle over its latest proposed alteration heated up in July, when preservationists learned that the developers had applied for a property tax break as part of a program that encourages historic preservation.

Fine noted that Preservation Chicago considers altering the canopies to be unnecessary, both aesthetically and economically. He estimates the canopy downsizing would cost hundreds of thousands of dollars.

"We preservationists get criticized all the time for spending other people's money," Fine said. "But here we're advising them not to spend the money."


Copyright © 2006, Chicago Tribune

^ Great news

Not really. I think the loss of the canopies is devastating.

The next Friends of Downtown Brown Bag presentation

Thursday, September 7th at 12.15
Chicago Cultural Center
Millennium Park Room, 5th floor southeast

Chicago Federal Campus Expansion

J. David Hood of the General Services Administration will present expansion and improvement plans for the Chicago Federal Center. He will discuss the process that led to the acquisition of an expansion site on State Street, the current plans for the site and how the expansion will serve the public, enhance State Street and the Chicago Loop, while complementing Mies van der Rohe’s original Federal Center design.

The next Friends of Downtown Brown Bag presentation

Thursday, September 7th at 12.15
Chicago Cultural Center
Millennium Park Room, 5th floor southeast

Chicago Federal Campus Expansion

J. David Hood of the General Services Administration will present expansion and improvement plans for the Chicago Federal Center. He will discuss the process that led to the acquisition of an expansion site on State Street, the current plans for the site and how the expansion will serve the public, enhance State Street and the Chicago Loop, while complementing Mies van der Rohe’s original Federal Center design.
Sounds promising. Federal funds are usually generous, the die having been cast by Mies and Calder.

I am worried about this expansion of Federal Government building. Fed building are notorious for their street level disconnect, that is they are often very removed from the street upsertting the flow of street level pedestrian traffic. Additionally, they are ghost towns after hours, on weekends, and holidays. I am not convinced this is a good development for state street.


Does anyone have any renderings, I am not familiar with this design

There is no design to my knowledge, only vague info like there might be one or two towers somewhere around 35ish floors. This project is well into the future, like at the end of the decade maybe.

September 6, 2006

Silver Tower
http://img49.imageshack.us/img49/1969/noticeze0.jpg
^ Notice posted at the parking lot.

http://img390.imageshack.us/img390/10/p9060063iv8.jpg
^ Haven't started construction yet.

30 West Erie
http://img419.imageshack.us/img419/568/p9060064oj2.jpg

30 W Erie...almost forgot about that one. Hopefully it is as handsome (IMO) as the rendering depicts.

Some info on the expansion plans from SSP

Attended the CAF bagged lunch presentation on the Federal Campus Expansion:

Short Term 2006-07:

Renovate 202 S. State, will be done in Oct 06

Vacate Quincy Court of vehicle access
- create a pedestrain environment

Find new tenants for 18 W. Jackson

The Berghoff building is not involved with their plans

Mid-Term 2008-2010:

beautify State St building facades
- provide new screening and interim decoration

renovate all Store fronts

possible demolition of 208-214 S. State

Long Term 2011-2015:

keep 202 & 220 S. State and add new building in between

new tower/building that currently occupies 10 W. Jackson, 18 W. Jackson, and 230 S. State

keep retail on State

No photos so if anyone else was there can add them or more details that would be great.

September 14, 2006

Avenue East
http://img117.imageshack.us/img117/1673/aear0.jpg

River North Center Hotel
http://img117.imageshack.us/img117/4412/htdg0.jpg

http://img220.imageshack.us/img220/3660/p1010096uo2.jpg

215 West Washington
http://img115.imageshack.us/img115/4627/s1jt7.jpg

155 North Wacker
http://img243.imageshack.us/img243/4889/p1010082ue9.jpg
^ Future site of 155 N Wacker. The tower will replace the yellow brick building on the left side of the picture. A plaza will be constructed on the eastside taking out the buildings to the right.

http://www.suntimes.com/business/76879,CST-FIN-caa29.article

Chicago Athletic Assoc. mulls high-rise plan
Might sell building near Millennium Park

September 29, 2006
BY DAVID ROEDER Business Reporter

The Chicago Athletic Association is negotiating with developers who want to buy its property near Michigan Avenue and Madison, and use part of it for a condominium tower that would overlook Millennium Park.
The association, one of the city's oldest private clubs, would continue at its main building, 12 S. Michigan. But its building at 71 E. Madison, which connects to the Michigan side, would be demolished.

Replacing it would be a tower possibly in the 50- to 70-story range. That's the crucial element of a proposal submitted to the club's board by HSA Commercial Real Estate, a Chicago firm with investments in retail, industrial and office properties.

While HSA isn't known for residential work, it has partnered with a condo builder, Robert Horner, in its presentations to the club. Also in its team is architect Daniel Coffey, whose work here has included renovations of the landmark Oriental Theatre and Medinah Temple.

Two competing offers also are before the board, but sources said the HSA team's bid is the front-runner. The other bids are from Cleveland-based Snider-Cannata Interests and Atlanta-based Songy Partners, both of which call for renovating the buildings into a boutique hotel. They would not build a high-rise.

All value the club's property at around $20 million. But sources said the HSA plan includes pledges of future aid to the club, raising the value of its package to about $33 million.

It would be similar to an arrangement another private enclave, the University Club of Chicago, reached with developers who are building a 71-story tower at 21-39 S. Wabash. The condo tower will be connected to the club at 71 E. Monroe, which will be offered as an amenity to condo buyers.

The sale could be financial salvation for the athletic association, known as the CAA. It has lost much of its upper-crust membership in recent years. Aging demographics and lifestyle changes have diminished the appeal of some clubs built around dining and social events.

As its membership has fallen, maintenance and services at the club have suffered, many members said. Some have expressed fears that the club, which dates from 1890, is close to running out of cash.

An attorney for the club, Stephen Berger, said the board considers all three proposals as close in merit. While HSA is offering a subsidy toward club operations, those payments are well into the future, and terms are still under discussion, Berger said.

He said the board hopes to bring a sale recommendation to the members for a vote on Nov. 13.

Berger declined to discuss the association's financial picture, saying only, "This is a good opportunity for the club to realize the value of the asset,'' its real estate.

Its location is directly west of Millennium Park, which has given a push to new construction in every direction of its shining Bean artwork except toward the lake.

The club's 18-story building at 71 E. Madison contains about 50 hotel rooms for members' use, and a small number of rented offices. The HSA proposal would replace that structure with a tower holding about 200 condos and another 200 or so hotel rooms under an independent operator.

The sale would leave the club with its current dining and athletic facilities, with money to renovate them and a potential source of new members from the connected skyscraper.

"This sounds like a fabulous solution," said a member who supports the HSA bid. "Everything that counts is saved."

Horner and Coffey referred inquiries Thursday to HSA executives, who could not be reached.

Their plan could require careful maneuvering at City Hall. The CAA property is within the city's official Michigan Avenue historic district, so designated because of its famous street wall that exhibits work of important architects.

Sorry if this was already posted somewhere.

http://chicagobusiness.com/cgi-bin/news.pl?id=22316

Texas firm wants to buy downtown site, build apartments

A Texas apartment company new to Chicago is negotiating to buy a property just east of the Merchandise Mart where it plans to build a 300-plus unit apartment building.

San Antonio-based Lynd Co. is in “advanced discussions” to buy the parcel at Wells and Kinzie streets from Sterling Bay Cos., the Chicago-based real estate firm that owns the lot, says Sterling Bay Principal Andy Gloor.

Mr. Gloor cautions that the deal could still fall apart and says a retailer he declines to identify has also expressed interest in the site, a possible plan B if Lynd walks away.

Sterling Bay took over the property, currently a parking lot, as part of its 2004 acquisition of the former Helene Curtis building immediately to the south, at 325 N. Wells St. The firm had considered a hotel on the site and even drew up plans for a 350,000-square-foot office condominium building there, after its successful conversion of the Helene Curtis building into office condos.

A Lynd executive did not return phone calls for comment. Lynd owns about 8,000 apartments, mainly in Texas and the Southeast, and manages 25,000, but none in Illinois, according to its Web site.

Hmm... CAA's Madison Annex is RIDICULOUSLY small.

Guys, if they build anything, we're talking something on the scale of Mather Tower. But, it will be obscured by Willoughby Tower, so it will have to be TALLER! This seems like a poor place to build a tower... Remember, this is on the SAME BLOCK as Legacy. I'd much prefer to see them gut the middle building on the next block north.

http://www.suntimes.com/business/roe...eder04.article

Athletic Assn. could lock horns with clout-heavy Walshes

October 4, 2006
BY DAVID ROEDER Sun-Times Columnist
A new high-rise near Michigan Avenue could turn into a Clash of Clout. The Chicago Athletic Association, as I reported in the Sun-Times last week, is considering an offer for its property that could produce a new 50-story building near Michigan and Madison.
That could be big trouble for a different high-rise plan. It's called the Legacy at Millennium Park, and it's due to be built at 21-39 S. Wabash. Construction on the athletic club property, in the same block, could partially block views from many of the Legacy's units.

The Legacy is an investment of Matthew and Daniel Walsh, friends of Mayor Daley, and Mesa Development LLC. The luxury building is now being marketed, and construction is expected to begin next year.

Negotiating for the athletic club site is a venture that includes HSA Commercial Real Estate. The building would go up behind the main club building at 12 S. Michigan, if city authorities allow construction in a landmark district.

To head off problems, HSA has agreed to hire the law firm Daley & George to handle the zoning. The firm, whose name partner is mayoral brother Michael Daley, also worked for the Legacy.

Partner Jack George, an athletic club member, said he had no idea if the Walshes would object to a tall new neighbor. "I have agreed to represent HSA if they are successful in their negotiations with the club. The club needs something like this so it can keep operating,'' George said.


GOING UP: AMLI Residential, owner of apartment buildings in many suburban markets, is at last getting into downtown. It plans to start construction by yearend on a 24-story apartment building at 900 S. Clark, just north of the Target. Monthly rents are expected to range from $1,300 for a studio to $2,400 for a three-bedroom. The architecture is by Solomon Cordwell Buenz. The building will contain 440 units, and AMLI reports 70 percent will be studios, convertibles or one-bedrooms.


EYE ON THE SKY: Stuff is happening with Chicago's three tallest buildings. Here's what I know:

John Hancock Center: The offer book is being circulated for the office portion of the building, and respondents are asked to indicate their price by the second week of November. Shorenstein Properties LLC is selling its piece of the landmark. About half the building is residential condos and those remain with their owners.

Insiders expect offers of about $375 million to $390 million. Eastdil Secured LLC is marketing the property. In 1998, Shorenstein bought the Hancock for $220 million. Its resulting profit makes the $8.6 million it agreed to pay as part of the 2002 scaffolding tragedy seem a pittance.

Sears Tower: The ownership team including New Yorker Joseph Chetrit is trying mightily to refinance debt that comes due in a few months. But sources say the team isn't likely to succeed and that the building could go up for sale.

Aon Center: The top of the building is turning pink this month. Special lighting commemorates Breast Cancer Awareness month. The cause is great, but I'm glad nobody's trying pink on the Sears.

[url]That could be big trouble for a different high-rise plan. It's called the Legacy at Millennium Park, and it's due to be built at 21-39 S. Wabash. Construction on the athletic club property, in the same block, could partially block views from many of the Legacy's units.

This is a Miami issue...its nuts to assume a new devolopment in a dense downtown area like Chicago won't eventually be obstructed by a new devolopment. So what if something partially obstructs Legacy's new condo owner's units...they should of read the fine print about view obstruction liability...and as far as the potentially partially obstructed views affecting sales at Legacy...Legacy's design will sell itself, good views or not.

There is no fine print. The ads for Legacy SPECIFICALLY guaranteed forever-unobstructed views, because the buildings along Michigan are landmarked. The same for Park Michigan, Heritage, Millennium Tower, and any other recent residential property on Grant Park West there.

That's why this is a problem.

Also, like I said, any design for CAA's Madison Annex will have to be rather unique. I'll wait until I see the design before I pass judgment. Unless the tower is mushroom-shaped, it can't possibly block too many views.

Does Buck stop here?
Developer's latest Wacker project tests limits of building boom

By Thomas A. Corfman

Developer John Buck is looking to extend his string of Wacker Drive towers with what would be his riskiest development yet.

Mr. Buck's firm and New York-based Skadden Arps Slate Meagher & Flom LLP have the outlines of an agreement to make the law firm's Chicago office the anchor tenant of a proposed skyscraper at 155 N. Wacker Drive, his third in seven years, sources say.

Marian Wexler, head of Skadden's local real estate practice, confirms the negotiations but says the new development is one of several options for the firm, which has about 1,750 lawyers worldwide, a tenth of them in Chicago. Skadden could also renew its lease at 333 W. Wacker Drive. A decision is expected within a month, she says.

Yet Skadden is much smaller than the typical anchor tenants that have launched the office high-rises that transformed the Loop over the past five years. The firm would lease less than a fifth of Mr. Buck's 1-million-square-foot tower, far below the 40% to 50% widely believed to be the threshold for a construction loan as big as the estimated $275-million one this project would likely require.

The real estate industry is watching to see if Mr. Buck can finance a huge tower with so little pre-construction leasing. If he does, there may be no end to the downtown building boom, which has continued despite relatively high office vacancy rates. But if he can't, there may be a pause in the new construction, to the relief of the landlords whose tenants have defected to newer, fancier towers.

"Lenders and developers in this last cycle have generally applied more sensible principles, and this one seems like a stretch," says George Kohl, Midwest managing director with Dallas real estate firm Trammel Crow Co., which isn't involved in the talks.

Mr. Buck, chairman of Chicago-based John Buck Co., was unavailable for comment last week. Drew Nieman, the Buck principal handling the talks with Skadden, declines comment.

BETTING BIG ON MARKET

But Mr. Buck is making a "Field of Dreams" bet that credit-worthy, mid-sized tenants will continue to pay premium rents for the sizzle and technology of new buildings, and that the real estate investment market will stay hot. He reaped record-setting prices when he sold his most recent projects at 1 N. Wacker Drive, completed in 2001, and 111 S. Wacker Drive, finished last year.

Less pre-leasing boosts the risk not only for the banks but also for the Buck-managed fund that would invest in the project along with partner Morgan Stanley & Co., the New York investment bank.

"If you don't have 50% pre-leasing, it just means you have to put in more equity," says Bruce Cohen, CEO of Chicago real estate finance firm Wrightwood Capital LLC.

The proposed skyscraper would be completed before Skadden's current lease expires in mid-2009. The firm is an attractive tenant in part because of its 2005 revenues of $1.61 billion, the highest of any law firm in the nation, according to American Lawyer magazine. Although a co-anchor tenant would be ideal, a second, credit-worthy tenant that would bring pre-leasing to about 25% of the space could be critical to starting construction, sources say.

http://img355.imageshack.us/img355/996/og101606fev8.gif

Any news on the ridiculously-thin tower, supposed to rise where La Strada is now, in front of Doral?

I went past La Strada today, and thought of this proposal.

why would they knock down a whole row of buildings at 155 n wacker when there is a parking lot across the street?

thats really stupid, the yellow building is ugly but the other ones look fine,
what the hell is going on?

and they are knocking down the other buildings for a plaza?
that is so so stupid, unless the buildings are unsound.

http://img355.imageshack.us/img355/996/og101606fev8.gif

Interesting graphic. I've been to 1-6, all of which have gorgeous offices with spectacular views. The Hyatt Center is the most impressive.

why would they knock down a whole row of buildings at 155 n wacker when there is a parking lot across the street?

There site across the street is for a future Buck office tower.

There site across the street is for a future Buck office tower.

that building on the corner is cool, its so small
and the other yellow one next to it is the nice,
the others arent so great,

but doesnt this seem too rash and crazy?
i dont think we need more plazas, does anyone else?
is there a rendering for this buck office tower?

does someone own the whole block or something?

too much destruction in chicago IMHO,

that building on the corner is cool, its so small
and the other yellow one next to it is the nice,
the others arent so great,

but doesnt this seem too rash and crazy?
i dont think we need more plazas, does anyone else?
is there a rendering for this buck office tower?

does someone own the whole block or something?

too much destruction in chicago IMHO,


mohammed wong, you are right about that corner building being cool. In fact you should have seen it before they sprayed it with that gray dry-vit. There is terrific orginal detailing under that gray coating.

This building, i.e., the one with the light blue panel at the far right edge, was constructed immediately after the Great Fire, in roughly 1872-74.

This building houses the Showmen's League of America, and for decades had a quaint sign with circus-like lettering at the corner of the building at the third floor. By the way, the first president of the Showmen's League of America was Buffalo Bill, who passed through town frequently and who put on huge Wild West Shows at the West Side ball park, on which site the gothic red-brick UIC College of Medicine now stands.

The Showman's League is also famous for erecting a monument in the Chicago suburbs after the famous "Circus Train Crash" that killed many performers and animals.

Anyway, the Showman's League building had ugly panels on its facade since the 1950's. Then, in 2003, those panels were removed, revealing the beautiful original brickwork and limestone window surrounds, featuring arched window lintels with apical keystones that were common in the 1860's and 1870's.

Sadly, as soon as the panels were removed, revealing the true beauty of the building, the owner sprayed the whole building with gray dry-vit, covering up 100 per cent of the original facade. They gave the building some blue trim, which you can see above, and put little elephants here and there to give it a circus theme. However, dry-vit with elephants is still dry-vit.

Interesting graphic. I've been to 1-6, all of which have gorgeous offices with spectacular views. The Hyatt Center is the most impressive.

I agree. I went to a meeting on one of the top floors there once. Gorgeous view. I think it is better than the view from the mid-day club on the Chase building down the street.

http://www.chicagotribune.com/business/chi-0610210062oct21,0,5571422.story?coll=chi-business-hed

Venerable club eyes sale of buildings
Chicago Athletic Association wraps up talks with developers for hotel-club project

By Susan Diesenhouse
Tribune staff reporter
Published October 21, 2006

With mixed emotions, members of the venerable but financially strapped Chicago Athletic Association this week completed negotiations with two developers to sell their landmark home, a vital element of the historic South Michigan Avenue streetscape.

On Monday, club members will review the proposals from the developers, who likely will pay about $22 million for the 265,000-square-foot, two-building property at 12 S. Michigan Ave. and 71 E. Madison St.

In what will probably be an approximately $75 million project, the chosen company will transform the stately turn-of-the-century structures into a hotel and athletic club, said association board member Michael Raimondi.

Club members will probably decide on the winning proposal by mid-November, he said.

The association hopes to purchase or lease back about 55,000 square feet of the property overlooking Millennium Park for its own use.

While happy that the complex, built in 1890 (12 S. Michigan Ave.) and 1907, will be refurbished, the association is bitter to realize that the club where city leaders such as Marshall Field, Potter Palmer and Cyrus McCormick once dallied can no longer endure in all its former glory.

"One must be an optimist, but it's a challenge to watch a great club deteriorate," Raimondi said of the facilities, where members dined, boxed, played basketball and swam. "It has the usual ailments of a 100-year-old club in a society that now values cocooning themselves at home more than exchanging ideas with other people.

"Times have changed. We can't go to our members and say, `Remember when Granddad had a grand time here? Can you give us $50 million?'"

The club now has about 800 members, Raimondi said, but was filled to its 3,000-person capacity when it opened its doors in 1890 and had a 10-year waiting list.

The association's decision to sell the property now, he added, "was driven by pure economics. It's difficult for a declining membership to maintain such a large facility."

Bidding for the project are developers Songy Partners LLC of Atlanta and Snider-Cannata Interests of Cleveland. Another developer dropped from contention is Chicago-based HSA Commercial Real Estate, whose plan entailed demolishing one building to put up a residential condominium high-rise, Raimondi said.

"It was an interesting idea, but not one in favor with preservationists or City Hall," he noted.

Songy, which would team up with architect Gensler and contractor Walsh Group, has proposed retaining both buildings.

The exteriors would be restored. At the 18-story Madison Street building, the interior would be gutted for an approximately 200-room hotel, ballroom and athletic club. Part of the 10-story Michigan Avenue structure, with its ornate mosaic, marble, stained glass and mahogany features, would be retained for the association's use. The rest of the interior also would be gutted and rebuilt with hotel facilities, said Chief Executive David Songy.

Snider-Cannata did not return a call seeking comment.

The association hopes that the portion of the Michigan Avenue building that it retains will include some plaster ceiling medallions, carved mahogany staircase, wood-paneled walls, fencing salon and squash court, said Raimondi.

But as a realist, he added, "once we sell it, we can't say, `Would you mind not demolishing this or that?'"

CHICAGO PLAN COMMISSION
121 North LaSalle Street
City Council Chambers -City Hall
Chicago, Illinois 60602
December 14, 2006
1:00 P.M.
TENTATIVE AGENDA

A proposed Residential-Business Planned Development Application submitted by DAGS Desplaines, L.L.C. for the property generally located at 659 West Randolph Street. The applicant proposes to construct an 18-story building containing approximately 230 dwelling units, 300 off-street parking spaces and ground-floor retail/commercial space.
(27th Ward)

A proposed Residential-Business Planned Development Application submitted by Fairbanks Development Associates, L.L.C. for the property generally located at 530-548 North Fairbanks Court. The applicant proposes to construct a 58-story mixed-use building containing approximately 191 hotel rooms, 176 dwelling units, ground-floor retail, and 318 off-street parking spaces. (42nd Ward)

Bvic are these new proposals or old proposal going for approval???

Jupiter Gets Nod for $162M Apartment Asset

By Robert Carr of GlobeSt.com

Thursday, December 07, 2006 - CHICAGO-Don Smith, chief executive officer with Jupiter Realty, says plans for his $162-million apartment tower at 215 W. Washington were recently approved by the city Planning Commission. He presented the plans for the project Dec. 6 at the first Real Estate Lenders Association Inc. meeting to be held in Chicago.

Smith says he’s optimistic about the class A rental market in the city. Though a record number of units are planned for delivery by 2010, about 4,000 units were dropped from the charts when developers went conversion crazy in the past few years, evening out, and even creating, demand. “Rent spikes are back, concessions have been dropped, and the former hold time of 10 years has been shattered,” Smith says. The only uncertainty, he says, rests with increasing construction costs.

New apartment construction is everywhere in the city, Smith says. He listed projects in various stages of development, including: the Streeter at 345 E. Ohio, with 40% of its units preleased; Sky55 in the South Loop, 511 units and senior apartments at 1255 S. Michigan Ave.; 300 S. Canal, 451 units by Fifield; Kingsbury Plaza, next to the East Bank Club, with 421 units expected to be delivered by mid-2007; the Tides, with 607 units ready for delivery in early 2008; 1401 S. State, also in the South Loop, with 278 units expected by 2008; and 900 S. Clark, with 400 units coming online within months. More than 4,000 more units are in the planning stages, he says.

The 215 project, at Washington and Wells, is a little odd, he says, because very few apartment projects are done in the heart of the Loop. The company worked for three years to put the project together, he says, including assembling three parcels of land. One parcel featured the oldest parking garage in the city, but Jupiter convinced the city to allow the demolition, Smith says.

In its place, Smith says the building will have 38 floors, with the first floor being storefront retail (“Required of every building Downtown, these days,” Smith says) and the next 11 floors being a parking garage. The entire project will cost about $162 million, but the garage and retail will be sold to Interpark to run for $40 million, Smith says.

“We view our market as the 120 million sf of office tenants and corporate tenants nearby, as well as some expectation of student interest,” Smith says. He says the project will cost about $282,000 per unit to build, and the company expects to rent the units for $2.90 per sf when it’s complete in 2010, and a projected return on investment at about 6.62%. Smith says the units will have high-end amenities, and will be condo-ready, though he says he’s not counting on conversion.

^ I wonder if he's got financing yet

In its place, Smith says the building will have 38 floors, with the first floor being storefront retail (“Required of every building Downtown, these days,” Smith says) and the next 11 floors being a parking garage.

Is this an established doctrine at the Planning Dept? I sure hope so, it oughta be a give-in.

How do the latest generation of office buildings get away with it? (1 S. Dearborn, Hyatt Center, UBS, etc.)

1 South and Hyatt both have ground floor retail space. At 1SD there's the Fifth/Third Bank located on the Madison facade of the tower and there's also (supposedly) room for a restaurant in the tower's southwest corner. Hyatt's also got a bank (in the small annex building to its north) - I believe it's a Charter One?

These buildings may not have wall-to-wall retail presence, but, there is some leeway given because it's only fair that their own lobby dominate the building. The rule is, basically, in place to prevent blank walls and parking from being at street level.

..

Caffé RoM On Board at MetraMarket
Transit-oriented retail center attracts new restaurant concept

U.S. Equities Realty
has signed the first restaurant at
MetraMarket, its new transitoriented
West Loop retail and dining
development. Caffé RoM, a new concept
by Café Baci owner Joe DiCarlo and
partner James Louras, will combine a
European coffee bar, serving specialty
coffees, pastries, paninis and gelato,
with a contemporary wine bar open late
afternoon and into the evening.

Located adjacent to Ogilvie
Transportation Center, MetraMarket
will transform two underutilized city
blocks — between Washington, Lake,
Canal and Clinton streets — into a lively
hub of street-level shops and restaurants
linking the Loop with the rapidly
growing Near West neighborhood. The
100,000-square-foot development targets
the exploding West Loop residential and
office markets, as well as daily commuter
traffic. About 95,000 commuters pass
through Ogilvie Transportation Center
daily, while another 2,260 use the nearby
Chicago Transit Authority Green Line
station at Lake and Clinton.

“This location gives Caffé RoM ready
access to a huge volume of commuters,
neighborhood residents and office
workers,” said DiCarlo. “We have been
working on the Caffé RoM concept for a
couple years and believe MetraMarket is
an ideal site.”

Pronounced the same as Italy’s
capital city, RoM recreates the fine
coffee bar experience found in Italy
including the design, which features
custom-made bars created by the
finest Italian designers and craftsmen.
Early mornings, RoM will offer a
variety of coffees, juices and pastries.
Lunch includes a variety of gourmet
sandwiches and freshly made salads.
Mid-afternoon choices consist of
specialty coffee drinks, imported Gelato
and fine chocolates with afternoon and
evening offerings of wine, beer and
specialty items like champagne, Peroni
beer and Campari.

“We are excited that MetraMarket will
be bringing new concepts to the City,
first with the French Market and now
with Caffé RoM,” said Camille Julmy,
vice chairman of U.S. Equities, the
developer and exclusive leasing agent for
MetraMarket. “And, we expect to be able
to announce another restaurant at the
development in the near future.”

Slated for late 2007 opening, Caffé RoM
will occupy 2,900 square feet on Canal
between Randolph and Washington.
Patrons will be able to enter directly
from Canal as well as from inside the
Metra concourse.

Plans for MetraMarket include
additional restaurants, an assortment
of retailers and an open public space
for dining and socializing, as well as
ground-level parking for up to 100
vehicles. Phase I of the development is
50 percent pre-leased.

http://img464.imageshack.us/img464/8884/mmcafelgke8.jpghttp://img464.imageshack.us/img464/9818/mmwinebarlgdd4.gif

At Deadline

Architect Goettsch hired for Aon redo

The possible residential conversion of the top floors of Aon Center is taking a step forward. Chicago architect James Goettsch has been hired by landlord Wells Real Estate Funds to work up plans for the trophy tower overlooking Grant Park. Goettsch declines to comment, but the project could include as much as the top 13 floors of the 80-story structure at 200 E. Randolph. [Thomas A. Corfman]

http://www.chicagotribune.com/business/chi-0701100054jan10,0,1835855.story?coll=chi-business-hed

CHOO'S SHOES TO OPEN FEB. 1: As previously reported in the Tribune, ladies looking for the latest high-priced, high-heeled shoes soon will be able to shop at Jimmy Choo's first local store. Now for further details.

The 1,800-square-foot store geared for upscale fashionistas will open Feb. 1 at 63 Oak St., said Caroline Berthet, U.S. public relations director for London-based Jimmy Choo Corp.

Berthet said the opening is part of a worldwide expansion and the introduction of a new design concept. Inspired by a 1940s boudoir, the store will feature velvet sofas and crystal chandeliers.

"Chicago is one of the few U.S. markets that has a sophisticated, affluent client base well matched to our brand," she said.

"This is a coup for Chicago," said Sharon Kahn, a first vice president at full-service real estate firm CBRE, who specializes in retail. "Jimmy Choo is doing an expansion on luxury boulevards around the country."

Since the fall, the shoe retailer, which gained some cachet because its footwear was favored by characters in the television series "Sex and the City," also has opened shops in Miami Beach and Las Vegas.

With new development planned for Oak Street in the near future to replace the old Esquire movie theater, "It's important to create excitement and keep up the quality of the street," Kahn added.

"It's particularly good for the landlord that there was no down time between the new and old leases," said Jacqueline Hayes, chief executive of Jacqueline Hayes & Associates Ltd., who represented the property owner.

January 17, 2007

30 West Erie

http://img45.imageshack.us/img45/5091/dsc0266copyjx3.jpg http://img45.imageshack.us/img45/1584/dsc0267copycq1.jpg

http://chicagobusiness.com/cgi-bin/mag/article.pl?article_id=27169&bt=deadline&arc=n&searchType=all

Loop retail rebound? Vacancy rate dips
Spurred by new shopping and residential developments around Millennium Park, the retail vacancy rate in the Loop fell last year to the lowest since 2002. At 14.6%, the vacancy rate was down from 16.7% in 2005, according to a new report by Stone Real Estate. The Chicago-based retail brokerage predicts another drop in 2007. [Eddie Baeb]

---------------------
http://chicagobusiness.com/cgi-bin/mag/article.pl?article_id=27166&bt=barneys&arc=n&searchType=

Barneys move may shake up Oak
Block of boutiques could see development wave

By Thomas A. Corfman and Eddie Baeb

Barneys New York is close to a deal that would move its Oak Street store across the street and double its size in a proposed new building, a development that would signal a dramatic transformation of the tree-lined block of quiet boutiques and salons.

The luxury department store would lease about 100,000 square feet in a five-story structure to be built on the site bounded by Oak, Rush and State streets, according to sources familiar with the negotiations between Barneys and developer Mark Hunt of Chicago-based M Development LLC. Mr. Hunt declines to comment.

Barneys would move in two years when its lease expires on its 46,000-square-foot store at 25 E. Oak St.

The Chicago location is a fraction of the size of Barneys' flagship stores in Manhattan and Beverly Hills, Calif. A spokeswoman for Barneys, a division of New York-based Jones Apparel Group Inc., didn't return calls for comment.

Oak Street, once a quaint strip of gray-stone and red-brick buildings, is already a haven for national and European luxury retailers such as Italian clothier Prada and French leather-goods designer Hermès. But a Barneys deal would be a key step in a wave of new development along Oak Street, including possibly the retailer's current site.

That, in turn, could boost other developers' chances of luring high-end retailers to nearby projects, such as the Elysian Hotel, under construction at Rush and Walton streets, and a proposed mixed-use development for a site at State and Walton that includes the Scottish Rite Cathedral, say real estate brokers not involved in the Barneys deal.

"With the lack of supply of high-rent, specialty-store space along Michigan Avenue, this deal could open up significant opportunities for new fashion and high-end-goods retailers to come to Chicago," says Stanley Nitzberg, a principal in Mid-America Real Estate Corp., an Oakbook Terrace-based retail real estate firm.

The new Barneys building could also include a Citigroup Inc. bank branch at the corner of State and Oak, sources say. The branch would move from a 6,800-square-foot storefront that's part of the Esquire Theater building at 58 E. Oak St., which is owned by Mr. Hunt. He is working up plans to replace the shuttered theater with a retail and boutique hotel development. If the Barneys move is completed, its current site is expected to draw interest from developers.

But the department store's current landlord also is expected to market the space to new tenants and could charge substantially higher rent. Barneys, which has been at the location since 1992, currently pays an estimated rent of less than $28 a square foot a year, not including taxes and expenses. That figure is well below the market on Oak, where prime street-level space can rent for $250 a square foot. Ben Ashkenazy, president of New York-based Ashkenazy Acquisition Corp. and a member of the landlord group, did not return calls requesting comment.

http://img181.imageshack.us/img181/6550/og012907oof3.gif

http://www.chicagotribune.com/business/chi-0702010172feb01,0,525125.story?coll=chi-business-hed
6-tower project planned
$750 million residential complex set for area that housed Kinzie Station

By Susan Diesenhouse
Tribune staff reporter

February 1, 2007

A Chicago-based developer intends to build a $750 million residential project near downtown that it said will have enough scope and variety to be a new neighborhood.

Fifield Cos. is set Thursday to unveil finalized plans for a community called K Station that would link the West Loop and River North districts. It would include six residential towers with 2,451 luxury apartments, parking for 2,000 vehicles and 40,000 square feet of retail space, plus a Jewel/Osco supermarket.

The project would include a one-acre public park, walkways and five outdoor swimming pools, among other amenities.

The company already is building the first two apartment buildings in the project. Over the next five to seven years it would complete work on all six towers, which will range in size from 30 to 43 stories. They will rise on the eight-acre site that long ago housed Kinzie Station, a commuter rail stop, the developer said.

The location is bounded by Kinzie, Clinton, Halsted and Wayman Streets, Fifield said.

The city approved the broad concepts for the planned development last spring but it has taken several months to fill in vital details, including the size of the project.

"We're taking one of the last available tracts of undeveloped land in the West Loop to create a new neighborhood," said Steve Fifield, chairman and chief executive of the Fifield Cos., whose joint venture partner for the project is Pacific Life Insurance Co.

For the city, the addition of new rental apartments should be a boon, said Leslie Andren, a senior director for multifamily capital markets at Cushman & Wakefield of Illinois Inc.

"The city needs rental housing units because there's been more taken off the market in recent years for condominium conversion than put back in," she said.

In the past 15 years downtown has lost about 15,000 rental units, she estimated.

For a developer, this may be a good time to put up apartment buildings. Occupancy is strong at 96.9 percent, rents are rising, landlords are cutting back on concessions such as free rent, the city is creating new jobs and well-located sites are scarce, she said.

Meanwhile, there isn't a rush of new rental buildings in development because barriers to entry are substantial. It can take two years to find a site, secure city approvals and financing and get construction under way. With the rising cost of building materials and labor, condominium high-rises can cost around $400 a square foot to develop and rentals about $300, much more than the approximately $200 per square foot to purchase some existing multifamily properties, Andren said.

As a result, this year less than 1,000 new rental apartments are scheduled for completion, far fewer than prospective downtown dwellers could absorb, said Fifield President Rick Cavenaugh.

Furthermore, the 27 percent decline in the sale of new housing, including converted condominiums, through the third quarter of 2006 means that some potential buyers are likely to rent until they are sure the market is rebounding.

If the housing market does spring back in coming years, one or two of the K Station towers might be developed as condominiums. There is reason to speculate, given the surge of new downtown residents in recent years.

From 2000 though 2005 a downtown condominium boom was fueled by eager young professionals and empty nesters who bought housing and now patronize the new shops, restaurants and entertainment venues that opened nearby.

Much of the residential development has centered around the West and South Loop. Since 1991 the total number of downtown housing units doubled to approximately 100,000 while those in the South Loop tripled to 13,500, according to Appraisal Research Counselors, an appraisal and consulting firm.

Given such ebullient activity, just three months ago another Chicago developer, Centrum Properties Inc. kicked off the Roosevelt Collection, an approximately $900 million mixed-use project in the South Loop. It is slated to have about 1,000 condominiums, parking for 1,700 cars, 400,000 square feet of retail and a 2.5-acre park.

The West Loop has been another hot spot of downtown development. Since 1991 the number of housing units has more than quadrupled to approximately 14,000 from 2,900. There have also been several new office buildings. In the past eight years Fifield has produced four of the new office towers as well as two residential projects not related to K Station.

Last fall it completed construction on the first 37-story tower of the K Station neighborhood called Left Bank. Since November the 451-unit building, designed by Chicago-based DeStefano & Partners, has leased 90 units that on average rent for $2.29 per square foot with no concessions, said Cavenaugh.

Fifield developed it with a unit of Prudential Insurance Co. and expects to close on the sale of its interest to Prudential on Wednesday. It declined to state the price.

"We are a merchant builder and will probably sell some K Station buildings and keep two or three for the long term," said Cavenaugh

Also in November Fifield started construction of the second 39-story K Station tower, with 350 units, designed by Pappageorge/Haymes Architects, due for completion by mid-2008.

A month ago the developer closed on the last four acres of the site, which it purchased from a Chicago-based subsidiary of Heartland Partners LP, successor to the Milwaukee Railroad.

This fall Fifield will break ground for a third 422-unit rental building, Cavenaugh said.

Apartments will range from studios to three bedrooms. Average rent for a 750-square-foot one-bedroom will be $1,710 and for a 1,050-square-foot two-bedroom about $2,400.

Fifield said that the project design and features, like the playground, performance stage, walking paths and sculpture, will create "a community that will provide residents with a sense of arrival and belonging."

hey chi , i posted this article in its apropriate thread.

http://www.wwd.com/retail/article/112502

More Luxe Shops Come to Chicago

Published: Tuesday, February 06, 2007
By Sharon Edelson

Mayor Richard Daley's campaign to keep Chicago in the style spotlight seems to be working because the city is attracting luxury retailers. Jimmy Choo, Marina Rinaldi and Roslyn are three of the latest.

Jimmy Choo this month unveiled a 1,500-square-foot flagship on Oak Street. "Chicago is a high potential market for us, filled with sophisticated and diverse clients," said Tamara Mellon, president and founder of Jimmy Choo. We have been searching for the perfect location for a few years and believe that Oak Street is ideal to best serve our existing and future clientele."

A spokeswoman for Jimmy Choo said the Chicago store was in the works long before the company's sale to TowerBrook Capital Partners LP, an international private equity firm. The enterprise value of the deal was 185 million pounds, or $364.5 million at current exchange.

Last year, Chanel, Scoop, J. Mendel and Ann Fontaine were among the companies opening stores or signing leases to launch units in Chicago.

Choo's Chicago store, the company's 21st in the U.S., represents a new design concept for the firm's units worldwide. Inspired by a Forties boudoir, the store is arranged in salons with velvet-quilted sofas, Ultrasuede-covered chairs, satin-paneled walls, Lucite display cabinets and crystal chandeliers. Mirrored vitrines and chrome door handles underscore the brand's elegant sensibility. The company plans to open about 70 stores worldwide this year.

Chicago is also an important market for Marina Rinaldi, which recently opened a 1,300-square-foot unit in the 900 Shops on North Michigan Avenue. The company, a division of MaxMara, said, "This new store is a result of the company's commitment to this region."

Marina Rinaldi, which offers Italian fashion for women sizes 10 to 22, operates four other boutiques in the U.S., on Madison Avenue in New York, Rodeo Drive in Beverly Hills, Heritage on the Garden in Boston and South Coast Plaza in Costa Mesa, Calif.

The new store combines stainless steel, white lacquer and chestnut wood. At 900 North Michigan Avenue, Marina Rinaldi joins more than 70 stores. The boutique will introduce the spring collection, inspired by everything from Louis XIV to the shapely silhouettes of the Fifties.

Roslyn, rather than opening on Michigan Avenue or a tony side street, chose the Bucktown area for its debut. The 1,240-square-foot store, owned by Rosie Dulyapaibul, is at 2035 North Damen Avenue in a neighborhood that's populated by artists, emerging designers and interesting restaurants. Roslyn features labels such as Christopher Deane, Alice Roi, Erica Davies, Sass & Bide, Jovovich-Hawk and Vera Wang Lavender.

http://img462.imageshack.us/img462/8099/02060750df8.jpg

http://chicagobusiness.com/cgi-bin/news.pl?id=23749&bt=oak+street&arc=n&searchType=

Oak Street to get Bebe, Yurman stores

Feb. 05, 2007
By Eddie Baeb and Thomas A. Corfman

Oak Street, a haven for high-end retail, salons and European designer boutiques, is adding two big names from the U.S. fashion scene.

New York jeweler David Yurman, best-known for his silver cable bracelets and necklaces, has signed a lease for the company’s first Chicago store at 40 E. Oak St., next door to Prada, according to sources familiar with the matter.

And in a departure from Oak Street’s haute couture heritage, women’s designer Bebe Stores Inc. is to open a store in a new building under construction 109 E. Oak St. that is to showcase the company’s upscale wares.

Brisbane, Calif.-based Bebe, whose new pitchwomen are actresses Eva Longoria and Rebecca Romijn, already has five Chicago stores in suburban malls and one in Lincoln Park, at 2030 N. Halsted St. The publicly held company operates 258 stores in the U.S., Puerto Rico and Canada.

“They wanted to open a flagship store on Oak Street,” says Fred Lev, president of Chicago real estate firm Fred Lev Co., which represented the family trust that owns the 109 E. Oak St. site.

Bebe chief executive Gregory Scott said in an October conference call with analysts that the Oak Street store would be comparable to a new store on Rodeo Drive in Beverly Hills. Company representatives didn't return calls seeking comment.

Bebe signed a long-term lease for a new, three-story structure that is expected to be completed in April, Mr. Lev says. The store is to open in the fall. Construction is being financed with a nearly $2.6-million loan from Chicago-based Lakeside Bank.

Chicago attorney Robert D. Boyle, who according to property records is a member of the family that is the longtime owner of the property, could not be reached for comment.

The new building at 109 E. Oak, which will be about 7,500 square feet, replaces a building that once housed Billy Hork Galleries.

Chicago-based Jacqueline Hayes & Associates Ltd. represented Bebe.

Meanwhile, Mr. Yurman’s company has begun a national expansion after opening its first store in Manhattan in 1999. He now has 11 locations, including one recently opened in Beverly Hills, and is also planning new stores in Boston and Austin, Texas.

Chicago real estate investor Robert Berger, who owns 40 E. Oak, confirms the jeweler has signed a lease and declines further comment. A Yurman spokeswoman also declines to comment.

http://www.suntimes.com/business/248328,CST-FIN-carsons08.article

Recipe for Carson's site: Food

February 8, 2007
BY FRAN SPIELMAN AND SANDRA GUY Staff Reporters

A "hybrid" grocery store and food emporium to serve the Loop's burgeoning population of residents and college students will anchor retail development of the landmark State Street building that includes soon-to-be-closed Carson Pirie Scott & Co., sources said Wednesday.

The anchor tenant could not be identified, but sources likened the store to a combination Whole Foods and Treasure Island. However, spokesmen for several grocers contacted this week have denied any involvement, including Fox & Obel, Fresh Market, Potash Bros., Sunflower Markets, Treasure Island, Wal-Mart and Whole Foods.

City Planning and Development Commissioner Lori Healey refused to discuss the plans, except to say that Joseph Freed and Associates, owner of 1 S. State, has lined up marquee tenants and, "I anticipate they'll have something fairly exciting to announce soon."

Healey didn't hesitate when asked to describe the kind of development the city would like to see in the 250,000 square feet of space in the Carson's building earmarked for retail.

"Diversity. Bring back some different uses," she said. "We'd like to see unique retail. We'd like to see grocery. We'd like to see the things that we really need downtown. With our student population and our growing residential population, it's very important to encourage grocery stores to look down in our new neighborhood of the East Loop."

Bon-Ton Stores Inc., which owns Carson's, last summer announced that it was closing the State Street store that has been a Loop fixture for more than a century. The store will remain open until March, and Bon-Ton is searching for another Chicago site where it hopes to build a more cost-efficient store.

The entire complex includes 1 million square feet, but Carson's uses only about 600,000 square feet of it for retail. Roughly 250,000 square feet will be converted to retail. The remaining 350,000 will be reserved for office and school uses.

Paul Fitzpatrick, managing director of Joseph Freed and Associates, said earlier this week that he expects to have an announcement about leases by the end of February.

In the past, Fitzpatrick has talked about a mix that includes retailers, restaurants, entertainment uses and grocery stores.

The food emporium wasn't the only promising news for State Street.

At Wednesday's City Council meeting, Mayor Daley introduced an ordinance that would authorize the city to sell the landmark Page Brothers Building, 177 N. State, to Marc Realty for $1.62 million.

After paying a price $125,000 above the building's appraised value, Marc Realty plans a $1.5 million renovation of the seven-story building, including facade restoration, a new lobby entrance for upper floor tenants, roof repairs and a partial green roof.

The developer plans to fill the first two floors with a restaurant and retail stores.

Built shortly after the Great Chicago Fire of 1871, the Page Brothers Building was designed by John M. Van Osdel, described as one of the city's first professional architects.

"It's a beautiful building," Healey said. "Revitalizing that building with new uses -- it's going to be great for the north half of State Street."

http://www.globest.com/news/839_839/chicago/152773-1.html

Construction Set for 200,000-SF Retail Site
By Gina Kenny

Construction is expected to begin soon on the more than $40-million MetraMarket, the 200,000-sf, ground-level retail redevelopment being created beneath overhead commuter rail tracks. The first phase of the development, approximately 66,000 sf on the south block, is 50% preleased, says Jim Whittington, managing director of finance and investments for US Equities Realty.

Paris-based Sebastien Bensidoun has signed a 15,000-sf lease to anchor the redevelopment while Providence, RI-based CVS is adding a 14,000-sf location in the new two-block retail area north of the Ogilvie Transportation Center. Caffe RoM, a European coffee bar by day and wine bar in the afternoon and evening, will occupy 2,900 sf on Canal Street, between Randolph and Washington streets.

The MetraMarket is expected to have restaurants, a newsstand or bookstore and other food businesses such as an ice cream emporium. Developer US Equities Realty is currently in “serious negotiations” with “a number of other” potential tenants. “There have been leases drafted back and forth that we anticipate signing in the next month or so,” Whittington tells GlobeSt.com. “We would be making announcements of those at that time, but one will be a white tablecloth restaurant.”

Ogilvie Transportation Center is visited by 95,000 commuters daily, topped only by nearby Union Station. In addition, the Chicago Transit Authority’s Green Line station at Clinton Street sees 2,260 commuters a day.

The more than $40-million project is reactivating a 95-year-old building bounded by Canal, Clinton, Lake and Washington streets. Although terms of the Bensidoun and CVS deals were not disclosed, asking lease rates for MetraMarket space ranges from $30 per sf to $60 per sf net plus expenses, Whittington says. Construction is expected to take six to nine months, with the first occupancies expected in the late summer or early fall. About 100,000 sf is already being used as a parking garage.

The second phase of the project will be the north block, bounded by Randolph, Lake Canal and Clinton streets. The spaces in the north block are expected to be larger and may contain some “destination oriented retailers,” Whittington says. The second phase is expected to begin in 2008.

I'm still holding out for a Dean + Deluca. They have amazing coffee...

I'm still holding out for a Dean + Deluca. They have amazing coffee...

Macy's and Dean + Deluca, what could possibly be better? Perhaps The Strand and Grey's Papaya could open up across the street?? Anyone interested?

Well, obviously a similar locally-owned business would be better. However, I don't know of one on the same scale - which is kinda funny in America's culinary capital.

http://www.suntimes.com/business/254144,CST-FIN-apt13.article

OK for apartments sought at Lake, Wells garage site

February 13, 2007
BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters
One of downtown's longtime parking garages would be demolished and replaced with a 43-story apartment tower under a zoning plan filed at City Hall.
The proposal calls for a building with 335 units at 200 W. Lake, the northwest corner of Lake and Wells. On the site is a three-level parking garage and a small surface lot.

Zoning documents say the building also would get parking for about 550 cars, an unusually large allotment. City officials have urged developers to be generous in providing indoor spaces, especially when their buildings replace garages and lots that drivers have relied on for years.

Submitting the proposal was Hinsdale-based Midwest Property Group Ltd. Its president, Jaime Javors, said studies show demand for rental homes downtown is growing.

Javors also said the building's parking garage will connect to Post Place, a small street that provides access to Lower Wacker Drive and Lake Street. He said the city likes that the building's traffic can come and go on Lower Wacker without clogging the rest of the Loop.

The zoning application starts a review process that could take several months and culminated in a vote by the City Council.

Ron DeVries, vice president at Appraisal Research Counselors Ltd., said the downtown market has lost 6,310 apartments to condominium conversions since 2000, or about 25 percent of its base. DeVries, a consultant on the 200 W. Lake deal, said he expects it will be priced for young renters looking for proximity to downtown jobs.

The project is close to the 188 W. Randolph building, a vintage office tower being converted to apartments, and a site at 215 W. Washington that's scheduled to get a 49-story apartment building, with parking taking up the first 12 levels.

Across the street from 200 W. Lake is Century Tower, downtown's most prominent condo conversion of the last two years. American Invsco Corp. converted the units after first renovating the 1930 building and changing it from offices to apartments.

Midwest has hired the Chicago architectural firm Solomon Cordwell Buenz to design 200 W. Lake.

^Great to hear. And so another parking structure meets its demise. I like that much of the parking-related traffic will be channeled underground, though I worry about what the base will look like given the amount of parking it's expected to accommodate. I hope it contains retail as that area could really use a little more vibrancy.

Condo project across from Millennium Park to be completed
A long-stalled condominium project across from Millennium Park is back on its feet.

Chicago-based brokerage @properties is getting ready to start selling condos in a vintage office building at 6 N. Michigan Ave., a project launched seven years ago by a little-known developer.

The developer, Chicago-based Global Real Estate Investors LLC, defaulted on a $44.8-million construction loan, so one of the project’s lenders, Oak Park-based FBOP Corp., is finishing the job.

Though the condo market has slowed, the bank’s timing could be good. The neighborhood has become increasingly popular with condo buyers since the opening of Millennium Park in 2004.

Related Article Topics | Related Industry News
Because of the “Millennium factor,” the project “is in a stronger market position today than it was two, three years ago,” says Garry Benson, president of Garrison Partners Inc., a Chicago-based condo marketing firm.

Once the headquarters of Montgomery Ward & Co., the 21-story building sits almost directly across from Cloud Gate, the polished chrome sculpture also known as “The Bean.”

Units are “basically finished” on some of the building’s lower floors, and @properties plans to open a sales center and models before Memorial Day, says @properties Co-founder Michael Golden. Some buyers will be able to move in by September or October, he says. Unit prices will range from the $300,000 range up to $4 million for a penthouse.

An FBOP executive did not return phone calls.

Buyers had signed contracts for 73 of the 129 condos in the building by early 2005, according to a report by Appraisal Research Counselors, a Chicago-based consulting firm that tracks the condo market. Around 38 contracts are still valid, Mr. Golden says.

The bank “is going to honor those deals,” he says.

Global Real Estate Investors launched the conversion in 2000 but ran into financial problems a few years later. After the developer defaulted on its construction loan, the original lender, CIB Bank, filed a lawsuit in 2004 alleging that the firm illegally diverted money from the project into other business ventures.

A judge later dismissed the suit, but CIB Bank is still trying to collect $40 million from one of the firm’s principals, Romel Esmail, who guaranteed the loan. The firm’s other principal, Bassam Haj Yousif, filed for Chapter 7 bankruptcy protection in 2005. His case was closed in December.

CIB, meanwhile, cut a deal to relinquish control of the project to Cosmopolitan Bank & Trust, a unit of FBOP, which took title to the property in January.

Would someone please post a pic of this building. I'm having a hard time figuring out which one it is.

Until someone posts a non-copyrighted pic, here's the link to a couple pics: http://www.emporis.com/en/wm/bu/?id=6northmichigan-chicago-il-usa

..

Burnham Pointe
http://img64.imageshack.us/img64/6202/burnhampointenp5.jpg


Printers Corner

http://img64.imageshack.us/img64/1530/printerscorneruh9.jpg


Vetro

http://img79.imageshack.us/img79/9185/vetronn1.jpg


1720 S Michigan
http://img235.imageshack.us/img235/8671/1720smichiganglassfj8.jpg

http://img59.imageshack.us/img59/5949/1720smichiganyv4.jpg


900 S Clark

http://img59.imageshack.us/img59/1263/900sclarkln0.jpg


Michigan Avenue Tower II

http://img64.imageshack.us/img64/5534/michiganavenuetoweriidk6.jpg

Am I having a nervous breakdown?


Yes.

Anyway, I wish they would reconstruct the pyramid at the top - if done correctly it would be a signature feature of the streetwall and worthy of TIF money or other funds as a way to honor Ward for keeping Grant Park as open space.

Does anyone have a picture of what that once looked like?

..

Even though the building still exists, it's sad how stripped it looks today.

http://img201.imageshack.us/img201/2844/n001233yk5.jpg
http://img201.imageshack.us/img201/2593/n001232um3.jpg
http://img201.imageshack.us/img201/7434/n004131au6.jpg

^Nice work, dan. We don't get enough updates of these buildings.

I have a question about the 900 S Clark picture. Is it the building with the black tarps covering it or is it the rebar sticking out of the ground in the foreground of the picture?

I couldn't figure out what this one was in the S. Loop and I forgot what street it was on, maybe S. Michigan or S Wabash?

http://img83.imageshack.us/img83/79/whatisthissouthloopzb0.jpg

I couldn't figure out what this one was in the S. Loop and I forgot what street it was on, maybe S. Michigan or S Wabash?

http://img83.imageshack.us/img83/79/whatisthissouthloopzb0.jpg

I'm guessing the Marquee Michigan?

^oh yeah, your right, I guess I just tried to repress this one from memory...it worked!

Taken today:

http://img260.imageshack.us/img260/4020/vetro3ix9.jpg

http://img264.imageshack.us/img264/7938/vetro1mc6.jpg

http://img264.imageshack.us/img264/6509/vetro2wh4.jpg

PC
http://img470.imageshack.us/img470/659/printerscornerln6.jpg

MM
http://img20.imageshack.us/img20/5608/marqueemichigankk3.jpg

Post at SSP:

March 23, 2007
By Thomas A. Corfman

Subscribe to an RSS feed on this topic


Developer gets short-term Allstate loan for 29 & 39 S. LaSalle
Allstate Corp. has issued a $26-million, short-term loan on 29 and 39 S. LaSalle St., where developer Hamilton Partners has proposed building a hotel/office skyscraper.

The proposed 51-story tower would accommodate landmark protection given to 39 S. LaSalle St., which was designed by William LeBaron Jenney, a pioneer of skyscraper design, and built in stages between 1893 and 1903.

The three-year, floating-rate loan doesn’t have “significant prepayment restrictions,” which gives the developer flexibility if the project moves forward, says M. W. “Sam'' Davis, senior managing director of real estate for the Northbrook-based insurer.

Such short-term loans, geared to “transition properties,” are a growing part of Allstate’s commercial real estate lending business, accounting for about 25% of the $2.2 billion in loans Allstate issued last year.

“We are able to put our real estate analytical skills to work and be paid a little bit extra (in interest) for those loans by taking some risk on these deals that have leasing or redevelopment plans.”

While Hamilton waits for the site to be caught up in the development boom, most of the existing tenants in the two buildings have lease that expire over the next couple years. Combined, 29 & 39 S. LaSalle had a 24% vacancy rate in December.

In the most noteworthy lease, Starbucks Corp. last year signed a 10-year lease for a 2,380-square foot storefront at a gross rent of $100 per square foot. Whether Hamilton has cancellation option on the lease could not be determined. Robert Klauseger of Hamilton could not be reached for comment.

The loan is less than 75% of the value of the site, according to the mortgage, which would mean the financing values the property at about $35 million, a 45% increase in value since 2004.

In July of that year, a venture led by Hamilton paid $24.1 for the properties in 2004, buying them from a partnership that included the Pritzker family, property records show.

A portion of the 29-39 S. LaSalle is owned by the University of Chicago, which leases the land to Hamilton under an agreement that expires in 2103.

Under the landmark ordinance, Hamilton would build the on the site of 29 S. LaSalle, a vintage tower that would be demolished. The new tower would cut into 39 S. LaSalle, but preserve the exterior and portions of the lobby.

What's going on with the La Quinta being built on Franklin? I haven't been to that area of the Loop in several months.

Are they still demolishing the old building?

Any news about the surface parking lot across from NBC Tower? For a while a couple of years ago I kept hearing that it would be developed, but then everything went silent. Does it have the same environmental remediation problems as other properties in that area?

Any news about the surface parking lot across from NBC Tower? For a while a couple of years ago I kept hearing that it would be developed, but then everything went silent. Does it have the same environmental remediation problems as other properties in that area?

Yeah, the soil is radioactive there due to a long slow leak of thorium from the Lindsay Light Company.

There have been no recent proposals for the lots north or south of NBC, but the lot on the east side of Fairbanks has been bought by Michael Reschke and Chris Carley, who plan to erect a roughly 60-70 story building there. I'm not even sure they've selected their architect yet, so we certainly don't have any detailed information or renderings.

To be honest, I hope those lots are developed AFTER Chicago Spire is under construction or finished. The way things are right now, that seems likely anyway. They provide an opportunity to build other nearby supertalls to balance out CS in the skyline.

^I remember reading that Helmut Jahn was slated to design the building on the parcel purchased by Carley. I'm not 100 percent sure, though.

Post at SSP:

Developer gets short-term Allstate loan for 29 & 39 S. LaSalle

Ugh, this project bothers me so much. There's nothing redeeming about it at all. It's not that tall anymore, REALLY ugly for today's office buildings, and partially destroys some fine and historic buildings.

I hope this project fails. IIRC, the floorplates were pretty small, so that shouldn't be too attractive for tenants. Also, Buck's new tower will hopefully fill any new demand, and if that doesn't, Hines is planning a nice new project along the river.

From SSP:

I was walking through River Plaza when I saw a rendering and info. on a proposed 17 storey approximately 220 foot building at 403 N. Wabash immediately adjacent to Trump Tower on the north. It would be built over the existing garage entrance and garden area for River Plaza where the pedestrian stairs go through and it would share River Plaza's driveway. Anyway here are some pics of the notice that I took today.

http://img155.imageshack.us/img155/9131/dsc00486qa3.jpg

http://img81.imageshack.us/img81/1783/dsc00487bu9.jpg

http://img100.imageshack.us/img100/8347/dsc00488ly5.jpg

http://img295.imageshack.us/img295/2152/dsc00489ek6.jpg

http://img139.imageshack.us/img139/9696/dsc00490rd2.jpg

http://img157.imageshack.us/img157/4703/dsc00491kr2.jpg

^hmmm. Decent. Is this the first we have ever heard of this?, I thought I remember somebody mentioning this a long time ago, maybe not?

http://chicagobusiness.com/cgi-bin/mag/article.pl?article_id=27580&bt=condo&arc=n&searchType=all

Hotel firm checks in on Michigan Avenue
Planning 50-story tower across from Hard Rock

By Alby Gallun and Thomas A. Corfman

A Florida real estate developer is drawing up plans for a 50-plus-story luxury condominium and hotel project on Michigan Avenue just south of the Chicago River, adding competition to a crowded high-end hotel market.

Peebles Corp., one of the country's biggest black-owned development firms, has signed a contract to pay about $32 million for 300 N. Michigan Ave., according to people familiar with the deal. It's currently the site of two buildings that house a Walgreens drugstore, Subway restaurant and Radio Shack store.

The company's chairman and CEO, R. Donahue Peebles, plans to raze the structures and build a 400,000-square-foot tower that would include a 200-room five-star hotel, about 35 condo-hotel suites, as many as 45 condos, retail space and restaurants. The condos would be among the city's priciest, ranging from $800 to $1,200 a square foot. The most expensive unit would top out at $10 million.

Designed by Arquitectonica, a Miami architecture firm, the building would cost about $215 million, Mr. Peebles says. "We want it to be a signature project," he says. "It's a very prominent corner and Michigan Avenue is one of the great streets of the world."

Mr. Peebles says he's courting international hotel brands for the project, but declines to name them. One that has expressed interest is Regent Hotels & Resorts Inc., a unit of Minneapolis-based Carlson Hotels Worldwide Inc. that has six hotels around the world and eight more in the works, says a person familiar with the project. A Regent spokesman declines to comment.

Peebles has agreed to buy the property from a group that includes local developers Charlie and Harry Huzenis and Michael Lerner.

Mr. Peebles, 47, has projects in Miami Beach, Detroit, Las Vegas and San Francisco. He started scouting sites in downtown Chicago about a year-and-a-half ago.

Mr. Peebles isn't the only hotel developer in the neighborhood aiming at the high end of the market. Five other luxury projects are in the works within five blocks of the Peebles site, including Donald Trump's 286-room tower along the Chicago River. And investor Sam Roti says he plans to convert the long-vacant Chicago Motor Club building just west of the Peebles site into a boutique hotel.

Mr. Peebles "is not the sort of guy I would bet against," says Laurence Geller, CEO of Strategic Hotels & Resorts Inc., a Chicago real estate investment trust that owns the Fairmont Chicago and the InterContinental Chicago. But "you've got an awful lot of luxury hotels in a small space in a city that's not renowned for high room rates."

Mr. Peebles is unconcerned, noting that the projects in the works are relatively small considering the size of the downtown hotel market. "That market can handle the new hotel inventory that's coming on line," he says.

http://img399.imageshack.us/img399/4117/og041607mpz3.gif

This isn't the Arquitectonica project in LSE is it? If not, that's two Arquictectonica projects in like two blocks. Maybe they could contextualize off of each other.

Preservation Chicago has been working for the past five years to gain reconstruction of the pyramidal tower. The effort started with a Featured Letter with a beautiful close-up photograph of the tower in the Sun-Times. There were subsequent articles in the Tribune and Sun-Times.

As proposed by Preservation Chicago, such reconstruction would not need to include the delicate statue of "Progress" that was atop the original peak. Also, there could be some compromises made about the classical-styled tempietto that is in between the pyramidal roof and the statue.

There was no demand that the original materials be used. It was during this time five years ago that the remarkable detail made possible by carbon fiber-reinforced concrete were becoming better known. It was also at the time that preparations were underway to restore the crown to the top of Mather Tower. That restoration went off without a hitch.

However, Preservation Chicago was absolutely stonewalled for several years by Bassam Haj Yousef and his partner at Global Real Estate Investment. They were so far in over their heads with that project already (remember Tom Hanks in "The Money Pit?") that they wouldn't think of spending an extra dime on the tower.

Preservation Chicago was also disappointed that DPD would share not one dime of Central Area TIF funds to help tower reconstruction. These funds were pouring into Millenium Park, so it seemed only logical that some of these funds should be used to enhance the historic streetwall directly across from Millenium Park. Preservation Chicago felt, then and now, that the City dropped the ball on this one.

Preservation Chicago is not giving up, however. Unlike prevention of a demolition, there will always be a platform for this tower to be reconstructed. Never say never!

..

This isn't the Arquitectonica project in LSE is it? If not, that's two Arquictectonica projects in like two blocks. Maybe they could contextualize off of each other.

No. The one for LSE will be much taller.

Were they not the architect for the Art Museum Expansion as well?

This is very exciting news! Arquitectonica is a VERY talented firm and I have absolute faith in whatever they'll come up with for this site. I'm keeping my fingers crossed for this one.

Were they not the architect for the Art Museum Expansion as well?

Are you referring to the Art Institute expansion currently under construction? The Architect for that is Renzo Piano: http://rpbw.r.ui-pro.com/

From the article above:

And investor Sam Roti says he plans to convert the long-vacant Chicago Motor Club building just west of the Peebles site into a boutique hotel.

This one sentence is probably the thing I'm most excited about, if true. The last time we heard something about this site he wanted to destroy the building along with the church.

http://img486.imageshack.us/img486/9476/27874345906ed95021dfu8.jpg

Wacker Tower is such a beautiful building, it would be great to bring it back to life. Maybe the hotel can work on an automobile/map theme relating to the huge lobby mural.

The next Friends of Downtown Brown Bag presentation
Thursday, May 3rd at 12.15
Chicago Cultural Center
Millennium Room, 5th floor east

Palmer House Renovation

This historic Chicago property has already begun a major renovation. Ken Price, Director of Public Relations of Hilton Hotels, will offer a history of the Palmer House; Mary Ann Cronin, Director of Development of Thor Equities, will discuss the challenges of converting a landmark building into a 21st century economically viable property, and Jim Pritchett of Loebl Schlossman & Hackl will review the upcoming design plans for the project.

^^^^^^^
I pray part of the renovation is to get rid of those eyesore fire escapes. Is there any law that they must stay? They are hideously ugly.

The street level of the Palmer House really needs a great deal of work if they want to return to world class status. The fire escapes lend some character to the building in my opinion.

I doubt they'll come down. I thought the rennovation as largely focused on the retail spaces.

*Edit* Turns out I was wrong! Not sure if this has been posted here before:

Article taken from Hotel Online:
http://www.hotel-online.com/News/PR2006_2nd/May06_PalmerHouse.html

A spokeswoman for the city's Department of Planning and Development, however, maintained that it is more important to provide a sound financial footing for the landmark hotel, which has been showing its age in recent years.

"It was done with the effort to preserve a grand structure," said the spokeswoman, Constance Buscemi. The new owner, she added, is committed to "preserve or rehabilitate parts of the building that are most historically significant."

Among those elements, the owner said, are the removal of the fire escapes on the State Street facade as well as the grill-like screens that try to hide them. The owners plan to redesign the Monroe Street entrance, using the hand-forged, bronze doors with a peacock motif that marked the C.D. Peacock jewelry store at the hotel.

..

My feeling, besides the fact that they are eyesores, is that the fire escapes were not originally part of the facade. Now that technology has allowed interior sprinkler systems, I'm hoping the original handsome exterior of the hotel will again sparkle.

But, what progress has taken place so far?

..

I suspect those extra fire escapes were added after the Hotel LaSalle fire killed 61 people in 1946.

Loopy, when have "preservationists" ever asked for external fire escapes to be saved?

It's great to hear the fire escapes and coverings will be removed.

Random photo from the net:
http://www.freemars.org/mnfan/MarsSociety/2004/Mars-Soc-2004-181.jpg

..

Anyone make it to the Friends of Downtown presentation? Anyone have any renderings on the changes?

Anyone make it to the Friends of Downtown presentation? Anyone have any renderings on the changes?

The presenters asked that no photos be taken. Nothing terribly striking or unreported, other than a new storefront system for the ground floor, and of course, the removal of the State Street fire escapes. Those fire escapes are shown, by the way, on the original 1925 H&R elevation (which was displayed).

I was able to confirm that the midblock arcade (from State to Wabash) will remain open. In fact, it appears that Landmarks Division reopened negotiations after the first, depressing, approvals. Now the arcade is part of the landmark designation, so will remain forever. The basement (including the old Trader Vic's) will become a 250-car garage, with a ramp entered off Wabash. I suppose that means a new curb cut there.>(

When will the renovation of the blackstone be finished?

When will the renovation of the blackstone be finished?

I forget the exact month, but I think I remember hearing that it would be finished sometime this fall.

The presenters asked that no photos be taken. Nothing terribly striking or unreported, other than a new storefront system for the ground floor, and of course, the removal of the State Street fire escapes. Those fire escapes are shown, by the way, on the original 1925 H&R elevation (which was displayed).

I was able to confirm that the midblock arcade (from State to Wabash) will remain open. In fact, it appears that Landmarks Division reopened negotiations after the first, depressing, approvals. Now the arcade is part of the landmark designation, so will remain forever. The basement (including the old Trader Vic's) will become a 250-car garage, with a ramp entered off Wabash. I suppose that means a new curb cut there.>(

Thanks, Downtown. The added parking will be a boon, I'm sure, but won't do much for Wabash traveling pedestrians :ohno:

The State Street ground level . . . are they revamping the exterior or just doing touch ups?

The State Street ground level . . . are they revamping the exterior or just doing touch ups?

It's a pretty extensive rehabilitation, and I would say an entirely new storefront system that they're designing to be in the spirit of H&R's original, but with a little extra oomph in places and simplified, almost spare, in other details. They're moving the old Peacock Co. Jewelers entrance screens around to use on the Monroe entrance. They're doing 100,000 sf of retail, which probably means they're taking in some second-floor space on the State Street side.

However, the building was originally designed to have 250,000 sf of retail! The State Street side of the building was designed to be a "tall shops" retail building (like the North American or Stevens or several others on State and Wabash), with stores all the way up to that big space on 4 that's now an expo hall. That's one reason the levels don't align on 3-4-5. But I don't think they ever leased up that way, and the upper level space was quickly converted to convention needs and hotel offices.

199 West Monroe
~36 story office building
(renderings from architect's website)

http://img246.imageshack.us/img246/8169/199wmonroe1zp2.jpg
http://img246.imageshack.us/img246/4126/199wmonroe2ca6.jpg
http://img511.imageshack.us/img511/7702/199wmonroe3ow3.jpg
http://img511.imageshack.us/img511/1561/199wmonroe4su6.jpg

I dig this building. I'll have to walk by their later today though, to see if this will be out of place. I think it might stick out, given the location, which might not be a good thing.

Gorgeous. I love the gentel convex curve on the front. So sexy.

I don't believe that Preservation Chicago is opposing the removal of the fire escapes at Palmer House. So, I'm pretty sure they will be removed.

Mostly their complaints were about the storefront treatments and canopies, both being readdressed by the developer per their concerns.

Currently, there is a sidewalk protective canopy in place set away from the storefronts. It looks like they have begun work or will soon.

Preservation Chicago fought hard against Thor Equities over the original plan. Thor Equities had proposed glass and steel sterilization of the State Street facade. They wanted to remove a lot of limestone from the second floor and replace it with glass. The result would have been a glass facade on State Street up to the third floor with a traditional facade above it. It was bad. Thankfully, that plan for the State Street side was scrapped.

The Thor Equities plan has always called for removal of the fire escapes. In general, preservationists whom I know love fire escapes. They really give you that historic feel that says "city." Personally, I would have been happy if the fire escapes stayed.

However, with the Palmer House, they were not part of the original design. Holabird and Roche wanted a clean facade over State Street and so does Thor Equities. Preservation Chicago opted to agree with the fire escape removal.

The only true loss at the Palmer House is that the length, i.e., the east-west dimension, of the fantastic Monroe Street canopy will be reduced substantially. That will allow Thor Equities to have more retail windows on Monroe that are not under the canopy's shadow. Preservation Chicago fought the Monroe Street canopy reduction but lost.

I've always thought those canopies were a bit oversize anyway, creating a disharmony with the rest of the building. Just because the building came from Holabird and Roche does not make it perfect in every way. I'm also glad they are removing the fire escapes.

Zell puts West Loop building on the block

May 30, 2007
By Thomas A. Corfman

Billionaire investor Samuel Zell is putting up for sale an antiquated West Loop office building his father bought nearly 30 years ago.

In response to unsolicited bids for 300 W. Adams St., Mr. Zell has hired the real estate firm Cushman & Wakefield Inc. to market the 12-story structure, sources say. The building, at the corner of Adams and Franklin streets, has been controlled by Mr. Zell’s family since 1970, when it was purchased by his father, Bernard Zell, an astute real estate investor who died in 1986.

...

Bidders have considered several options for the structure, including redeveloping it and even tearing it down to make way for a new building, sources say.

The Gothic structure is possibly the only office building designed by Jens Jensen, who is best known as a landscape architect.

Full article (http://chicagobusiness.com/cgi-bin/news.pl?id=25163)

Is this one worthy of saving though? It may be Jens Jensen's only office building, but then again there might also be a reason Jens Jensen was known as only a landscape architect.

I love it, but it is kind of a dwarf among giants. Also, what's with calling this "West Loop"? In my mind, West Loop is west of the river.