Downtown Development News [Archive]

BVictor1

January 21st, 2005, 01:38 AM

City easing building fee rise
New ordinance allowed up to 1% of construction cost

By Thomas A. Corfman and Gary Washburn
Tribune staff reporters
Published January 20, 2005

The Daley administration is backpedaling from the eye-popping increases in building permit fees included in the City of Chicago's 2005 budget.

A new fee ordinance, set to take effect Feb. 1 and applying only to new construction, calls for permit fees of up to 1 percent of costs, replacing a formula based on building size.

As a result, the new ordinance could increase the cost of a building permit for a 2,000-square-foot home to at least $1,800, compared with $264 under the old schedule. Donald Trump's permits for his 90-story skyscraper could cost at least $2.6 million, compared with about $350,000 under the old system.

But the city is preparing a specific schedule of fees, based on building type, that could soften those increases. However, the Department of Construction and Permits still does not know who will be charged how much.

Department spokeswoman Sabrina Miller noted Wednesday that the ordinance calls for a maximum fee of 1 percent of construction costs but a minimum charge of $85.

The higher permit fees were part of the $5.1 billion budget plan approved by the City Council last month after spirited bargaining between the administration and aldermen over a wide assortment of tax and fee increases needed to close a $220 million deficit.

The permit controversy is an embarrassment for the administration, which was criticized by some community advocates and a few aldermen for not providing adequate information about the budget.

"There's no process," said Peter Skosey, vice president with the Metropolitan Planning Council. "It's Mayor Daley's budget people getting together in a room, trying to figure out where there's an upward trend and how the city can make money on it."

The permit fee hikes come on top of a new residential-development tax, called an impact fee, that ranges from $250 to $625 per unit, depending on its size.

"I think they'll live to regret some of these decisions, if indeed it gets to the point where it starts to reverse that upward trend," Skosey said.

Before the budget was passed, the permit fee increases gained little attention, even from developers and construction contractors.

"We knew it was in the budget, and it was one of the many things--we didn't get specific on that one--when I testified about what we felt was death by a thousand taxes," said Gerald Roper, president of the Chicagoland Chamber of Commerce.

Roper said developer Steven Fifield brought the new fees to the attention of business leaders, using Trump's 2.5 million-square-foot project as an example.

Fifield, president of Chicago-based Fifield Cos., could not be reached for comment.

Before the Chamber of Commerce and the Chicago Development Council, a local real estate group, could lobby City Hall for changes, Planning Commissioner Denise Casalino had stepped into the controversy, Roper said.

Casalino "said it was a mistake in their calculations, and they were fixing that," Roper said.

Casalino, a former first deputy director in the permit department, said the change was intended to increase the annual total of permit fees by $1 million, Roper added.

Through mid-November, 2004 building permit fees brought in more than $30 million.

Casalino "wants to make sure these fees don't inhibit new construction," said her spokesman.

Miller, the permit department spokeswoman, denied the fee increase was a mistake, but added, "I don't think anybody could even come up with a clear, definitive number of how much additional money the change would generate."

The increases are part of a change in the way permit fees are calculated that was intended to bring the city in line with modern building codes. Under the old ordinance, fees were calculated based on a rate of $12 per 1,000 cubic feet of building space.

Under the new ordinance, the maximum 1 percent would be determined by either a project's actual budget or a table of typical costs for various types of projects set by the International Code Council, a construction industry group that proposes model building codes.

San Francisco, Detroit, Boston and Houston charge more than 1 percent, the permit department says. Chicago charges 1 percent for renovation projects.

In Chicago, construction costs typically are higher than the council's cost table, especially for high-rise buildings. For example, the table estimates the cost of residential development at $106.23 a square foot. In Chicago, a building such as the proposed Trump International Hotel & Tower Chicago easily could cost twice that much, industry experts say.

The Tribune estimated permit fees under the new ordinance using the council's cost table.

While developers of high-priced condominiums and townhouses are scrambling to pass the fee increase on to home buyers, the new fees and taxes could halt other developments, said Chicago zoning attorney H. James Fox, a partner in law firm Quarles & Brady LLP.

"New, affordable and moderately priced housing? You're not going to have any more of that," he said.

geoff_diamond

January 24th, 2005, 11:01 PM

Not trying to hijack this thread for something other than its intended purpose... but, I couldn't really find a better spot for these. As you all know, already, Hyatt Center and 111 S. Wacker are both wrapping up construction. Rather than make two new threads for buildings that only have a few weeks left until they're finished, I thought I'd just post some updated shots in here. Enjoy.

111 S. Wacker as seen from Franklin and Monroe.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/111swacker_01240501.jpg

Looking straight up the glassy facade of 111 S. Wacker.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/111swacker_01240502.jpg

Perhaps the nicest garage entrance I've ever been witness to (111 again).
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/111swacker_01240503.jpg

Putting the finishing touches on the 111 lobby.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/111swacker_01240504.jpg

The northwest corner of 111.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/111swacker_01240505.jpg

Another shot of the 111 lobby.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/111swacker_01240506.jpg

That's it for 111 S. Wacker updates. Hyatt Center shots can be found in the following post.

geoff_diamond

January 24th, 2005, 11:04 PM

Hyatt Center... as promised.

New signage on Franklin.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/hyattcenter_01240501.jpg

What can I say about this shot? I love this building.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/hyattcenter_01240502.jpg

Quickie shot of the south facade of the building.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/hyattcenter_01240503.jpg

Lastly, a shot of the base. It's hard to make much out because it's still quite dark inside.
http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/hyattcenter_01240504.jpg

BVictor1

January 25th, 2005, 05:41 AM

Great shots dude..

I think that the lobby of 111 South Wacker is going to be stunning. That curved, sloped ceiling is amazing.

STR

January 25th, 2005, 06:23 AM

I can see that edge-on shot of Hyatt ending up on many-a-postcards.

geoff_diamond

January 25th, 2005, 06:49 AM

Yeah... it's just such a photogenic building!

BVictor1

January 30th, 2005, 04:32 PM

THE MARKET
Condo market thrived in a record '04

Wayne Faulkner, Real Estate editor
Published January 30, 2005

It's official: 2004 was a record year for sales of existing homes in Illinois.

The statewide total of 126,946 sales was up 4.3 percent from the 2003, according to the Illinois Association of Realtors. Both single-family homes and condominiums set records last year, the Realtors reported last week.

In the Chicago area, sales of single-family homes rose 3.8 percent in 2004, to 80,921.

But condos sold at "double the rate of existing single-family homes," according to a statement by John Veneris, the Illinois Realtors' president. Statewide, condo sales rose 9 percent in 2004, to 54,690, and the median price was up 6.7 percent, to $189,900.

In metro Chicago, condo sales rose 9.4 percent in 2004, to 51,662 from 47,212, and the median price rose 6.8 percent, to $193,900 from $181,600 in 2003, according to the Illinois Realtors' Mary Schaefer.

The sales records were set even as the time it took to sell homes rose -- substantially in some towns, as we reported last week.

One reader, a builder, wondered whether the market times went up because real estate agents no longer can take a home off the market and then put it right back on and make it appear on the multiple listing service that it's new to the market.

But that apparently didn't figure in, because the Multiple Listing Service of Northern Illinois changed the rules about five years ago to more accurately reflect market times, according to Mary Rzepecki, director of operations at the region's largest MLS.

Until last February, a home would have to be off the market for 180 days before it could be relisted and start its market time over again, said Sarah Burke, rules and regulations supervisor at the MLS. Now a house must be off the market for 90 days before it can be relisted with its sales odometer at zero days, she said.

Say a house is listed for 200 days and hasn't sold. It is taken off the market -- perhaps the listing expired or the seller switched agencies -- and 60 days later goes back on the market and into the multiple listing service. The listing will then show 201 days on the market, not just one, Rzepecki and Burke explained.

What's new is old

When we get ready to buy a home, we often debate whether we want old or new. We may like the feel of an older house, with its mature landscaping and fine old woodwork. But, we like the up-to-date floor plans of new construction, plus new houses often have all the modern conveniences we've come to expect: advanced wiring, efficient heating and cooling systems, a fancy, big kitchen with nice appliances.

Is it possible to have it both ways: a new house that seems like it's been around for decades?

If you have several million dollars to spend, you can buy such a house in Lake Forest.

Listed at $7.25 million by Houda Chedid of Baird & Warner, the English Tudor-style mansion looks from its photographs to have stood on its 1.5-acre lot off Green Bay Road for decades.

That's because builder and designer Demari Homes LLC wants it that way. That's their specialty, said Richard Vanselow, partner in the North Shore firm.

"I would say that most people that I run into want homes that look like something that's not trendy, therefore they go back in time," Vaselow said.

The stone, brick and stucco house, which has seven bedrooms and nine full baths, according to listing information, has a slate roof. Its exterior doors are hand-built hickory with hand-carved spandrels. The interior doors are maple. Interior walls are stucco or plaster throughout.

And though all the cabinetry was made on-site, Vanselow said, the home's flooring is antique white oak and reclaimed stone from France and England.

There are seven fireplaces, including one in the living room with an antique marble surround reclaimed from a house in England. The foyer's stone floor is English graybar limestone.

In addition to the ancient and organic, the house has the modern and the electronic, including a home theater in the lower level, AMX integrated home audio and video system and a wine cellar, according to specs from the builder. It also has five furnaces, a separate boiler system to provide hot water and radiant heat in the master suite and two 175-gallon tanks providing 350 gallons of 120-degree water every hour.

How long does such a house take to build? From concept to finish, about four years, Vanselow said, with three years of that in construction.

----------

Wayne Faulkner is editor of Real Estate. You can contact him at wfaulkner@tribune.com, or by mail at Chicago Tribune, 435 N. Michigan Ave., Chicago, IL 60611.

geoff_diamond

May 20th, 2005, 02:02 AM

Couple of additions for this long-dead thread.

I noticed, a few nights ago, a new sign adorning what used to be the Noble Fool. Looks like it will be called the Argo Tea Cafe now - no information on what it is or when it's going to open.

http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/miscellaneous_05160501.jpg

Secondly, I peeped this juicy little tidbit on a walk through River North a few mins ago - looks like some soil-bore testing going on at the parking lot located on the southwest corner of Dearborn and Hubbard. Please o' please let this be the death-knell for yet another surface-lot!!!

http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/miscellaneous_05190501.jpg

24gotham

May 20th, 2005, 05:07 AM

Couple of additions for this long-dead thread.

I noticed, a few nights ago, a new sign adorning what used to be the Noble Fool. Looks like it will be called the Argo Tea Cafe now - no information on what it is or when it's going to open.

http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/miscellaneous_05160501.jpg

I was noticing this the other day as well. It would be nice to see something fill the gap left by the Noble Fool. I find it a bit odd that they would use theater space for a cafe... hmmmmm

wrabbit

May 21st, 2005, 09:42 PM

There is an Argo Tea at Armitage and Sheffield - the first (test) store, I believe. Think Starbucks, but with an emphasis on tea rather than on coffee.

geoff_diamond

May 22nd, 2005, 01:03 AM

Well, not my first choice, but, it beats the hell out of vacancy.

Chi_Coruscant

May 26th, 2005, 08:01 AM

There was a little chatter at SSP about 4th Presbyterian proposal was shot down by the city. Can anyone confirm it? :wtf:

Chi_Coruscant

May 26th, 2005, 03:11 PM

Alderman opposes tower by landmark church

May 26, 2005

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters Advertisement
(www.suntimes.com)
Downtown's alderman Wednesday issued a thumbs-down review of the most controversial development on the city's agenda, the plans for a 64-story tower immediately west of the landmark Fourth Presbyterian Church at Michigan and Delaware.

Far from just another commentary on the project, the letter from Ald. Burton Natarus (42nd) diminishes chances it will win city approval, at least in its current form. The developers need a zoning change for the tower, and the City Council usually follows the wishes of the local alderman on such matters.

In a two-page letter, Natarus said the project's design has merit. But he assigned great weight to the opposition letters he received from those who live near the project. The letters supporting it, he said, tended to come from residents outside the Streeterville area.

Local residents, under the umbrella of such groups as the Streeterville Organization of Active Residents and the Connors Park Neighborhood Coalition, complained the tower would block views. They also said it would overwhelm the serenity of the church, whose sanctuary and garden offer a refuge amid the rush of Magnificent Mile shopping.

"What is proposed is a beautiful architectural piece, which should be built elsewhere -- on a site with open space," Natarus wrote. "The overwhelming opposition to this development by nearby neighbors clearly indicates that the public health and welfare of the community will be impaired; and thus, I am obligated to report that I cannot support this application for development as outlined above."

The condominium tower would have gone up on land the church owned. Last year, it struck a deal with developers Edward James Partners LLC and Opus North Corp. to be paid $25 million for a long-term lease on the property.

The Rev. John Buchanan, pastor of Fourth Presbyterian, said Natarus' decision disappointed him because the project fit the guidelines published in the city's own central area plan. Buchanan and Jack Guthman, the zoning lawyer for the project, said they'll ask for a city hearing despite Natarus' opposition.

That would mean bringing the project before the Chicago Plan Commission, of which Natarus is a member. If it's approved there, it would go to the City Council.

"We understand there's a history of following the alderman's advice, but we'll have to deal with that issue because we believe in our cause here," Guthman said. He also said resorting to the courts is possible if the zoning isn't granted.

The developers said the high-rise would have been shorter than most of the other signature buildings along Michigan Avenue, such as Park Tower, Water Tower Place, the 900 N. Michigan tower and the strapping John Hancock Center. Many saw irony in Hancock residents complaining about the height of an adjoining structure.

Jim Houston, president of the Streeterville residents group, said Natarus respected local concerns about density and traffic. The building would have overwhelmed the block and "created a density that is unprecedented anywhere else in the city," he said.

Natarus could not be reached. The language in his letter indicated he'd be open to a compromise involving a smaller building.

Development is a constant issue in his ward and during the most recent aldermanic election in 2003, Natarus had a tough race. He won a relatively low 56 percent of the vote against a challenger who accused him of being too accommodating to builders.

Asked about drafting a compromise, Buchanan replied, "We haven't even begun that conversation yet."

The church's contract with the developers foresaw the possibility of city rejection. It provided for a lower payment, down to $13 million, if the city insisted on a smaller building.

As proposed, the 64-story tower would have included 240 condos plus about 74,000 square feet for the church's use.

paytonc

May 26th, 2005, 07:29 PM

"State and Adams for $275,000?

Um, it's a condo _hotel_. You're buying a hotel room, not an apartment, and it's aimed at people who might live there a few days a month, if ever. Price is only one part of what it costs to own; many of these buildings have high maintenance fees (assessments) since, after all, it's a hotel.

I highly doubt price escalation on that scale, as well.
.pc

Chi_Coruscant

May 27th, 2005, 02:50 PM

http://www.artic.edu/aic/visitor_info/groundbreak.html

Groundbreaking Ceremony for the Art Institute’s New Building
May 31, 2005
Celebration begins at 8:30 a.m. in the North Garden

PROGRAM of EVENTS

8:30 a.m. Performance by Redmoon Theatre
9:00 Chicago Children's Choir
9:15 Welcome by President and Director Jim Cuno and a reading by Chicago actor Roderick Peeples
Remarks by Mayor Richard M. Daley and John H. Bryan, chairman of the Art Institute’s board of trustees, and architect Renzo Piano
Performance by the Brass Ensemble of the Chicago Symphony Orchestra
10:30 Museum opens. See Renzo Piano’s designs for the new building in the exhibition Zero Gravity at the top of the Grand Staircase.
10:30–3:30 Gallery talks throughout the museum.
---------------------------------------------------------------------
Zero Gravity: The Art Institute, Renzo Piano, and Building for a New Century

Opens May 31
Gallery 200
Overview: In 1999, internationally recognized Italian architect Renzo Piano was commissioned to design the Art Institute’s new north wing. Piano’s plan, which makes imaginative use of natural light and blends of new architectural forms into an established urban fabric, has inspired this exhibition that not only provides a foretaste of the new addition but also evokes the stimulating environment of the Renzo Piano Building Workshop, where the architect’s singular visions take shape.

Located at the top of the Grand Staircase, Zero Gravity portrays Piano’s studio as a creative place where ideas develop, plans are drawn, and models crafted. On a large table, reminiscent of the one in his Paris office, working documents are displayed. Nearby walls bear plans and drawings that document the project’s development. The models on exhibit are crucial to understanding how the architect’s process. Two-dimensional plans are developed in three dimensions to fully analyze concepts of scale and space. Removed from the confines of a gallery, the work is incorporated into the museum’s own architecture, underscoring Piano’s commitment to designing a building integral to the historic whole.

Opening in spring 2009, the glass, limestone, and steel structure will add a 21st-century architectural identity to a museum best known for its grand 19th-century building on Michigan Avenue. The new wing’s distinctive feature will be a luminous sunscreen, described by the architect as a “flying carpet,” that will “float” above the actual roof and shelter the building and its immediate surroundings. The wing will provide new galleries for modern and contemporary art, while more than doubling classroom space for educational programs and adding a third, public garden court.

Many of the materials on view in the exhibition are reproduced in a 56-page catalogue illustrated with more than 40 color models, plans, renderings, and sketches. An essay by president and director James Cuno explores Piano’s approach to the design of the building, while curator Martha Thorne surveys his recent museum architecture. The book is available in the Museum Shop and online.

The Urban Politician

May 27th, 2005, 07:44 PM

Woohoo!

Let the tradition of greatness roll onward..

geoff_diamond

May 27th, 2005, 08:23 PM

This is a big surprise. I can't remember the last time I saw Natarus shoot down such a prominent project. At the same time, I imagine he's looking toward the future and election-time, at which point an angered SOAR and Connor's Park group might be all that's needed to oust him.

Personally, this sort of opposition still makes me gag - if you're concerned about losing your view, buy a condo on Lakeshore. Otherwise, shut up. If you're concerned about too much traffic and density, buy a house in Naperville. If you're concerned about your property values faling to appreciate at a high enough level for you, at least have the balls to admit it.

SOAR makes me fucking sick... this project isn't even IN Streeterville, yet they find a way to stick their noses in it and probably get it shelved. And, for those people in the Hancock complaining about losing a view... what, exactly, are you losing a view of? Chicago's beautiful west side? Give me a fucking break.

Latoso

May 28th, 2005, 02:14 AM

NIMBYs must die! :bash:

ChicagoLover

May 28th, 2005, 07:56 AM

I never thought the 4th Presbyterian tower looked all that impressive from the renderings, so I think this loss is very minor. The design for the tower was no better than the Lancaster. Average, nothing sensational. I don't know what Natarus is talking about in fawning over the design of this proposed tower. There are many other buildings under construction or proposed that far exceed this tower in quality.

This news is actually good in a way. We don't want mediocre-to-average buildings soaking up residential demand, thus indirectly jeopardizing the viability of better-designed buildings on the drawing boards.

Also, I'd rather demand be spent on buildings on streets that most need it, namely Wabash.

All of that said, SOAR is a case of intelligent people being dishonest or foolish or both.

ChicagoLover

May 28th, 2005, 08:12 AM

^We should remember that it is unlikely that all of the buildings on the drawing boards will get built. The absence of competition from 4th Presbyterian will make it more likely that demand is high enough to bring FAR superior buildings like 65 East Huron into existence.

I think one of the reasons forumers have been routing for this building in such a strong way has less to do with the merits of the building's designs than with the desire to defeat the enemy SOAR.

geoff_diamond

May 28th, 2005, 07:05 PM

I honestly don't even remember what 4th Pres looks like at this point (that can't be a good sign - I always remember good buildings). I do agree wit ChicagoLover though, we should be using the demand to spark development in places that need it. No sense in cramming another high-rise somewhere it's not needed when there's pleanty of surface lots just screaming for redevel.

edsg25

May 28th, 2005, 09:52 PM

ChicagoLover

May 29th, 2005, 02:09 AM

I was under the impression that the alderman's decision was final, and that the other procedures were formalities. So the alderman's letter would be the death knell for 4th Presby. tower. Am I wrong?

2PRUROCKS!

May 29th, 2005, 03:21 AM

[QUOTE=Chi_Coruscant]http://www.artic.edu/aic/visitor_info/groundbreak.html

Groundbreaking Ceremony for the Art Institute’s New Building
May 31, 2005
Celebration begins at 8:30 a.m. in the North Garden

Opening in spring 2009, the glass, limestone, and steel structure will add a 21st-century architectural identity to a museum best known for its grand 19th-century building on Michigan Avenue.

What's the deal with ground breaking on this on Monday and it not being finished for 4 years? Is this thing really going to take that long (Sears, JHC, Aon, Trump all took or will take less)? Or is this some sort of cermonial groundbreaking and real work won't start for awhile like Feeedom Tower?

edsg25

May 29th, 2005, 06:27 AM

Alderman opposes tower by landmark church

May 26, 2005

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters
Advertisement

Downtown's alderman Wednesday issued a thumbs-down review of the most controversial development on the city's agenda, the plans for a 64-story tower immediately west of the landmark Fourth Presbyterian Church at Michigan and Delaware.

Far from just another commentary on the project, the letter from Ald. Burton Natarus (42nd) diminishes chances it will win city approval, at least in its current form. The developers need a zoning change for the tower, and the City Council usually follows the wishes of the local alderman on such matters.

In a two-page letter, Natarus said the project's design has merit. But he assigned great weight to the opposition letters he received from those who live near the project. The letters supporting it, he said, tended to come from residents outside the Streeterville area.

Local residents, under the umbrella of such groups as the Streeterville Organization of Active Residents and the Connors Park Neighborhood Coalition, complained the tower would block views. They also said it would overwhelm the serenity of the church, whose sanctuary and garden offer a refuge amid the rush of Magnificent Mile shopping.

"What is proposed is a beautiful architectural piece, which should be built elsewhere -- on a site with open space," Natarus wrote. "The overwhelming opposition to this development by nearby neighbors clearly indicates that the public health and welfare of the community will be impaired; and thus, I am obligated to report that I cannot support this application for development as outlined above."

The condominium tower would have gone up on land the church owned. Last year, it struck a deal with developers Edward James Partners LLC and Opus North Corp. to be paid $25 million for a long-term lease on the property.

The Rev. John Buchanan, pastor of Fourth Presbyterian, said Natarus' decision disappointed him because the project fit the guidelines published in the city's own central area plan. Buchanan and Jack Guthman, the zoning lawyer for the project, said they'll ask for a city hearing despite Natarus' opposition.

That would mean bringing the project before the Chicago Plan Commission, of which Natarus is a member. If it's approved there, it would go to the City Council.

"We understand there's a history of following the alderman's advice, but we'll have to deal with that issue because we believe in our cause here," Guthman said. He also said resorting to the courts is possible if the zoning isn't granted.

The developers said the high-rise would have been shorter than most of the other signature buildings along Michigan Avenue, such as Park Tower, Water Tower Place, the 900 N. Michigan tower and the strapping John Hancock Center. Many saw irony in Hancock residents complaining about the height of an adjoining structure.

Jim Houston, president of the Streeterville residents group, said Natarus respected local concerns about density and traffic. The building would have overwhelmed the block and "created a density that is unprecedented anywhere else in the city," he said.

Natarus could not be reached. The language in his letter indicated he'd be open to a compromise involving a smaller building.

Development is a constant issue in his ward and during the most recent aldermanic election in 2003, Natarus had a tough race. He won a relatively low 56 percent of the vote against a challenger who accused him of being too accommodating to builders.

Asked about drafting a compromise, Buchanan replied, "We haven't even begun that conversation yet."

The church's contract with the developers foresaw the possibility of city rejection. It provided for a lower payment, down to $13 million, if the city insisted on a smaller building.

As proposed, the 64-story tower would have included 240 condos plus about 74,000 square feet for the church's use.

edsg25

May 29th, 2005, 06:29 AM

[QUOTE=Chi_Coruscant]http://www.artic.edu/aic/visitor_info/groundbreak.html

Or is this some sort of cermonial groundbreaking and real work won't start for awhile like Feeedom Tower?

perhaps donald trump thought the new addition to the Art Institute was ugly and lacked class.

Latoso

May 29th, 2005, 10:29 AM

[QUOTE=2PRUROCKS!]

perhaps donald trump thought the new addition to the Art Institute was ugly and lacked class.
:rofl:

geoff_diamond

May 29th, 2005, 06:53 PM

Like ChicagoLover said, what Natarus says pretty much goes. If he gave the project, in its current state, a thumbs down - don't expect to see it built unless some major changes are made and he approves them.

edsg25

May 30th, 2005, 12:00 AM

I have a question on legality. I'm going to assume it is a non-issue, but pose it just the same.

Bernie Natarus publically let 4th Pres and the developers what guidelines he'd accept for this tower to proceed.

the church and the developers operated on good faith in redesigning the tower to meet the city's needs.

that's a helluva lot of time, effort, and, most importantly, $$$$$$$$$ that is used to design a major building. I realize there is a certain amount of "you buy your ticket and you take your chances" to this situation.

Still, the alderman had made it clear what it would take to gain approval.

Do the church and developers have any legal options here? Can they sue on this basis of their costs? also on the lack of good faith on Natarus's part?

Hey, it's a relatively short walk from 4th Pres to the other side of the river on LaSalle.....I believe there are some great legal minds there who could answer my question.

paytonc

June 1st, 2005, 03:27 AM

"I have a question on legality. I'm going to assume it is a non-issue, but pose it just the same."

It is a non-issue. Chicago zoning, especially in the 42nd ward, follows no rhyme, logic, or reason (much less a comprehensive plan, which it is legally required to do), and very few Illinois courts are going to rule against the city even though it clearly violates the federal courts' dictum that law may not be "arbitrary or capricious." In any case, the above applies only to as-of-right zoning; denying a Planned Development application would never be grounds for a suit.

Also, Natarus is just one alderman *but* City Council tradition says aldermen defer to one another on "local" matters like land use.

Not that I really care in this case: I've enjoyed many a lunch hour sunning at the Hancock plaza, and the tower would have completely blotted out that one rare bit of urban breathing room.
.pc

Chi_Coruscant

June 2nd, 2005, 09:41 PM

Though insignificant, it is interesting to read this:

State will renew tax break for movies and TV

By Bob Tita (www.chicagobusiness.com)
Illinois plans to extend a tax incentive to attract movie and television productions to the state.
The General Assembly this spring approved a one-year extension of a tax credit for motion pictures and television shows filmed in the state. Gov. Rod Blagojevich says he’s satisfied with the results of the tax program and plans to sign the extension.

“We’ve always had the locations, local talent and expertise to compete with any other location as a top-flight destination for motion pictures and television productions,” the governor said in a written statement.
The legislation was enacted in 2003. State officials say production companies spent $77 million in the state last year and employed 15,000 people, compared to 2003 when $25 million was spent and 5,000 people were employed. The state attributed the 2004 increase to several motion pictures filmed in the state.

Among the major studio pictures filmed in Illinois last year were “Ocean’s 12,” the latest installment of the “Batman” movie series and “The Weather Man.”

The Illinois Department of Commerce and Economic Opportunity says at least five movies will use Illinois locations in 2005, plus a new Fox network television show will be filming in the shuttered Joliet Correctional Center.

The tax legislation allows production companies to receive a tax credit equaling up to 25% of the wages paid to Illinois residents employed in movie and TV productions. To qualify, the productions must be at least 30 minutes long and incur Illinois labor costs of at least $100,000.

Jack Lavin, commerce and economic opportunity director, said companies would look elsewhere if Illinois abandoned the tax incentive.

“We’re competing with other states and communities,” he said Wednesday. “If they would not have gotten this tax credit they wouldn’t be coming here.”

BVictor1

June 3rd, 2005, 02:23 AM

6/1/2005 10:00:00 PM
Developers aim at Target range
Potential new neighbors eye Clark and Roosevelt

http://www.chicagojournal.com/SiteImages/Article/415a.jpg
Photo by Haydn Bush
Target could soon share Clark Street with two modern condo towers and an upscale grocery store.

By HAYDN BUSH, Staff Writer

South Loop
For now, Target sits alone atop the Roosevelt Road bridge, the first anchor of a looming retail explosion on the busy South Loop thoroughfare. Across Roosevelt lies former swamp land proposed as the future home of the Riverside Park mixed-use development, which is currently being reviewed by the Chicago Department of Planning and Development.

And surrounding Target are a handful of parcels that comprise one of the largest remaining undeveloped South Loop spaces. But not for long.

Just up Clark Street from Target, the South Loop-based D2 development firm has an option to buy a swath of vacant property near Taylor, which would be the future site of two mixed-use developments anchored by retail on the ground floor and several floors of condos above.

And plans are afield for Target’s next-door neighbor as well. According to a report last week in Crain’s, Centrum Properties is proposing a new retail center at Roosevelt and Wells, which would likely compete with Riverside Park and other nearby retailers. Centrum officials did not return calls for comment this week.

D2 principal David Kleiman, who lives on Wells Street in the South Loop, envisions two modern towers rising up on the part of Clark Street just north of Target. Kleiman, who is partnering with Atlanta-based developer Norman Radow and his Radko firm, is unimpressed by the high-rises going up in Museum Park and elsewhere in South Loop, and is close to signing an architect who will be charged with designing two modern new towers.

“We like modern architecture,” Kleiman said. “We think the buildings that have been going up [in the South Loop] are so utterly retro-uninteresting. It’s just a shame. It will be a fantastic building. “

Kleiman said the buildings would likely include a retail base, parking, and an amenity deck with health club facilities. He added that D2 is hoping to hire an architect within the next few weeks, and hopes break ground on the project by next fall.

Kleiman hopes to land a full-service grocery along the lines of Trader Joe’s, and expects to draw customers who stop in at Target before hitting up his stores.

“Target is almost our anchor,” Kleiman said.

Near South Planning Board Executive Director Bonnie Sanchez-Carlson, who has not seen the plans for either project, is nonetheless enthusiastic about bringing one of the last remaining bits of South Loop wilderness to the city tax rolls.

“The idea of retail along Roosevelt definitely fits in with what we had proposed,” Sanchez-Carlson said. “ ... We feel Roosevelt Road would make a great retail corridor.”

In the meantime, Kleiman is hoping the city will do its part to spruce up a somewhat forbidding corridor for pedestrians, on a street that takes more than its share of traffic linking the South Side with downtown. He’d like to see Dearborn Park opened up to pedestrians, and a crosswalk connecting the development with the other side of Clark Street would help as well.

“Clark Street is kind of a superhighway,” Kleiman said. “ ... You could do 70 miles per hour and nobody would ever notice.”

And despite the years of planning at nearby Riverside Park, which has lain fallow since a bend in the Chicago River was straightened in the 1930, Kleiman is optimistic that he can break ground far before his neighbor to the south, and potentially sign up retailers far ahead of Rezmar.

“We can walk into the building department for a permit,” Kleiman said, without any need for new streets and sewers.

The Urban Politician

June 3rd, 2005, 10:01 AM

^Dude, somebody's not reading my posts....

I already posted that!

BVictor1

June 3rd, 2005, 05:08 PM

Wednesday, May 11, 2005
Plan approved to redevelop Loop Toys R' Us site

54,500-square-foot building to be subdivided for smaller tenants

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

The Chicago City Council today approved an ordinance that would redevelop and lease the now vacant three-level retail space at 10 S. State St. that once house Toys R' Us.

The $16.2 million plan calls for the 54,500 square foot building to be subdivided, allowing for the creation of smaller retailer spaces, an upgraded storefront system and improved signage.

The developer, Ten South State LLC, is working with several retailers, including Urban Outfitters, which will occupy a portion of the first and second floors, and Office Depot, which plans to operate out of the basement level, leaving approximately 17,000 square feet for other retailers.

The redevelopment also will include the creation of 50 full-time and 30 part-time positions when the retailers open, as well as 65 full-time jobs during the construction phase of the project.

The building was constructed in 1995 and was entirely occupied by Toys R' Us until 2002. The redevelopment plan includes a green roof, covering 75 percent of the available roof area, to assist in the city's on-going environmental efforts to improve air quality, reduce surface temperatures and conserve energy.

The developer also will donate $25,000 to the Christopher House, a seven-site family resources center devoted to child and youth development, parent enrichment, literacy, counseling and emergency services.

The project is being assisted with $2.5 million in Tax Increment Financing from the city.

BVictor1

June 5th, 2005, 02:28 PM

CITY REPORT
19-story condo building is set for 13th and State

By Jeanette Almada
Special to the Tribune
Published June 5, 2005

Construction of a mixed-use, 19-story building will begin this summer at 13th and State Streets in the South Loop.

The building, to rise on 0.81 acre at 1255 S. State St., is being developed by 13th & State LLC., which consists of a partnership of Chicago-based Park Development Group, Westchester-based Renaissant Development and Chicago-based Construction Consulting Services.

The company has owned the site since 2000, Renaissant principal Warren Barr said in an interview last week.

"I have developed extensively in the South Loop before, and believe that there is a resurgent market for units there. It is a wonderful location that is at a mid-point of the South Loop neighborhood with good access to public transportation, with many good restaurants right in area, a new Jewel [Food Store] next door, and a lot of night life," Barr said.

The Plan Commission last month approved the project as a planned development. City Council must still give its approval.

Called Vision on State, the building will consist of mostly one-bedroom units, with some two- and three-bedrooms, according to Barr. The WiFi-ready units will have from 610 to 1,602 square feet with based prices from $170,000 to $300,000.

Parking spaces are an additional $30,000, Barr said.

Designed by Pappageorge Haymes Ltd., Chicago, the building will have 14,000 square feet of ground-floor retail space.

The units being sold by @ Properties and a sales center is scheduled to open on site by August, according to Barr, who added that 50 percent are spoken for.

Construction will begin in early next month and first occupancies will be in fall 2006, Barr said.

BVictor1

June 5th, 2005, 02:32 PM

CITY REPORT
Condos to rise near Brown Line in River North

By Jeanette Almada
Special to the Tribune
Published June 5, 2005

The River North neighborhood will get another 235 condos and 12,000 square feet of retail in the form of a $70 million mixed-use development slated for Ohio Street, between Franklin and Orleans Streets.

Through a development entity called Woodlawn Development LLC, Oakbrook-based Stonegate Development will build a condo tower in a project that will also rehab the 80-year-old, seven-story Bowne Building, at 325 W. Ohio St.

The project won Chicago Plan Commission approval last month as a planned development, which was needed because of the project's size.

Woodlawn Development has owned the 0.74-acre site (at 301-33 W. Ohio; 541-49 N. Orleans; and 540-48 N. Franklin) since 2003, Stonegate Development President Sam Persico said in an interview last week.

Sixty percent of the condominiums will be one-bedrooms and one-bedrooms with dens, and the remaining 40 percent will be two-bedrooms. The units range from 750 to 1,250 square feet with based prices from $250,000 to $500,000, Persico said.

The tower at 303 W. Ohio, designed by Chicago-based Hartshorne + Plunkard, "will be a glass sculpted building, and so all of the units will have 10-foot glass from the floor to the ceiling," Persico said, adding that every unit will have a terrace or a balcony.

In lieu of including affordable units in the project, the developer will contribute $1.2 million to the Chicago Department of Housing's Affordable Housing Fund, which the department uses to subsidize construction of affordable units elsewhere in the city.

The developer received a density bonus -- that is, approval to build more units than normally would be allowed -- because of the donation, because the developer agreed to rehab and thus save the Bowne Building; and because it has agreed to build a green roof on the condo tower.

A 10th-floor "sky lobby" will have a fitness room and a common area that building residents can use as a meeting or party room, Persico said.

Stonegate will rehab the Bowne Building into a mix of retail and office space. The project will add about 12,000 square feet of retail space to the neighborhood, Planning Department staff told the Plan Commission.

"We have not selected retail tenants yet and are looking for retailers who will serve residents and the neighborhood," Persico said. Oakbrook-based Mid-America Asset Management Inc. is marketing the retail.

Condo sales will begin in late summer from a center in the Bowne Building, Perisco said. Construction is scheduled to begin by February.

BVictor1

June 5th, 2005, 02:39 PM

High-living seniors

June 5, 2005

BY LARRY FINLEY Real Estate Reporter

When the Clare at Water Tower is completed in 2007, it will look like a gleaming 53-story residential high-rise just off of Michigan Avenue.

It will be that, but it also will be a new idea in senior living in the midst of the city.

"We have a wonderful corner," said Campbell Palfrey III, marketing director. "There are other high-rise communities in other cities. But, there is nothing that is located the equivalent of just a block off of North Michigan Avenue right in the heart of it all."

Tens of thousands of homes have been sold to seniors in age-restricted communities in the suburbs in recent years. But, there are also enough members of the senior generation with the desire, and the capital, to afford being "in the heart of it all" with all of the additional deluxe services of a luxury hotel.

More than half of the 253 units in the independent-living section of the tower have been sold at prices ranging from about $520,000 to $1.2 million for 1 to 3 bedrooms.

"About 60 percent of the buyers are couples," Palfrey said. "Most couples are going for the 2 bedrooms. A few want the 1 bedrooms."

In greater demand than expected has been the large, 3-bedroom, 2-bath Hampton model with a view of Lake Michigan. It faces east from the master-bedroom suite, the 12-by-16-foot living room and the 11-foot-wide balcony. A large dining room, with a fireplace, and a separate breakfast area adjoin the living room.

Sizes start at about 800 square feet for a 1-bedroom unit and range to 1,800 square feet for 3 bedrooms. The units have washers and dryers, all-electric kitchens, individual heating and cooling, sprinklers, smoke detectors, extra storage areas, high-speed Internet, cable TV and 24-hour emergency service.

Sample rooms and displays of carpets, tile and other materials are available at the Clare at Water Tower sales suite set up on the 36th floor of the nearby John Hancock Center. Call (312) 951-5690.

Demolition for the new tower will begin this spring at the southwest corner of Rush and East Pearson. The current building there, the Pere Marquette Center, was part of the Loyola University Water Tower campus.

"Several of our depositors attended classes in those buildings," Palfrey said. "So there is a nostalgic touch involved there."

The depositors thus far have been fairly representative of a cross section of older buyers who might have looked for a home in a luxury condominium in the Gold Coast.

"We have a lot who live downtown and want to remain downtown," Palfrey said. "They see the Clare as the perfect way to do that. We also have people who went to school at Loyola or spend a lot of time downtown now. Others spent some of their youth working or living downtown, but went to the suburbs to raise a family. They are empty-nesters and want to come back to where the action is."

A small number have never lived downtown, but want to be close to Lake Michigan, the shops, the museums and the theaters, he said.

"Many of our owners will have two homes," he said. "One here and the other down in Florida or Arizona or one of the sunshine states."

The building is senior restricted, at least one member of a couple must be 62 years of age or older. The monthly fees start at $2,395 and will go to $4,590. All utilities except telephone are included. There will be no real estate taxes or special assessments.

"The second person is always $895 a month, regardless of the apartment," he said. "That is for a service package that is quite extensive. That includes as many meals a month as there are days in the month. They don't have to use them one a day. They can use them any time they want to. We will service a complimentary continental breakfast daily."

In addition to luxury-hotel style meals, the package includes weekly housekeeping and linen service, valet parking, concierge and doorman service, a bank and postal center and planned social events and activities.

"We will have a full-time 'lifestyle coordinator,' which is a fancy phrase for an activities coordinator," Palfrey said. "That person will organize events to visit museums, theaters and other cultural and entertainment venus around the city. We will also have lectures and other activities in the community, based on their interests and input.

"We will have the whole 9th floor as the fitness level," he added. "There will be a beautiful outdoor terrace, the fitness center, a swimming pool and a day spa. We will have 35,000 square feet of commons area throughout."

There will be a beauty salon and barbershop on the 9th floor also. The kitchen and main dining room will be on the 17th floor, along with a private dining room and a large lounge area. The 19th floor will have a performance center, art gallery, media and computer room, business center and library. At the top, on floor 52, there will be a large terrace area and a clubroom with views of the lake and the city.

In addition to the units for independent adults, there will be residences for assisted-living and private nursing care as well as a center for memory enhancement.

The Clare at Water Tower is a partnership between the Franciscan Sisters of Chicago Service Corporation and Loyola University, which will maintain a small classroom and educational area on the ground floor.

"The Clare is non-denominational and ecumenical," Palfrey said. "We already have reservations from many different faiths."

The Clare at Water Tower information center is in suite 3660 at the John Hancock Center, 875 N. Michigan. (312) 951-5690.

The Urban Politician

June 5th, 2005, 07:03 PM

geoff_diamond

June 5th, 2005, 08:19 PM

Demolition for the new tower will begin this spring at the southwest corner of Rush and East Pearson. The current building there, the Pere Marquette Center, was part of the Loyola University Water Tower campus.

Does this mean demo begins in a year, or does this guy still think it's Spring outside?

Chi_Coruscant

June 7th, 2005, 12:39 AM

$30M Will Convert Office Building to Condos
By Mark Ruda (www.globest.com)
Last updated: June 2, 2005 06:18pm
CHICAGO-The office condominium concept is making its way from the West Loop to the East Loop. Timothy Farrell’s FIC Development Group has announced plans to acquire 111 N. Wabash Ave., a 22-story, 259,000-sf building in the city’s Jeweler’s Row District, and convert it to office condominiums next spring.
Late last year, Hamilton Partners sold its 160,000-sf office building at 211 W. Wacker Dr. for $15 million to Ameritus, which divided the 18-story asset overlooking the Chicago River into space blocks ranging from 2,200 sf to 25,000 sf. Although terms were not disclosed, the most recent property assessment for the Garland Building at 111 N. Wabash Ave. puts its value at $34 million.

With occupancy at 82%, the Garland Building at the northeast corner of Washington Street and Wabash Avenue is home to 260 doctors, one of the largest collections of physicians in the city outside of a hospital campus, according to L.J. Sheridan & Co., which has been hired to sell the office condominiums. L.J. Sheridan & Co. already handles building management and leasing. The 91-year-old building’s 47,000 sf of retail space includes original Heaven on Seven restaurant as well as a Staples office supply store. The lobby was recently renovated by the limited liability corporation that owns the building, which also is wired for high-speed Internet service.
---------------

You oughta stop by at Heaven on Seven, located on 7th floor in the same building for a bowl of gumbo! It opens 11am-4pm (I think) on weekday.

geoff_diamond

June 7th, 2005, 04:33 AM

Anyone care to explain what, exactly, an office condominium is?

wickedestcity

June 7th, 2005, 06:16 AM

i guess it means a once office building thats been converted into condos

The Urban Politician

June 7th, 2005, 06:17 AM

Anyone care to explain what, exactly, an office condominium is?

^ Office space owned by the person using it, instead of being leased. In other words, it's still office space--it's not a residential conversion.

Not particularly exciting, if you ask me. I'd rather hear about skyscraper construction...

geoff_diamond

June 7th, 2005, 05:54 PM

I had suspicion that it might be similar to hotel-condo units and it is. You're right TUP... pretty boring stuff.

Rascacielos

June 8th, 2005, 05:53 PM

Saw a sign for this on my way to work this morning:

http://www.theazuretower.com

Address is 1330 S. Michigan Ave.

geoff_diamond

June 8th, 2005, 07:15 PM

Thank god we've finally perfected the practice of airlifting entire buildings from Miami to Chicago. This should make the development of the South Loop much quicker in the future!

The building's been listed on the Boom Rundown over at SSP for a while. There's also a link (http://www.emporis.com/en/wm/bu/?id=215544) (<-- click) to it at Emporis.

HowardL

June 8th, 2005, 10:48 PM

- edit

geoff_diamond

June 8th, 2005, 11:35 PM

This project still cracks me up. It's going to be so narrow!!! Should look interesting standing right next to Mather Tower (also incredibly narrow).

Chi_Coruscant

June 9th, 2005, 12:42 AM

Saw a sign for this on my way to work this morning:

http://www.theazuretower.com

Address is 1330 S. Michigan Ave.

I propose that Azure be gifted to Miami from us, the Chicago forummers. :|

geoff_diamond

June 9th, 2005, 07:52 PM

Wouldn't that be considered re-gifting (since I'm pretty sure they're the ones who "blessed" us with this one to begin with)?

geoff_diamond

June 10th, 2005, 06:17 AM

I was greated with a pleasant little surprise when I got home tonight. I sat down at the computer and thought "what the hell is that blinding light outside?" Well, that blinding light would be the fancy new theatrical lighting that adorns the Heritage at Millennium Park. I can only attest to its existance on the west facade, but, I would assume there's something on the east as well (I'll try to check that out tomorrow).

I never did get the hang of taking night-shots with a digicam, but, here it is anyway. Perhaps Devyn could do a better job for us?

http://img.photobucket.com/albums/v240/geoff_diamond/Chicago%20-%20Construction/heritage_06090501.jpg

2PRUROCKS!

June 10th, 2005, 06:42 AM

I noticed some lighting on the top of the east side of the Heritage last night. It was a small purplish light behind the newly installed glass that covers the mechanical penthouse at the top. I would guess they were just testing a small portion of it and it will be much larger when the building is complete.

Chi_Coruscant

June 10th, 2005, 01:32 PM

Condo plan would raze McCormick birthplace

By Jeanette Almada
Special to the Tribune
Published June 10, 2005

Preservationists seemed resigned Thursday to the demolition of the Streeterville birthplace of longtime Chicago Tribune editor and publisher Col. Robert R. McCormick to make way for a condo and retail tower.

The Chicago Plan Commission approved the 51-story building last month as a planned development on Ontario Street, just east of Michigan Avenue. Developed by Monaco Development, it would have 160 condominiums from the 16th floor up, retail space in the basement and on the ground and second floors, plus parking for 180 cars in between, according to Kathy Caisley, a project manager for the city's Department of Planning and Development.

The development site is 148-158 E. Ontario St., according to the Planning Department, though some of the five buildings on the site may have dual addresses. Caisley said Monaco will demolish all the buildings. Officials from Monaco declined to comment about the project.

McCormick was born in 1880 in the gabled-roof rowhouse at 150 E. Ontario St. The Illini Bar now occupies the building's ground floor.

David Bahlman, executive director of the Landmarks Preservation Council of Illinois, said, "We have heard some rumblings about [the planned demolition], but we are not taking any action."

Another preservation group held out more hope, however.

"We are not trying to stop the project, we are just trying to save one building at the west edge of the development site," said Michael Moran, vice president of Preservation Chicago.

The preservation advocacy organization says it has talked with Planning Department Commissioner Denise Casalino and also with the department's Landmarks Division about saving the building.

"The city has not expressed support for our position and has not sought preservation for the building," Moran said. "We are exploring options ... and feel that the development can still be built while saving the westernmost building, which from our standpoint is an attractive slice of Chicago history."

McCormick, who died in 1955, "was an eccentric, but he was our eccentric," Moran said. "Later, the building was used as a key club during the speak-easy days, and eventually became a club called the Key Club.

"It is a question of how aggressive we are going to be about saving buildings that reflect our history. Every brick in this building is original, except one [that replaced a brick] embedded in the Tribune Tower, and we think it is wrong if that embedded brick is the only one from this building to remain."

That view, however, is not shared by the city.

"It has been suggested by some that it should be landmarked, but it is not an orange-rated building [highest on the city's endangered list], does not look anything like it did when he [McCormick] was born there, was altered significantly in the 1920s," said Constance Buscemi, spokesman for the Landmarks Division of the Planning Department. "And we don't believe that it warrants landmarking in light of all those factors."

Businesses occupying the 0.29-acre site include two popular restaurants: Bice and O'Neil's bar and grill.

The Plan Commission approved the project May 19. Monaco negotiated a density bonus with city officials that allows it to build more units than zoning laws would normally permit.

In return, Monaco agreed to donate $1.6 million to the Chicago Department of Housing's Affordable Housing Fund and also agreed to several building setbacks, according to Caisley.

Monaco has to present final details to the Planning Department before obtaining a building permit, said Caisley, who stressed that the proposal would not have to go back to the commission for final approval.

The only objections expressed to the commission last month came from a member of the Streeterville Organization of Active Residents, who told commissioners that its members worry about potential problems from heavy traffic on St. Clair Street and plans to eventually open a sidewalk cafe on Ontario, where the sidewalk is narrow.

Chi_Coruscant

June 10th, 2005, 01:35 PM

Kirkland firm joins flight to new towers
Lawyers shaking up downtown market
By Thomas A. Corfman
Tribune staff reporter
Published June 10, 2005

In a move sure to shake up the downtown office market, Kirkland & Ellis LLP has signed a tentative agreement to anchor a skyscraper proposed by Hines Real Estate Interests LP for a site along the Chicago River at LaSalle Street.

The 1,000-lawyer firm has signed a non-binding letter of intent to lease 600,000 square feet in the tower, to be completed in 2009, confirmed Douglas McLemore, administrator of the firm, which is being advised by real estate firm Staubach Co.

The new tower, with an address of 300 N. LaSalle St., will have at least 1.1 million square feet of space, said Gregory Van Schaack, a senior vice president in Hines' Chicago office. A deal with Hines had been expected since late February, when Kirkland began talks with developers.

Kirkland would be the third big law firm to move to a new high-rise, joining rivals Mayer, Brown, Rowe & Maw LLP and Sidley Austin Brown & Wood LLP.

Kirkland expects the 55-story tower, to be designed by architect Jon Pickard of New Haven, Conn.-based Pickard Chilton Architects Inc., to give the firm renewed prominence.

"We talk about taking the architectural tour down the river and it be pointed out that it's a noteworthy building that houses Kirkland & Ellis," McLemore said.

The deal, one of the largest leases in the city's history, reflects several trends in the downtown market, including the strong growth of law firms and the magnetic attraction that new office towers seemingly have for tenants.

Kirkland would move from Aon Center, its home since 1972, becoming the latest big-name tenant to migrate westward from an area that was once a premier office location.

"The East Loop is always the poster child of market abuse," said Richard Schuham, executive vice president with tenant representative firm Studley Inc., which isn't involved in the deal.

Kirkland is the second-largest tenant in Aon Center, 200 E. Randolph St., with about 450,000 square feet of space

Aon Center's owner, Wells Real Estate Funds, held out some hope that talks with Kirkland might resume, noting that most of the firm's space in the prominent 80-story tower is under lease until 2011.

"If it doesn't work out, given the lead time and the fact that it is the Aon Center, we are certainly optimistic about our ability to re-lease that space at appropriate terms," said Richard Matthews, a spokesman for the suburban Atlanta real estate firm.

Ironically, the former Amoco Building was renamed Aon Center in 1999 after the Chicago-based insurance firm moved to the building from Wacker Drive, a rare instance of a high-profile tenant moving eastward.

But in recent years many tenants have taken advantage of new office towers that are closer to the commuter train stations and expressways. Mayer Brown, for example, is moving from 190 S. LaSalle St. to Hyatt Center at 71 S. Wacker Drive later this year.

Yet Kirkland isn't moving as far west as some others, such as Deloitte & Touche LLP, which this year is moving to 111 S. Wacker Drive, where it will be the lead tenant in a 51-story skyscraper developed by Chicago-based John Buck Co. The accounting giant is moving its main Chicago office from Two Prudential Plaza, 180 N. Stetson Ave., which was built during the last building boom in the 1980s.

Kirkland also has about 100,000 square feet of space in the nearby One Prudential Plaza, 130 E. Randolph St.

The opportunity to consolidate offices into a single building was an important factor in Kirkland's decision, but the move won't come cheap.

At the new tower, sources said, Kirkland will nearly double its net rent, which in 2003 was $13.67 a square foot for most of its space, according to Wells.

McLemore declined comment on the lease terms, but noted that net rent is only one of several cost factors.

Operating expenses will be substantially lower in the new building, McLemore said. They are about $8.65 a square foot in Aon Center, according to an estimate by real estate research firm CoStar Group.

Because of the expected growth in the size of the firm, Kirkland thinks it would need about 750,000 square feet by 2009 if it stayed put. It expects to reduce that amount by about 25 percent at 300 N. LaSalle St. through several factors, including more efficient design and slightly smaller lawyers' offices. And those savings will multiply if Kirkland expands. The firm has an option to increase its space by 300,000 square feet.

In the new tower the floors will average about 26,000 square feet, said Hines' Van Schaack. Kirkland's space will probably be located below the 38th floor, leaving the top floors, which typically command higher rents, still to lease.

The new tower would be the third Chicago office building that Houston-based Hines has developed with a law firm anchor tenant. The others are 191 N. Wacker Drive., completed in 2002 and anchored by Gardner Carton & Douglas, and 1 S. Dearborn St., to be completed later this year and anchored by Sidley Austin.

"We've been able to show Kirkland what we've done for others," Van Schaack said.

BVictor1

June 10th, 2005, 01:55 PM

geoff_diamond

June 10th, 2005, 07:46 PM

I just hope they don't overdo it.

colemonkee

June 11th, 2005, 02:49 AM

Won't people who live in those upper floors get annoyed by those lights? By the way, that's a pretty kick-ass view you have.

geoff_diamond

June 11th, 2005, 05:51 PM

Well, since there are no balconies on that particular section of facade, I guess there's no units there. Could be the amenities floor or something?

Regarding my view... thanks :).

BVictor1

June 11th, 2005, 09:12 PM

Won't people who live in those upper floors get annoyed by those lights? By the way, that's a pretty kick-ass view you have.

That's what curtains are for. I think that those are some of the penhoouse units.

ThirdCoast312

June 12th, 2005, 12:39 AM

ChicagoLover

June 13th, 2005, 12:03 AM

Does anyone have a picture of 150 East Ontario? I couldn't find one on google.

geoff_diamond

June 13th, 2005, 12:10 AM

Here you go... 150 East Ontario.

http://img104.echo.cx/img104/4619/150eastontario015wi.jpg (http://www.imageshack.us)

geoff_diamond

June 13th, 2005, 12:12 AM

Time for some random progress shots of Prentice. I'm not sure if this is where I posted the few other times that I took pics of the hospital, but, I couldn't find a dedicated thread, so, here goes :)

http://img104.echo.cx/img104/391/prentice061205011dp.jpg (http://www.imageshack.us)

http://img104.echo.cx/img104/5572/prentice061205022yv.jpg (http://www.imageshack.us)

http://img104.echo.cx/img104/3462/prentice061205036xe.jpg (http://www.imageshack.us)

http://img104.echo.cx/img104/4693/prentice061205049sy.jpg (http://www.imageshack.us)

Chi_Coruscant

June 15th, 2005, 01:00 AM

- edit

ChicagoLover

June 15th, 2005, 01:12 AM

I was looking for pics of 150 East Ontario as it is today. Does anyone feel the loss of this building is worth mourning or not?

ChicagoLover

June 15th, 2005, 01:16 AM

I think all of Northwestern's Boul Mich buildings are really solid. The facades of the hospital buildings are particularly well-articulated. But the Evanston campus is another story. I heard a while back that Northwestern maintains a policy of hiring only local architecture firms. Can anyone confirm or deny this? What would be the point of this? As UofC has built interesting buildings of late with the services of world-renowned architects (e.g. new B-school--R. Vinoly, Ratner Athletic Center--C Pelli) NU's building projects seem to wallow in obscurity.

BTW, the new Prentiss reminds me a bit of the new Comer Children's Hospital at UofC. I'm not sure who designed Comer, but I think it too is a stellar addition to campus.

kayosthery

June 15th, 2005, 06:03 AM

The Urban Politician

June 15th, 2005, 06:09 AM

The area of "The Heritage" that is illuminated now is the two floors of penthouse that Oprah has purchased. Just kidding, we heard all sorts of celebrities were moving in while building Heritage. I know Daley is really moving in, but we also heard Ashton Kutcher and Oprah mentioned a few times.

LOL, actually what celebrities actually did buy a place? I know that Chicago isn't a celebrity-oriented town, but certainly it has its share of property owners

Chi_Coruscant

June 16th, 2005, 10:21 PM

- edit

The Urban Politician

June 17th, 2005, 12:04 AM

^Awesome.

But I wish somebody would actually start selling something, provide a rendering, or something. We've been hearing about development here for years. It won't amount to anything till somebody finally breaks ground

Frumie

June 17th, 2005, 02:20 AM

More South Loop condos planned
By Alby Gallun (www.chicagobusiness.com)
Roszak/ADC has signed a contract to buy the development site, currently a surface parking lot, and plans to close on the purchase in August, said Thomas Roszak, the firm’s founder and president.

:cheers1:

geoff_diamond

June 17th, 2005, 05:25 AM

LIGHTING-FEST 2005 CONTINUES!!!

In case anyone hasn't figured this out yet, I'm a big slut for theatrical lighting on skyscrapers. So, imagine my surprise when, for the FOURTH time in a week, I was greeted with a tasty little surprise outside my window tonight. First, it was the lights highlighting the columns atop the Heritage; then 2 Prudential flipped the power-switch back on after a two month dark-age; a few nights ago, the Heritage debuted some of the lighting (perhaps all of it, I suppose) that will be featured on its north facade (second picture in this post); and then tonight, MDA City Apartments (175 N. Wabash) turned on their own switch for the first time ever (first picture below). Subtle. Tasteful. Delicious!

175 N. Wabash featuring new theatrical lighting.
http://img296.echo.cx/img296/5540/175northwabash019yv.jpg (http://www.imageshack.us)

Five lights now adorn select balconies on the slender north facade of the Heritage.
http://img296.echo.cx/img296/4589/heritageatmillenniumparkthe018.jpg (http://www.imageshack.us)

geoff_diamond

June 19th, 2005, 09:05 AM

Just an update for anyone that cares (probably nobody besides me :P)... there are now seven lights on the north facade of the Heritage as opposed to the five shown in the picture above. Perhaps they will finally finish at least one thing on this tower.

BVictor1

June 19th, 2005, 02:25 PM

Condos feel at home on Michigan Avenue
`Absolutely prime residential corridor' evolves as vintage office buildings become residences

By John Handley and Sharon Stangenes
Tribune staff reporters
Published June 19, 2005

Is Michigan Avenue, the fabled street of world-class shopping, trendy restaurants and office buildings instead becoming Chicago's version of New York's Park Avenue?

One look at the number of vintage office buildings being converted into condominiums and it begins to look that way.

If the landmark Wrigley Building, one of the most famous buildings on what is a world-famous stretch of street, eventually goes condo, it would join stalwarts such as the Palmolive Building and the old Britannica Center that will have replaced office credenzas with two bedrooms, a bathroom and a room with a view.

In all about 5,000 residential units now exist along Boul Mich from Oak Street to Roosevelt Road.

And that number is expected to increase.

"Michigan Avenue has evolved as an absolutely prime residential corridor," declares Gail Lissner, vice president of Appraisal Research Counselors in Chicago. "Even people who don't know Chicago have heard of Michigan Avenue. It has worldwide recognition. The location can't be beat."

Those drawn to the boulevard tend to be a different breed. "These people want to be where it's happening," Lissner said. "They don't want quiet, tree-lined streets."

Consider the Kurdins of Ohio. The couple visited the city 10 or 12 times last year and decided to buy a second home here rather than Florida.

"I grew up in New York, but the shopping is better in Chicago. The Magnificent Mile, Oak Street is so centralized. We have our favorite restaurants," said Jan Kurdin, 42, who with her husband, Howard, 45, bought a two-bedroom condo at Metropolitan Tower, 310 S. Michigan Ave. "We bought a fun place in Chicago to go where we can play."

James Kinney, president of Rubloff Residential Properties in Chicago, estimates that 20 percent to 30 percent of buyers on Michigan Avenue are like the Kurdins, part-time residents.

"There are a lot of empty-nesters selling their suburban houses and coming downtown," Kinney said.

Prices at new developments are pushing up to $1,000 a square foot, Kinney said. As for older condos, he said a two-bedroom apartment at Water Tower Place is $1 million-plus.

A driving force behind Michigan Avenue's rise as a corridor of condos are low interest rates and the willingness of people to plunk down what in another era might be considered huge amounts of money on residences.

Many of the older office buildings, especially those along South Michigan Avenue, also play into the conversions. No longer efficient as office space, they are better suited for conversion into residential units, said Bob Horner of Monroe Building Development Corp.

He and partner Ibrahim Shihadeh plan to convert the office building at 104 S. Michigan Ave. into 96 residential units, at prices from $200,000 to $4 million. Built in 1911, the structure is across the street from the Art Institute of Chicago.

"Millennium Park has accelerated the residential development of Michigan Avenue," Horner added.

Jerry James, principal in Edward R. James Partners LLC, says North Michigan Avenue "is a premier location, but no land is available."

As a result, James has proposed building a 64-story structure with 240 units in back of the Fourth Presbyterian Church, across the street from the John Hancock Center.

"We have filed with the Plan Commission and now are waiting," said James, who noted that the project has been opposed by Ald. Burton Natarus (42nd).

James said his building's smaller units will be around 1,100 square feet, aimed at people who want a place to stay for weekend visits, to larger permanent residences priced at $1 million or more.

Conversions gain cost edge

"As residential prices go higher, it's more economically feasible to convert the old office buildings on Michigan Avenue," said Keith Giles, principal in Frankel & Giles Real Estate, which converted the vintage office building at 888 S. Michigan Ave. into 36 condos.

"Millennium Park has become an international draw, so it's a major advantage being across from it," Giles added.

Louis D. D'Angelo, president of Metropolitan Properties of Chicago, is the developer of Metropolitan Tower, 310 S. Michigan Ave., a building known for its distinctive blue light. Built as the Straus Building in 1924, to many Chicagoans it is the Britannica Center because for years it was the headquarters for Encyclopaedia Britannica.

The 243-unit conversion began sales in 2004 of the one-bedroom to penthouse units with prices ranging from about $300,000 to $2 million. It is about 40 percent sold.

The buyers are largely empty-nesters who like to walk to work and live near the city's cultural opportunities, D'Angelo said. "We are having more out-of-state folks than we thought," he said. Buyers are about evenly split between city and suburban buyers.

The developer also plans to redevelop the former Karpen Building at 318 S. Michigan Ave., which is now vacant. The project will be called the Richelieu.

In 1997, D'Angelo redeveloped the McCormick Building, which includes the Residences of 330 S. Michigan.

"We sold 78 units in 4 1/2 months," he recalls. Those condos are on the top six floors of the building, which still has 14 floors of commercial space.

D'Angelo credits the city's investment in infrastructure--the museum campus, trees and flowers and the success of Millennium Park--as well as escalating congestion and high development costs north of the river for the spurt of condo projects along South Michigan Avenue.

In addition, the stretch designated as Historic Michigan Boulevard in 2002 has forced builders and developers to think about residential rather than commercial uses.

"The challenge for the developers and the city is to be creative with adaptive reuse as the office market moves west and the residential moves east," he said.

Wrigley a famed name

If the Wrigley Building eventually turns condo, it would easily become one of the most famous home addresses in Chicago, real estate executives said.

Rubloff's Kinney said construction of Trump Tower in back of the Wrigley Building will energize everything around it.

"The Wrigley Building could be an exciting place to live, but it might be expensive to maintain its terra cotta facade," Kinney said.

----------

jahandley@tribune.com

sstangenes@tribune.com

__________________
titanic1

chicagogeorge

June 19th, 2005, 07:55 PM

http://www.chicagotribune.com/news/local/chi-0506190253jun19,1,3685853.story?coll=chi-news-hed&ctrack=1&cset=true

Will Wrigley Building turn high-end condo?

Future of Chicago icon in question as growing corporate giant looks at options for office space

By Thomas A. Corfman
Tribune staff reporter
Published June 19, 2005

Chicago business icon Wm. Wrigley Jr. Co., whose renowned namesake building is an architectural gem, is studying its long-term real estate needs, including a move from its historic headquarters building, the Chicago Tribune has learned.

If the company decides to pull up stakes for another location in the city--unthinkable even a few years ago--one likely scenario is that the Wrigley Building at Michigan Avenue and the Chicago River would eventually be turned into luxury condominiums, real estate sources said.

Wrigley spokesman Christopher Perille said the chances were "remote" that the maker of chewing gum would move from the prominent structure. He also said the concept of a residential condominium conversion was "way out there."

The Chicago office of real estate firm CB Richard Ellis Inc. is conducting the study for Wrigley, which has made some acquisitions in recent months and is apparently outgrowing the terra cotta classic, where it has been based for more than 75 years.

Perille declined to confirm the study. "On an ongoing basis we work with different consultants to look at real estate options because our business is growing."

He added: "We have deep roots in Chicago and the Wrigley Building, and I don't think that's changing."

Awash in bright lights at night, the Wrigley Building, with its gleaming white facade, is one of the city's biggest tourist attractions.

But the company's space review reflects two large influences that are reshaping the downtown Chicago real estate market: the residential redevelopment of older office buildings, particularly those in premiere locations; and the demands of large businesses for the newest office space that they deem better suited to their business needs.

Several older office buildings--including other famous Michigan Avenue structures like the Palmolive Building and the Carbon & Carbide Building--outlived their usefulness as office buildings and have been converted for other uses.

The Palmolive Building, which once housed the headquarters of Playboy Enterprises, is now all condos. The Carbide & Carbon Building at 230 N. Michigan Ave. is now a Hard Rock Hotel.

In addition, the Wrigley Building is next door to the construction site of Donald Trump's hotel/condo tower, which has drawn significant numbers of condo buyers to the area and increased interest in more condo development nearby.

"It's beautiful, but it does not appear to be terribly viable as an office building," said Bruce Miller, managing director with Jones Lang LaSalle Inc., who handled the 2002 sale of a Michigan Avenue icon, the Palmolive Building, to a residential developer.

No end to condo conversions

"There seems to be no end in sight for these high-quality buildings up and down Michigan Avenue that are being converted," he added.

The company's potential move also underscores how William Wrigley Jr., who became chief executive in 1999 and chairman last year, is putting his stamp on the venerable company.

Once stodgy and content with just its main gum products, Wrigley has been trying to grow bigger and more diverse through acquisitions.

"Bill Wrigley is re-examining the old family assumptions of every aspect of the business," said Steven Fifield, chief executive of the Chicago-based development firm that bears his name.

The Wrigley Building is actually two towers separated by a courtyard, with addresses of 400 and 410 N. Michigan Ave. The company now occupies nearly 227,000 square feet, almost half of the 453,400-square foot development. Five years ago, the company had 159,000 square feet.

The rest of the space is leased to small companies, such as investment firms and advertising agencies.

While CB Richard Ellis assesses its long-range needs, Wrigley is also looking for short-term additional office space near the headquarters.

That search for about 60,000 square feet of space is being handled by another real estate firm, Transwestern Commercial Services, Perille confirmed.

Wrigley would lease that space for between three and five years. For specific projects, Wrigley has in recent years leased short-term office space outside of the Wrigley Building, he noted.

But the current short-term space is partly needed to accommodate Wrigley's expected acquisition of the LifeSavers and Altoids candy brands from Kraft Foods Inc. for $1.48 billion, he said.

The deal, a sign of Wrigley's break from the past, would allow the company to expand its product line to compete with other candy companies like Hershey Foods Corp., which Wrigley made a surprising, but unsuccessful, attempt to buy in 2002.

Many experts expect Wrigley to make more acquisitions, and a key part of the CB Richard Ellis study is to determine the amount of Wrigley's future space needs.

Todd Lippman, an executive vice president with CB Richard Ellis, who is handling the Wrigley study, could not be reached for comment.

Study's deadline unclear

A time frame for completion of the study could not be determined. Meanwhile, a short-term lease could give Wrigley time to expand in its current location as tenants move out, experts say.

And the company could still opt to divide its offices between its historic home and another building, although most large corporations would consider consolidation to be a key benefit.

But many large downtown firms are relocating into new office towers, motivated by advantages such as larger, more efficient floors, improved technological capacity, and lower operating costs.

A new Wrigley Building would give the company a more modern image, developer Fifield said.

"Look at the innovation center," he said, referring to the company's new high-tech, 208,000 square foot research campus on Goose Island.

Employees have already started to move into the $84.3 million facility, a key part of a focus on product development begun in 2001.

If the Wrigley Building went up for sale, most real estate experts say residential developers would likely outbid office building investors, similar to the 2002 sale of the Palmolive Building, when Draper & Kramer acquired the building. Yet, despite the Wrigley Building's prestige, a residential conversion would be a challenge, requiring time-consuming city approvals, an arrangement for parking, and hefty construction costs.

Although not a city landmark, real estate developers say neither the company nor city officials would allow any changes to its classic aspects, particularly the facade.

Moreover, another historic feature, the building's nighttime illumination, would also complicate any conversion. The lighting poses little issue for office workers who leave at dusk, but would be a problem for condo residents, said developer Michael Lerner, president of MCZ Development Corp.

"The deal will certainly sell, because the building is so fantastic, but there are a lot of things to overcome," he said.

geoff_diamond

June 19th, 2005, 07:58 PM

I happened to catch a glance on the TV of the Wrigley's possible conversion when I was at dinner last night. I'm still not sure how I feel about the whole thing, but, I guess whatever's good for the area is good for me!

chicagogeorge

June 20th, 2005, 02:34 AM

^
Word.:)

ChicagoLover

June 20th, 2005, 02:47 AM

The possible conversion of the Wrigley makes me shudder, although I'm very pleased to learn that the expansion of Wrigley Co. is benefiting Chicago in terms of office absorption.

This news about the way South Michigan is developing is music to my ears. The quality of design of the condos being built south of Roosevelt on Michigan seems generally pretty high. I look forward to the day when one can take a long walk down Michigan all the way from IIT to Oak Street, basking in the continuous urbanity of it all.

Chi_Coruscant

June 20th, 2005, 01:22 PM

Developer draws plans for La Salle office skyscraper
June 20, 2005

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters Advertisement
(Chicago Sun-Times)

Hoping to prove there's still life in the La Salle Street leasing market, a suburban developer wants to add at least 1.2 million square feet of offices to the city's financial district.

Itasca-based Hamilton Partners has asked for a zoning change to build an office building of about 50 stories at 29 S. La Salle.

The plan calls for the building to be attached to its neighbor next door, 39 S. La Salle, which would be preserved as a boutique hotel.

The 39 S. La Salle building dates from 1894, and is a late work by the firm owned by architect William Le Baron Jenney, acclaimed as an innovator in skyscraper design because he was among the first to use steel framing.

The building has no designation as a landmark, but the developer would agree to landmark designation as part of the zoning request.

Robert Klauseger, partner at the Hamilton firm, said the building would fit well with a soaring neighbor, and would retain a distinct identity.

Plans by the firm Lucien Lagrange Architects call for the new construction to be built partially into the old building, and rise above it to a height of 870 feet.

The height is closer to many buildings in the 70-story range and would rank the structure eighth in the list of Chicago's giants. Klauseger said he's planning fewer stories to accommodate raised floors for today's standards of high-technology wiring.

The project would be the first building along La Salle in the Loop since those conceived during the late-1980s construction boom downtown.

Although it still symbolizes Chicago as a financial center, La Salle has had to work harder to draw office tenants. Development along Wacker Drive has realigned downtown westward, promising space efficiencies to relocating firms and proximity to train stations that serve the north and west suburbs.

Klauseger said La Salle retains its advantage of a central location.

"It's closer to the city's two other [commuter] train stations," he said. "People tend to forget that.''

He said that if the City Council approves the zoning, he'll market the building to large users. In recent years, law firms and accounting firms with a wanderlust have signed leases to kick off new construction.

Longtime developer Michael Reschke said Hamilton Partners' site figures to have appeal, but it will have to compete for a limited number of anchor tenants.

"La Salle is still the second best address to have after Wacker,'' Reschke said.

geoff_diamond

June 22nd, 2005, 09:27 AM

This is crazy! I was sure I'd never see another tower put in the heart of the Loop during my lifetime!

BVictor1

June 22nd, 2005, 01:16 PM

Two-tower plan gets new push in West Loop

June 22, 2005

BY DAVID ROEDER SUN-TIMES COLUMNIST

Developer Michael Reschke is dusting off plans for two residential towers on the west bank of the Chicago River between Lake and Randolph. He owns the right to build over the commuter rail tracks that run through the property, and he's tried sporadically over the years to build on the site or sell his interest.

Reschke, chairman of Prime Group Inc., said he will start marketing the condos in 90 to 120 days. His plans are in line with what the city approved a few years ago, towers of 53 and 42 stories. He said he's angling to have a hotel occupy part of the south tower, which would be across Randolph from the Boeing Co. headquarters.

In the past, Reschke has had grand plans upset by over-reliance on debt. But for this effort, he'll have some cash. He has a contract to sell his 300 N. La Salle development site to Hines Interests LP, which has tentatively signed Kirkland & Ellis LLP to anchor a new office building there.

Always fond of Italian design, Reschke said he'll call the two buildings Medici Towers after the dynasty that ruled Florence for about 300 years until the 18th century. It produced everything from warlords to popes, but Reschke was thinking of its reputation as patrons of the arts.

STATE STREET SALE: The sale of the 201 N. State building closed Monday for $6.5 million. The buyer, Environmental Community Development Inc. of Lincolnshire, plans to replace the five-story building with a hotel and a new Fritzel's restaurant, an attempt to recreate a Chicago icon formerly at that location. The buyer was represented by George and Melvin Kaplan of Melvin M. Kaplan Realty Inc. The seller was the Joffrey Ballet of Chicago, which plans to build a studio a block away in a new residential tower planned for the northeast corner of State and Wabash.

PARKING PACT: Chicago's D2 Realty Services Inc., one of the most active investors in the South Loop, has acquired a two-level parking garage at 412 S. Dearborn for $4.4 million, according to property records. D2 principal David Crawford acknowledged the property's development potential, but said it'll do just fine as a parking site for the time being and can be enlarged. He noted that the renovated Fisher Building across the street, which now has high-end apartments, and a nearby hotel both need parking.

Meanwhile, Crawford said D2 is buying out a controversial partner's interest in an office condo conversion of the 250 S. Wacker building. The partner is Carnegie Realty Group, discussed in last week's column for the felony records of its two partners. Crawford said he erred in getting involved with Carnegie and doesn't want his own firm's reputation to be harmed.

Chi_Coruscant

June 22nd, 2005, 05:10 PM

The seller was the Joffrey Ballet of Chicago, which plans to build a studio a block away in a new residential tower planned for the northeast corner of State and Wabash.????

I am sure it is meant as the northeast corner of State and Randolph. That is MoMo.

Frumie

June 22nd, 2005, 07:19 PM

Trusting this is the proper thread:

Office Condos Planned for The Garland Building

By Kevin Knapp

Monday, June 20, 2005 - The Garland Building, located at 111 N. Wabash Ave. in the Jeweler’s Row District, is planning a conversion to office condominiums. FIC Development Group, headed by President Timothy Farrell, will acquire the 22-story, 259,000-square-foot property from a group of private Chicago investors. The new owners will lead the condominium conversion in a joint venture with the building’s current management and leasing team, L.J. Sheridan & Co., which will spearhead sales beginning in the spring of 2006.
P.S. If that dancing figure is annoying, three votes against from three different forumers and he's outta here. :)

geoff_diamond

June 22nd, 2005, 08:39 PM

Awesome news! I've been dying for the western view down the river to be properly terminated for years! Riverbend was a huge step in the right direction, and this will only help further.

The sale of 201 N. State is also great news, that building has long been an eyesore with it's VERY nasty DD, Taco Bell and KFC stores. Yet another "good riddance" from me :)

mypetrobot

June 23rd, 2005, 12:29 AM

Condos eyed for courthouse

Tribune staff, wire reports
Published June 22, 2005

Amid strong demand by developers for Near South Side sites for condominium projects, Cook County is taking the first step toward selling an antiquated courthouse building at 1340 S. Michigan Ave. Board President John Stroger said Tuesday that he plans to obtain two appraisals for the seven-story structure before asking the Cook County Board to put the property up for sale. The courthouse was built around 1900. A schedule for obtaining the appraisals has not been set. The facility is being replaced by a new Domestic Violence Court, 612 S. Clinton St., expected to open this fall.

The Urban Politician

June 23rd, 2005, 07:15 AM

From Chicago Journal: Note--no parking podium!

6/22/2005 10:00:00 PM Email this article • Print this article
Above and beyond
25-story tower planned for 1454 S. Michigan

By VIRGIL DICKSON, Contributing Writer

Photo courtesy of Sedgwick Properties 1454 S. Michigan

South Loop residents may be getting some new neighbors. The Chicago Plan Commission has approved Sedgwick Properties’ plans to begin construction on a new residential high-rise property at 1454 South Michigan Ave.

The proposed building is 295 feet high with 215 units, while zoning regulations for the area only allow for buildings 155 feet high and no more than 200 units.

On June 16, the Plan Commission was called in to vote on the project because the height of the building and the number of living units exceeded the zoning threshold. The building plan was passed.

According to a report complied by the city’s Planning Department, the high-rise will be will be constructed on a property of about 30,000 square feet. The building will have 25 stories and 8,000 square feet of ground-floor commercial space, as well as a 240-space parking garage. The western portion of the site will have a five-story parking structure, while the building itself will occupy the eastern half of the site.

Calls to Sedgwick Properties were not returned.

It was actually the parking structure, according to Jeff Key, president of the Greater South Loop Association, that caused some tenants in the area to frown.

“We [were critical] of the back side of the parking structure because it would be visible to Wabash, and the design wasn’t friendly on the eyes,” he said.

The Planning Department’s Madeleine Doering said to help improve the aesthetics of the garage, the developers are going use the same pigmented concrete that they did in the residential tower. This, she said, will create a false façade, that will ultimately make the garage and building appear to be one structure.

“We wanted them to hide the parking garage,” she said. “They are also putting up screening and covering it with vines, so people couldn’t see the open ramp,” she said.

As the new building comes in, the current structures located at the site—two vacant three-story commercial buildings—will be torn down. The neighboring Buick Building, which was part of the Motor Row Historic District, will be preserved and adapted for re-use.

The residential floors will be situated atop a two-story base containing a ground-floor residential lobby and commercial business space. The second story of the base will consist of 11,000 square feet of residential space, divided into at least five studio apartments. Floors 3 through 25 will be purely residential, including one-, two- and three-bedroom units ranging from 630 square feet to 2,200 square feet. All residential units in the tower will have private, recessed balconies. The roof, in accordance with the Chicago Landscape Ordinance, will be 25 percent green and include a dog run for the tenants.

According to the proposal, access to the parking garage and loading will be from the public alley, which runs parallel to South Michigan Avenue, connecting 14th Street and 16th Street.

Key brought up that there is a possibility that the Marquee project is unique because of the low-priced units. According to an article in the May 25 Sun Times, pricing for 1-bedroom condos begins in the high-$100,000s. Two-bedroom units start in the mid-$200,000s, and units with 3 bedrooms are priced from the mid-$300,000s. Penthouses begin in the $600,000s.

“Every development needs something to stand out among all that,” Key said. “So you can either have a beautiful design, or unique amenities, or attracting people with a lower price.”

However, Key added that some professionals have wondered whether the prices were too low to put up a quality building. As in similar situations, funding for most of the building’s construction comes directly from the sales of the units.

“In my personal opinion, an aggressively low price shouldn’t be the goal above a quality building, because you want the building to stand a long time,” he said. “I’m just wondering if the developer is just taking a tiny margin, or are cuts being made somewhere else inside the building”?

geoff_diamond

June 25th, 2005, 10:48 PM

So, I was heading over Gov'nors Pub with some friends for lunch today when, much to our dismay, we noticed upon arriving that it was closed. The Dunkin' Donuts in the same building was also closed. They all had stickers on the window saying that they were shut down by the Chicago Building Commission. Now, if you'll remember, the lease was not allowed to be renewed on the Taco Bell/KFC sandwiched between the two aforementioned establishments.

Could this be the beginning of the end for this structure? I had my doubts that the condos we've talked about on this board would actually happen - but, it sure looks like things might be moving in that direction?

Anyone care to refresh my memory on the name of the project? (for those who aren't following - this is the building on the northeast corner of State and Lake streets in the Loop).

wickedestcity

June 30th, 2005, 06:46 AM

PRU TRUE: The Prudential Plaza office complex in the East Loop consists of two parts, the dashing, spired building at 180 N. Stetson that came in 1990 and the notably dowdy, tired limestone building of 1955 at 130 E. Randolph. Guess which is doing better in the office leasing derby?

It's the old building, said Chuck Ferndrich, senior vice president for the landlord, Shorenstein Co. LLC. He said it's 98 percent leased to top-credit tenants. His leasing priority is the newer building, which suffered the defection of lead tenant Deloitte & Touche and is now about 70 percent occupied.

Deloitte had 320,000 square feet in the building before decamping for the West Loop.

Ferndrich said about 90,000 square feet of that space has been taken, and the building draws significant leasing activity. So while the world around him talks about converting office space to residential condos, Ferndrich said he's not buying into that frenzy. He said he's confident the office market in the East Loop will improve as a byproduct of downtown's residential growth.

And he observed that the old Prudential Building's view of Millennium Park is unmatched.

JUST ASKING: You admire the snazzy high-rises of Wacker Drive, and then your eye wanders to the humble five-story building at 110 N. Wacker, the old home of Morton Salt and occupied by shopping-mall owner General Growth Properties Trust. It's a prime candidate for a teardown, and since the owners are real estate people, they must be fielding offers, right?

Nope, says John Bucksbaum, General Growth's CEO. "We're staying here. We have no plans to sell,'' he said. "This is a perfect building for us.''

His place looks a lot like the now demolished Sun-Times Building. Both structures went up in 1957.

THAT REMINDS ME: I'm passing along a comment from Lawrence Adelson, chief executive of Heartland Partners LP, which is selling off the real estate of the old Milwaukee Road railroad. Looking back over the downtown development cycles, he said, "It always seemed like there were three deals that never got done when a cycle ended: the Sun-Times building, Block 37 and Union Station. I guess we have to revise that list now.''

Yes, Donald Trump is backing up his boasts with construction cranes at the old Sun-Times site and several tenants have been announced for Block 37. Only the Union Station redevelopment looks as far off as ever. But I would add the old Chicago Post Office to the list of star-crossed projects. Its owner is the federal government, while Union Station belongs to Amtrak, essentially a federal agency. The feds aren't very good at seat-of-the-pants property decisions. Maybe it's time to get the Chicago congressional contingent on the case to move these sites along.

ON THE MARKET: Daniel Hyman, president of Millennium Properties Inc., wants offers by Aug. 18 on a former Marshall Field's warehouse at 601 W. Polk. The 107,000-square-foot building has upgrades to serve as a technology hub. This is no condo conversion deal; about 28 percent of the property is leased to top-credit users.

DOING THE DEALS: Auctioneer Rick Levin secured an offer of $2.4 million for 14 condos plus 25 parking spaces in a project at 949 N. Willard, near the Chicago-Elston area. The buyer is an affiliate of Current Development Corp. Levin handled the deal for First Bank of St. Louis. ... Trammell Crow Co. represented Oxford Bank in its lease of 21,000 square feet for a headquarters at 1111 W. 22nd St., Oak Brook. Oxford will move from Addison to an Equity Office Properties Trust building late this year.

Chi_Coruscant

July 2nd, 2005, 03:02 PM

IBM tower may be renamed
Mesirow Financial seeks deal on rights

By Thomas A. Corfman
Tribune staff reporter
Published July 2, 2005

Mesirow Financial would gain the naming rights to One IBM Plaza as part of a move to the riverfront tower, under a complicated deal being negotiated with landlord Prime Group Realty Trust.

The icon of modernist architecture stands to lose its namesake tenant later this year. A Mesirow-Prime Group deal not only would fill that space but would be a critical factor in keeping the building's largest tenant, law firm Jenner & Block LLP, which is also considering a move, sources familiar with the talks said.

"We're evaluating lots of alternatives, but obviously that one is very interesting to us," said James Tyree, Mesirow's chairman and chief executive.

Donald Resnick, the Jenner partner handling the firm's review of its real estate needs, said, "Mesirow would be a great addition to any building."

Tyree and Resnick declined to comment further on the talks.

Earlier this year Mesirow began considering a move from its headquarters at 350 N. Clark St., possibly to a new building it would develop. But instead, under the proposed deal, Mesirow's real estate unit would earn fees redeveloping the 1.4 million-square-foot building at 330 N. Wabash Ave., which Prime Group would continue to own, sources said.

IBM Corp. has about 280,000 square feet, but is dramatically cutting back its space as part of a move to Hyatt Center, 71 S. Wacker Drive. Although a name change would take time to set in, it could be worth the wait for the growing financial-services firm.

"What a great branding opportunity, and that's what that business is about now," said Alain LeCoque, managing principal with Newmark & Co. Real Estate Inc., who isn't involved in the negotiations.

The talks could still fall apart, particularly over the critical issue of renovation costs for the nearly 35-year-old structure, sources said. Among those expenses would be the removal of the asbestos insulation that coats the iron beams of the building.

Rising renovation costs would push up the rent, making other options more attractive. Yet unlike some other structures of its era, the 52-story tower already is equipped with sprinklers, which can cost $8 a square foot to install, according to the Building Owners and Managers Association of Chicago. But even the most lavish renovation would be cheaper than developing a new building.

If the deal goes through, it would be the first redevelopment of a large office building in several years. In the 1990s, classic structures such as 175 W. Jackson Blvd. and 120 S. LaSalle St. were successfully rehabbed. Landlords of older, existing buildings are under growing pressure to reinvest in their properties to keep them competitive with their newer rivals.

Large floors

Designed by Mies van der Rohe, IBM Plaza offers large floors of about 31,000 square feet that are unobstructed by columns--a key feature offered by the newest skyscrapers.

As a part of a renewal, Jenner would likely reconfigure its offices, taking advantage of recent trends among law firms to have more efficient space plans. The firm has about 340,000 square feet of space under a lease that expires in 2010, according to Prime Group.

Jenner, which is advised by real estate firm Colliers Bennett & Kahnweiler Inc., has been reviewing several options, including moving to a new office tower.

A Mesirow deal would ease concerns that Jenner might have about the future of IBM Plaza, which would be badly hurt by a large, prolonged vacancy. And both Jenner and Mesirow may be weighing the business synergies to be achieved by sharing a location. Already, Prime Group is a Jenner client, with the law firm representing the real estate investment trust on several large matters.

But a Mesirow deal at a renamed IBM Plaza would be a practical recognition that the firm's chances of developing an office building in River North--Tyree's preferred location--have quickly diminished. Last month law firm Kirkland & Ellis LLP disclosed that it had a letter of intent to anchor a huge tower at 300 N. LaSalle St., to be developed by Hines Interests LP. Most office brokers believe the market would not sustain two new towers north of the Chicago River.

The negotiations about redeveloping IBM Plaza grew out of talks over that site between Jeffery Patterson, Prime Group's president and CEO, and Richard Stein, senior managing director of Mesirow Stein Real Estate, sources said. A deal with either Mesirow or Jenner would not have been possible even a few months ago, until Prime Group stabilized its management and resolved uncertainty over its ownership.

Stock sale approved

Last Tuesday Prime Group's common shareholders approved a proposal to sell their stock to New Jersey-based Lightstone Group LLC. The deal came after several years of financial turbulence while the REIT explored strategic alternatives under three different chairmen.

Patterson, who has been CEO less than a year, declined to comment.

As a result of the deal, he was entitled to a nearly $1.5 million change-of-control payment. And last month Lightstone extended his employment contract 30 months, increasing his annual salary 17 percent, to $412,000, not including bonuses.

But the negotiations with Mesirow and Jenner will prove to be a key test for the new Prime Group, essentially doubling the stakes for the REIT: Make both deals, or lose both.

Said LeCoque: "I think IBM Plaza would really go down the tubes if Jenner left."

geoff_diamond

July 2nd, 2005, 07:56 PM

Ugh. It will always be IBM as far as I'm concerned.

chiphile

July 3rd, 2005, 12:00 AM

^i'm sure you call the other one standard oil

uberalles

July 3rd, 2005, 04:07 AM

When can we tear down the old Prudential Building?
It's been an eyesore since it was built. I can't bear to look at it when it shows up on old postcards that chose to feature it. You almost feel like cutting the building out of the picture. Is it just me, or is it time for this one to go. The 50's had nothing to offer this city, not even those mundane 860-880 LSD buildings.

geoff_diamond

July 3rd, 2005, 04:35 AM

OMG!!! You really don't wanna start slinging mud at 860-880. From my experience, this is a pretty heavily modern-oriented forum (myself included). At any rate... I think 1 Pru is certainly ugly, but, having served, just a few short decades ago, as Chicago's tallest building, I think it's an important part of the City's history.

And chip - I actually call it Aon :) I tend to go with whatever name things had when I moved here. It's going to be hard for me to start calling R.R. Donnelley anything but.

24gotham

July 3rd, 2005, 05:33 AM

The 50's had nothing to offer this city, not even those mundane 860-880 LSD buildings.

That's a fairly blanket statement about 50's architecture. There were some very important structures that went up in the 50's. Inland Steel anybody?
As for 860-880, Keep in mind that when those two towers were completed, there had never been any residential tower like it before. They were groundbreaking.
While I will be the first to admit that the offspring of the movement began by Mies has been less than stellar at times, and occasionally downright terrrible, the 50's was a time of completely new territory architecturally.

BVictor1

July 3rd, 2005, 06:02 AM

Suburbanite

July 3rd, 2005, 06:12 AM

OMG!!! You really don't wanna start slinging mud at 860-880. From my experience, this is a pretty heavily modern-oriented forum (myself included).

Just wait 'til Steely Dan sees this. :runaway:

wickedestcity

July 3rd, 2005, 06:24 AM

Lopping off proposed for Post Office
Structure's center would lose 6 stories

By Thomas A. Corfman
Tribune staff reporter
Published July 1, 2005

After working for nearly seven years on a deal to redevelop the Old Main Post Office, real estate investment firm Walton Street Capital LLC is proposing to carve out the middle section of the historic structure as the only economical way to preserve it.

The portion of the massive building that spans the Eisenhower Expressway would be reduced to four stories from 10, transforming the fortress-like block into an elongated "U" shape.

The reduction would create two, 230-foot tall buildings that overlook the middle section's rooftop garden terrace.

Built between 1921 and 1934, the Art Deco building is on the National Register of Historic Places, and federal regulatory approval of the proposed changes is nearly complete, said Rafael Dawson, a vice president with Walton Street.

The Chicago real estate investment firm signed a contract to acquire the vacant, 2.4 million-square-foot structure from the U.S. Postal Service in 1998. Since then, the contract has been repeatedly extended while Walton Street pitched various redevelopment proposals to prospective retailers, office tenants and hoteliers.

Now, the company contends radical surgery is the only way to save the prominent property.

"After literally working out many, many alternatives, we've come to the conclusion that the existing configuration is simply unworkable from a physical and economic standpoint," Dawson said.

Walton Street submitted its plans to the City of Chicago as part of a request for a tax increment financing grant that sources said would be in the range of $50 million to $60 million.

A Planning Department spokeswoman said, "We are working with the developer of the post office, and we are all on the same page, but we are working out the details right now."

She declined comment on any TIF subsidy, and said she was unaware of the plan to alter the structure. But the proposal is sure to draw the scrutiny of historic preservationists.

Chicago architect John Vinci, known for his work on landmark buildings, said he would prefer that the post office stay untouched, but recognized that practical economics may require significant changes.

"Nobody knows what to do with the whole big mass," he said.

The Old Main Post Office is actually three buildings, designed by Graham Anderson Probst & White, the same firm that designed such massive local landmarks as the Merchandise Mart and the Civic Opera House.

Walton Street's current plans include completely renovating the 11-story north tower into a 500,000-square-foot office building, Dawson said. The south tower, which is the same height but 14 stories, would be converted into residences. The thinned-out middle would have parking and a 250-room hotel along the east side, facing the Chicago River.

Dawson declined to comment on the TIF negotiations or current project cost estimates. A 2000 report estimated that interior demolition, roof repairs and facade restoration would cost about $71 million.

Walton Street's principals include financier Neil Bluhm, who is also president of JMB Realty Corp., which was a key member of the development venture for Block 37 that the Daley administration replaced after expressing sharp dissatisfaction with JMB's plans.

But that hasn't soured the current talks, sources say.

"Everybody is moving together," Dawson added.

Chi_Coruscant

July 4th, 2005, 03:18 AM

Walton Street's principals include financier Neil Bluhm, who is also president of JMB Realty Corp., which was a key member of the development venture for Block 37 that the Daley administration replaced after expressing sharp dissatisfaction

If he is unsuccessful at Block 37, then he will be unsuccessful at Post Office redevelopment. All he will do is pocket TIF money and then later declare the pullout from a massive project in few years.

Chi_Coruscant

July 5th, 2005, 06:44 AM

- edit

geoff_diamond

July 5th, 2005, 07:38 AM

30 S. Monroe

That's a new one on me. I think they mean 30 W. Monroe.

Chicago Shawn

July 5th, 2005, 10:38 AM

From "At Deadline" section in Chicago Crain's:

Daley plans meeting for Gold Coast tower
Mayor Richard M. Daley scheduled a mid-July meeting with the Rev. John Buchanan, pastor of Fourth Presbyterian Church, amid controversy over the church's proposal to build a 64-story residential tower on a section of its historic Michigan Avenue property. The local alderman, Burton Natarus (42nd), recently announced opposition to a zoning change needed for the project. Neither Mr. Daley nor his Department of Planning has taken a position. [Greg Hinz]

Mittal Steel narrows search for HQ site
Mittal Steel Co. narrowed its search for a U.S. headquarters site in Chicago to four downtown buildings, people close to the search say. The Netherlands-based steel-making conglomerate is looking for 60,000 square feet to accommodate about 200 employees. Mittal is eyeing space at 30 S. Monroe, the old headquarters of Inland Steel. The other buildings in the running are 1 S. Dearborn, 180 N. Stetson, and 200 S. Michigan. [Bob Tita]

Very good news on both counts. I belive Daley will come out supporting this tower, which will tip the scale in favor for this project as it heads to the Plan Commission, Natarus may openly oppose it to appease the NIMBYS of his ward, but I believe he will be over rulled by the other members of the Plan Commision. Daley standing behind the project will go a long way to making that happan.

Also great news, is that Mittal Steel will will open thier new HQ within downtown. My guess is they will choose 180 N. Stetson due to its location near the Randolph Street Station, where the South Shore Line would link the HQ to the steel mills in NW Indiana.

BVictor1

July 5th, 2005, 05:56 PM

Cook County's Originality
Courthouse Project Breaks New Ground

by Paula Widholm

The renovation of a 19th Century warehouse into the Cook County Domestic Violence Courthouse pioneers the county's first Leadership in Energy & Environmental Design-certified "green" building and the area's first European rain-screen cladding system.

A Cook County ordinance, passed in 2002, requires all new county buildings to be LEED certified under the U.S. Green Building Council in Washington, D.C. However, the $64.2 million courthouse project at 555 W. Harrison St. in Chicago is going beyond the lowest LEED designation, "certified," and is shooting for a Silver designation.

After the design phase by Chicago-based lead architect Campbell Tiu Campbell, the joint venture of Wood Dale-based George Sollitt Construction Co. and Chicago-based Oakley Construction began construction in February 2004. The project is slated to be complete by the end of July and will open this fall.

The existing Domestic Violence Courthouse at 13th Street and Michigan Avenue is "very overcrowded, and there isn't adequate separation of victims from the accused," said Elizabeth Melas, deputy director of capital planning for Cook County. The existing facility will be closed once the new facility about a mile to the northwest is complete.

The new facility's 10 courtrooms replace six at the Michigan Avenue facility and one offsite. The new courthouse's design keeps victims, judges and the public separated from prisoners, who will enter the 192,636-sq.-ft. building via the sally port at the basement level. Also, an onsite day-care center provides a safe, fun environment for the children of victims during court proceedings.

'Green' Items

A major "green" component is a 110-kW photovoltaic system that will supply 5 percent of the building's power. Manufactured by Bedford, Mass.-based Spire Corp., the solar panels cover about 40 percent of the building's roof.

The PV system will be one of the largest in the Midwest and would provide the equivalent of electrical energy used annually by 20-25 Chicago homes.

Other environmentally friendly elements include high-efficiency boilers, recycling of at least 50 percent of the construction waste, a system of capturing parking-lot rainwater into cisterns for watering the landscaping, use of low-odor-emitting materials and paints and buying 20 percent of construction materials from local and regional suppliers.

Another effort was made to make environmental choices easier for employees.

"We'll have a shower and changing room in the basement for people who want to ride their bikes to work," Melas said. "There'll be a place to lock up the bikes outside."

While some of the "green" items carry higher upfront costs, Melas said it should result in building lifecycle savings.

A Grand Entry

Through a redesign, the front of the building is repositioned to what was formerly the building's rear.

The new main entrance on the north elevation was incorporated to take advantage of the site. A different warehouse that was once north of the project site was previously demolished to create empty space that will become a parking lot.

Therefore, an architectural challenge was faced in creating a new facade on the beige brick that would complement the other three sides' rust-colored brick. Instead of simply cladding it, Chicago-based Booth Hansen, architect for the north elevation, designed a rust-colored wall 16 ft. in front of the facility that is secured to the front of the building with steel trusses to form an atrium.

At roof-level, the atrium wall curves to south-facing glass panels that "scoops sunlight from the south and throws it into the atrium," said George Halik, principal of Booth Hansen. "A new front for the main entrance gives it a new, fresh facade."

Melas called the atrium a grand-entry point. "It's open and welcoming and allows space for circulation."

Booth Hansen designer Scott Cyphers added that the large windows that comprise 40 percent of the atrium wall draw in natural light and won't obscure the original building, which will keep the beige brick.

"You can see through to the existing building," he said. "It plays off the new versus the old. We're not covering up the history of the building. It adds to the richness of the space."

The two metal-paneled end conditions and roof also highlight the atrium wall.

The interior of the atrium wall and the public spaces are lined with a blond wood veneer hardened by resin to resist scratches and wear. Black granite accents and terrazzo floors will also be in the common areas.

Terracotta Rain-Screen System

In addition to its pleasing aesthetics, the exterior atrium wall uses a rain-screen system, a method of sustainable wall construction that's making its debut in the Chicago area on this project.

With no examples of this product locally, Cook County representatives traveled to St. Louis to see how it looked on a building there.

"We wanted a material on the new atrium that worked with the brick on the other three sides," Melas said. "We wanted a complimentary material, but not brick."

To install the system, clay tiles are attached to an aluminum framing system.

The open joints allow air to circulate behind the clay tile, equalizing pressure so the building doesn't suck in air and water. It also functions as a ventilation system for the interior cavity.

Past this air pocket are 2 in. of rigid Styrofoam insulation. Behind that, a waterproof membrane is applied to the structural block wall. The pressure equalization eliminates inherent maintenance problems of traditional enclosures that require tuck-pointing and resealing of caulk over time, Halik said.

While the system is used extensively in Germany, it's only present in a handful of locations nationally. However, it's gaining popularity.

"There's tremendous interest in this system with architects and owners," said Kevin Lynch, vice president of Tinley Park-based Architectural Glass Works, the subcontractor installing it on the project.

Since construction began on the Domestic Violence Courthouse, Lynch said he's started working with four architects in budgeting and design details for incorporating this system on other projects. "Architects are looking at more unique enclosure elements on a building," he added.

The cost of a rain-screen system ranges from $40 to $70 per sq. ft. depending on the quantity, color and size, Lynch said.

Demolition and Excavation

One of the biggest construction issues was demolition of large parts of the clay tile arch floors to make way for seven new elevators. The old limestone foundation under about half of the north elevation was also excavated for the below-grade sally port.

"We were temporarily supporting the building with shoring, concrete, structural steel and needle beams," said Jamie Rahn, vice president of George Sollitt Construction. "The most challenging part was the structural aspect, trying to take it apart delicately and gingerly and put it back together in a sound way."

In addition, the project has complex mechanical and electrical systems that were coordinated with the PV system as well as elaborate security, lighting and audiovisual systems.

"They had to be squeezed into an existing basement with low hanging ceilings," Rahn said. "A rooftop penthouse was also added to house air-handling equipment for the PV system."

The Urban Politician

July 5th, 2005, 10:35 PM

From "At Deadline" section in Chicago Crain's:

Daley plans meeting for Gold Coast tower
Mayor Richard M. Daley scheduled a mid-July meeting with the Rev. John Buchanan, pastor of Fourth Presbyterian Church, amid controversy over the church's proposal to build a 64-story residential tower on a section of its historic Michigan Avenue property. The local alderman, Burton Natarus (42nd), recently announced opposition to a zoning change needed for the project. Neither Mr. Daley nor his Department of Planning has taken a position. [Greg Hinz]

Mittal Steel narrows search for HQ site
Mittal Steel Co. narrowed its search for a U.S. headquarters site in Chicago to four downtown buildings, people close to the search say. The Netherlands-based steel-making conglomerate is looking for 60,000 square feet to accommodate about 200 employees. Mittal is eyeing space at 30 S. Monroe, the old headquarters of Inland Steel. The other buildings in the running are 1 S. Dearborn, 180 N. Stetson, and 200 S. Michigan. [Bob Tita]

^I wouldn't necessarily take either of these as great news.

Regarding Daley and 4th Presbyterian, there's no reason to believe he'll go against SOAR--I mean, the guy really needs his strongest constituents now, esp with his Mayorship in question.

Regarding Mittal Steel, correct me if I'm wrong, but the article says they narrowed their search for a U.S. Headquarters site "in Chicago". They didn't really say that they've ruled out NW Indiana, yet. This, at least, is my read of that little blip...

Frumie

July 5th, 2005, 10:49 PM

Village Green, Everhardt buy 188 W. Randolph

By Julie Jargon
An historic gothic revival building that was named a public hazard four years ago has been purchased by Village Green Companies and Everhardt & Nesis Co.
When chunks of terra cotta began falling off the façade of the 45-story former office building at 188 West Randolph Street in 2001, the city tried to get the building’s owners to fix the problem, to no avail. The new owners, who bought the building out of bankruptcy, will convert the 76-year-old structure into 300 high-end apartments. Plans for the 300,000-square-foot building also include 9,800-square feet of restaurant and retail space.

Charles Everhardt, a Chicago real estate broker who’s new to residential real estate development, partnered with Detroit-based developer Village Green Companies on the $10 million deal. Mr. Everhardt previously told Crain’s that he expects to spend $60 million rehabbing the building.
Related story: 188 W. Randolph going residential

“There will be rather extensive work done to the exterior of the building,” Village Green chairman Jonathan Holtzman says, adding that the company will work to preserve the historic nature of the façade. It will be considered a “green” building, in which energy-efficient systems and recycled building materials will be used.

Construction will begin in 20 months, after the developers have worked out details with the city.

BVictor1

July 6th, 2005, 01:36 AM

For Immediate Release
Contact: Constance Buscemi
Phone: (312) 744-2976
E-mail: Constance.Buscemi@cityofchicago.org
Wednesday, June 8, 2005
Former police station site looking up

$5.7 million land sale to pave way for new condo tower

--------------------------------------------------------------------------------
An ordinance was introduced today into the Chicago City Council by Mayor Richard M. Daley that would grant authority to the Department of Planning and Development to sell the vacant lot at 110 W. Superior St. for $5.7 million for a proposed redevelopment project.
The developer, 110 W. Superior LLC., was selected through an advertised bidding process. Their bid offer was $1 million more than the appraised value of the property.

"This plan gives new life to a now vacant, underutilize and unattractive parcel of land that will ultimately benefit the Near North Side community and its residents as well as the City and the taxpayers," said Mayor Daley.

Under the proposed ordinance, the land which was previously the site of the 18th District Police Station would be redeveloped into a 26-story residential building containing 77 condominium units.

The building also would be include several environmentally friendly elements and amenities such as a 3,710 square feet of green roof on the 5th and 26th floors, 85 parking spaces, and a 300 square foot dog run on the 25th floor.

A rendering of the proposed tower.
https://extranet.emporis.com/files/transfer/6/2005/05/364897.jpg

https://extranet.emporis.com/files/transfer/6/2005/05/364898.jpg

Chi_Coruscant

July 6th, 2005, 03:22 AM

^I like the green roof. It will prevent water run-down.

geoff_diamond

July 6th, 2005, 08:17 AM

The tower's fine... I despise the "spine" of balconies running right up the gut though. They'd be better if they were flush with the rest of the facade rather than protruding.

But, as I always say, mediocre development is better than no development :)

BVictor1

July 6th, 2005, 01:55 PM

Building sale promises Randolph St. upgrade

July 6, 2005

BY DAVID ROEDER SUN-TIMES COLUMNIST

A firm that builds and operates apartment buildings has closed on the acquisition of a Jazz Age office building in the Loop. The deal could serve as a catalyst for improvement on a grubby stretch of Randolph Street.

Village Green Cos., in partnership with Everhardt & Nesis Co., has purchased the 45-story 188 W. Randolph building, best known here in recent years for showering terra cotta upon pedestrians near Randolph and Wells. It was bought out of bankruptcy for $10 million.

Based in Farmington Hills, Mich., Village Green has set itself apart in Chicago by investing in rental apartments and staying with them, not flipping them for condos. Its most recent project here was the conversion of an old office building at 185 N. Wabash into luxury apartments.

The company's chairman, Jonathan Holtzman, said he'll continue operating 188 W. Randolph, also called Randolph Tower, as an office building for 20 months while redevelopment plans are worked out with the city and the terra-cotta repairs continue. He said the building is only about 40 percent occupied and it's possible a major tenant, the Randolph Athletic Club, might remain after the conversion.

The 1929 building by the architectural firm Vitzhum and Burns could accommodate about 300 apartments, Holtzman said. But also of interest is the fate of three small buildings immediately east of 188 W. Randolph, properties the city once considered condemning for redevelopment.

Holtzman said he believes another buyer has a contract to purchase two of the buildings. The third building, 174 W. Randolph, is city-owned and under one plan would be leveled for a parking lot. He said he will monitor the situation to make sure any development will complement his plans.

Connie Buscemi, spokeswoman for the city's planning department, said the agency is unaware of any pending sale of the small buildings. No action has been taken on the parking lot proposed by Clovis Investment LLC. The design calls for cars to access the lot via an alley, something other parking operators grumbled the city would never allow anywhere else.

Chicago Shawn

July 7th, 2005, 07:13 AM

Some construction porn from today...

Prentice hospital
http://render.snapfish.com/render2/is=%3Dip6gXnoxRpxQQQQxeoQxlPPxQQQQeoQlPP0lPfVtB%7C%3DTj6gXPaxKjxQQoPxeoax0aGxv8uOc5xQQQQeoQlPP0lPKjfVtB%7CRup6JaQ%7CYup60Gn%7CRip6olle%7CRTj6nl%7C%3Dup6gX0PxqpxQQoPxeoax0aGxv8uOc5xQQQQeoQlPP0lPqpfVtB%7CYTj6eP%7CYip6oQQQ%7C//bd=no/of=50,480,480
http://render.snapfish.com/render2/is=%3Dip6gXnQxRpxQQQQxeoQxlPPxQQQQeoQlPP0lefVtB%7C%3DTj6gX0PxKjxQQoPxeoax0aGxv8uOc5xQQQQeoQlPP0leKjfVtB%7CRup60Gn%7CYup6JaQ%7CRip6oQQQ%7CRTj6eP%7C%3Dup6gX0GxqpxQQoPxeoax0aGxv8uOc5xQQQQeoQlPP0leqpfVtB%7CYTj6nl%7CYip6olle%7C//bd=no/of=50,480,480

600 LSD has the locations of caissons staked out...
http://render.snapfish.com/render2/is=%3Dip6gXnoxRpxQQQQxeoQxlP0xQQQQeoQlP0oP0fVtB%7C%3DTj6gXJQxKjxQQoPxeoax0aGxv8uOc5xQQQQeoQlP0oP0KjfVtB%7CRup60lQ%7CYup6JaQ%7CRip6Peoa%7CRTj6eo%7C%3Dup6gX0PxqpxQQoPxeoax0aGxv8uOc5xQQQQeoQlP0oP0qpfVtB%7CYTj6nl%7CYip6o0QJ%7C//bd=no/of=50,480,480
http://render.snapfish.com/render2/is=%3Dip6gXanxRpxQQQQxeoQxlP0xQQQQeoQlP0oPJfVtB%7C%3DTj6gXooxKjxQQoPxeoax0aGxv8uOc5xQQQQeoQlP0oPJKjfVtB%7CRup6JaQ%7CYup60lQ%7CRip6o0QJ%7CRTj6nl%7C%3Dup6gXooxqpxQQoPxeoax0aGxv8uOc5xQQQQeoQlP0oPJqpfVtB%7CYTj6eo%7CYip6Peoa%7C//bd=no/of=50,480,480
http://render.snapfish.com/render2/is=%3Dip6gXPexRpxQQQQxeoQxlP0xQQQQeoQlP0oPlfVtB%7C%3DTj6gXPxKjxQQoPxeoax0aGxv8uOc5xQQQQeoQlP0oPlKjfVtB%7CRup60lQ%7CYup6JaQ%7CRip6Peoa%7CRTj6eo%7C%3Dup6gXGxqpxQQoPxeoax0aGxv8uOc5xQQQQeoQlP0oPlqpfVtB%7CYTj6nl%7CYip6o0QJ%7C//bd=no/of=50,480,480

345 E. Ohio
http://render.snapfish.com/render2/is=%3Dip6gXGGxRpxQQQQxeoQxGnlxQQQQeoQGnlPPlfVtB%7C%3DTj6gX0PxKjxQQoPxeoax0aGxv8uOc5xQQQQeoQGnlPPlKjfVtB%7CRup6JaQ%7CYup60Gn%7CRip6olle%7CRTj6nl%7C%3Dup6gXPaxqpxQQoPxeoax0aGxv8uOc5xQQQQeoQGnlPPlqpfVtB%7CYTj6eP%7CYip6oQQQ%7C//bd=no/of=50,480,480
http://render.snapfish.com/render2/is=%3Dip6gXnoxRpxQQQQxeoQxGnlxQQQQeoQGnlPoJfVtB%7C%3DTj6gX0PxKjxQQoPxeoax0aGxv8uOc5xQQQQeoQGnlPoJKjfVtB%7CRup60Gn%7CYup6JaQ%7CRip6oQQQ%7CRTj6eP%7C%3Dup6gX0PxqpxQQoPxeoax0aGxv8uOc5xQQQQeoQGnlPoJqpfVtB%7CYTj6nl%7CYip6olle%7C//bd=no/of=50,480,480

Regatta
http://images.snapfish.com/3443937523232%7Ffp7%3Enu%3D3253%3E95%3A%3E5%3B7%3EWSNRCG%3D3232%3A437%3A3%3B%3A6nu0mrj
http://images.snapfish.com/3443937523232%7Ffp7%3Enu%3D3253%3E95%3A%3E5%3B7%3EWSNRCG%3D3232%3A437%3B4%3C%3B5nu0mrj
http://images.snapfish.com/3443937523232%7Ffp54%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E23239528%3A5%3B%3C7ot1lsi

1 South Dearborn
http://images.snapfish.com/344393%3A%3B23232%7Ffp63%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E232395287%3A%3B86ot1lsi
http://images.snapfish.com/344393%3A%3B23232%7Ffp63%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E232395287%3A%3B82ot1lsi
http://images.snapfish.com/344393%3A%3B23232%7Ffp3%3Enu%3D3253%3E95%3A%3E5%3B7%3EWSNRCG%3D3232%3A43789%3C6%3Anu0mrj
http://images.snapfish.com/344393%3A%3B23232%7Ffp58%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E232395287%3A%3B8%3Bot1lsi

Chi_Coruscant

July 7th, 2005, 02:26 PM

Robert Morris Adds 70,000 SF to State St. Lease
By Mark Ruda (www.globest.com)
Last updated: July 6, 2005 06:50pm

CHICAGO-Robert Morris College, which has anchored 401 S. State St. and helped create an “education corridor” in the South Loop, is expanding its long-term lease there by 70,000 sf. The college, which relocated from 180 N. LaSalle St. in 1998, now has 270,000 sf, or about 60% of the 114-year-old building owned by Oakbrook Terrace-based Anvan Realty.
The Central and South Loop is home to Columbia College, Roosevelt University, the School of the Art Institute as well as a DePaul University Downtown campus. The location in the “education corridor” is partly responsible for increased enrollment and the need for more space, says Studley executive vice president Joe Learner, who represented Robert Morris College in negotiations with Anvan Realty’s Tom Garrity. Although terms were not disclosed, the remaining space in the building is being marketed at $20.50 per sf on a modified gross lease basis.

In addition to 401 S. State St., Robert Morris College has satellite campuses in Bensenville, Orland Park and Waukegan. In addition to lease deals in those suburbs, Studley negotiated the college’s 10-year early lease extension in 2002.

ChicagoLover

July 7th, 2005, 03:34 PM

HMm... Thank you Chicago Shawn for satisfying my daily fix. So I suppose they are shoehorning a garage into the base of 1 South Dearborn along with the 20 foot lobby? How many cars?

BVictor1

July 7th, 2005, 08:29 PM

Hotel at State & Lake
Two-tower plan gets new push in West Loop

June 22, 2005

BY DAVID ROEDER SUN-TIMES COLUMNIST

....

STATE STREET SALE: The sale of the 201 N. State building closed Monday for $6.5 million. The buyer, Environmental Community Development Inc. of Lincolnshire, plans to replace the five-story building with a hotel and a new Fritzel's restaurant, an attempt to recreate a Chicago icon formerly at that location. The buyer was represented by George and Melvin Kaplan of Melvin M. Kaplan Realty Inc. The seller was the Joffrey Ballet of Chicago, which plans to build a studio a block away in a new residential tower planned for the northeast corner of State and Wabash.

ThirdCoast312

July 8th, 2005, 04:09 AM

didn't know wabash and state intersect ... and do we really need another HOTEL???? Am only for this hotel business going on if the city can learn to match its tourism promotion to its vast number of hotel rooms.

BVictor1

July 10th, 2005, 02:00 PM

ARCHITECTURE

Throwing tradition a curve
The Pritzkers' new Hyatt Center takes the edge off Chicago's relentless right angles

By Blair Kamin
Tribune architecture critic
Published July 10, 2005

Because it is Chicago's first post-9/11 skyscraper and its developers include the billionaire Pritzker family, which each year awards architecture's equivalent of the Nobel Prize, the new Hyatt Center office building was bound to attract a high level of scrutiny.

Would the Pritzkers produce a building that lives up to the prize's lofty rhetoric about contributions to humanity through the art of architecture?

Would the skyscraper creatively balance security and openness or would it be a fortress, like the proposed new Freedom Tower at ground zero? That question took on fresh urgency Thursday after a series of explosions ripped through London's subway system and destroyed a double-decker bus, killing at least 37 people.

The suavely curving, 49-story office building, it turns out, is very good, though not the show-stopping aesthetic statement some had hoped for and the Pritzkers themselves had planned before the Sept. 11, 2001, terrorist attacks prompted them to change their architect and ambitions in midstream.

Designed by Henry Cobb of the New York City firm of Pei Cobb Freed, the Hyatt Center cleverly accepts the constraints of tight budget and security features and, in the manner of a skilled practitioner of judo, turns them to the advantage of the cityscape.

The tower's curving walls of steel and glass lend it a distinct skyline presence, making it seem like a ship cutting through space. But it really excels at ground level, where its curves open its narrow, blocklong site to a small but artfully composed public plaza that has instantly established itself as a serene oasis amid the dense commercial canyon of South Wacker Drive.

Joining with the open space at the bottom of an equally fine new skyscraper across Monroe Street, the 52-story 111 South Wacker Drive, the Hyatt Center forms an elegant, pedestrian-friendly gateway to the Loop.

The design reveals how architects can deftly layer security features into their buildings rather than letting the need to fortify overrun the desire to beautify. And while its curves appear to be a heretical departure from the relentless right angles of Chicago's street grid and skyline, the skyscraper actually fits into the city's vaunted tradition of hard-nosed, but high-quality, commercial design.

Located at 71 S. Wacker, two blocks north of Sears Tower and set to have its ceremonial opening July 19, the Hyatt Center originally was to have been designed by Lord Norman Foster, the Pritzker Prize-winning London architect renowned for his spectacular, ecologically conscious office buildings. It was to be a corporate headquarters with a lavish budget. The design was to make "a special shout," in the words of the Pritzkers' development partner, John W. Higgins, chairman of Higgins Development Partners of Chicago.

Foster's plan called for a rectangular office block linked by bridges to a rectangular core for elevators and other services. A towering atrium would have soared between the offices and the service core.

But on Sept. 12, 2001, Penny Pritzker, president of the Pritzker Realty Group, called Foster and told him the project was dead. The first Gulf War in 1990-91 had had severe economic consequences for the Pritzkers' Hyatt hotel chain, and "we knew this was worse," she said in an interview last week. The prospect of a major downturn in the hotel business made going forward with Foster's ambitious design unthinkable.

In many respects, it is remarkable that the Hyatt Center turned out as well as it did, given what then transpired.

The tower was, in effect, downgraded from a corporate headquarters to a speculative office building that would have to attract tenants and be built on a tight budget and a tight time frame. In response to 9/11, the building's security features were ratcheted up. And a new architect of less starpower was brought on -- Cobb, a distinguished elder statesman whose best-known work is Boston's John Hancock Tower, an abstract, mirror-glass high-rise that seems to disappear into the sky.

Cobb seemed like a conservative choice. Yet his skill would be a decisive factor in making the project a success.

Cobb flew to Chicago and walked the long, rectangular site, which, he quickly realized, would be hemmed in on the north by Helmut Jahn's 1 S. Wacker office building and on the south by the 111 S. Wacker project.

No corner offices

He also read a document, known as a program, that laid out the functional needs of a key prospective tenant, the law firm of Mayer, Brown, Rowe & Maw. Critically, the lawyers weren't demanding corner offices, which inevitably lead to boxy or serrated exteriors.

Cobb jumped on that detail, sketching a plan for a fish-shaped office tower that offered several advantages: It would have no corner offices, offer more expansive views than a conventional box, carve out room for the plaza and be architecturally distinctive. Mayer Brown and the developers bought the idea, though the curving building would cost slightly more than a conventional box.

So did other key tenants, including IBM, Charter One and Goldman Sachs, the global investment banking, securities and investment management firm.

While Cobb already had completed a curving office tower at La Defense in Paris and some wondered whether the Hyatt Center would be a retread, the soundness of Cobb's concept is apparent now that the tower is complete.

The curve is the key to the building's skyline success. Without it, the tower's horizontal bands of stainless steel and glass would be a visual bore. Yet the curve energizes the bands, making them appear to sweep around the tower and making the tower itself seem as if it is steaming forward, like a great ship.

Even though the Hyatt Center is less than half as tall as Sears, it nonetheless has an assertive skyline presence, its ship shape clearly visible from such everyday vantage points as the Kennedy Expressway, the boat cruise on the Chicago River and Grant Park.

Equally important is the way the tower's curves end -- not in a rounded prow but in solid, angled steel-covered walls that suggest the mouth of a fish. Resolutely vertical, these end walls establish a simmering tension with the horizontality of the bands, giving the tower the right dose of Chicago toughness.

In another well-handled detail, window frames are set flush with the facade, avoiding costly projections and enhancing the tower's continuity of line. "Let's face it," says Cobb, "if you're doing a budget building, keep it smooth. What makes it affordable is the fact that it doesn't have relief."

The lone fault is in the surface of the stainless steel, which suffers in some places from the dimpled effect architects call "oil canning."

Obligations of skyscrapers

Cobb often speaks of the social obligations of skyscrapers, saying they should be good citizens, especially as they meet the street. His performance at ground level lives up to that challenge. He and Chicago landscape architect Peter Schaudt have deftly balanced security needs and a desire for openness in the interconnected spaces of the Hyatt Center's public plaza and lobby.

Casual passersby may not realize that the planter boxes in the plaza are designed to keep a car- or truck-bomb away from the building's concrete-encased supporting columns. Yet the boxes do that double duty, an assignment they carry out far more gracefully than a graveyardlike row of bollards.

The free-form curves of the planters sensitively extend the office tower's curving geometry. And the planters offer a good combination of perimeter sitting areas and intimate, circular nichelike spaces. Still, few people seem to be sitting on the bent-grass lawns that fill them.

Inside, Cobb has turned the need for metal detectors to his advantage, shaping an entry sequence that actually improves upon the modernist convention of the wide-open, but spatially undernourished, office building lobby.

Instead, he gives you this eventful sequence: You pass beneath low canopies on the Wacker and Franklin Street ends of the building and arrive in one of a pair of skylit, 50-foot-tall outer lobbies.

From there, if you are an office worker or an approved visitor, you go through a low-ceilinged metal detector area before heading into another expansive space -- the tower's curving inner lobby, which extends the length of the building and is lined with a veil of bamboo trees and bubbling fountains as it leads to the elevators.

While the public isn't allowed to venture into the serene inner lobby, it still gets the visual bonus of an indoor extension of the plaza's green space.

The tower's office floors appear to be attractive work places, an impression confirmed by a Mayer, Brown lawyer who offered the following observations: Lawyers appreciate their new quarters' openness and light-filled quality. Uninterrupted, curving hallways encourage people to interact. Still, the building's curving shape hasn't really eliminated the hierarchy once created by corner offices. Senior lawyers took offices with the prime views, looking northeast toward the skyline and the lake.

In other words, everything at the Hyatt Center is operating normally, or at least as normally as one can expect within the new realities of the post 9/11 world. While Cobb's tower may not set the architectural world on fire, it is nonetheless a distinguished contribution to the Chicago skyline and to the broader culture. Following the unveiling of the fortresslike Freedom Tower, it offers an alternative vision, one in which our fears -- and, thus, our buildings -- remain in proper proportion.

- - -

The Loop gets bold, inviting gateway

The Spanish Revival Wrigley Building and the neo-Gothic Tribune Tower shape a stylish entrance to North Michigan Avenue. Now the Hyatt Center and its equally appealing counterpart across Monroe Street, the new office building known as 111 South Wacker Drive, are putting a fresh spin on this tradition, using the abstract forms of modernism to usher into and out of the Loop commuters who use the nearby train stations.

Even though the two buildings were designed in different manners by different architects for different developers -- and neither team communicated with the other -- they work surprisingly well together. Maybe the late, great Chicago modernist Ludwig Mies van der Rohe had it right when he said, "Build, don't talk."

Designed by Jim Goettsch of the Chicago firm of Lohan Caprile Goettsch and developed by the John Buck Co. of Chicago, the 52-story 111 S. Wacker is a muscular skyscraper that reveals its internal structure rather than concealing it, as the Hyatt Center does. Yet like the Hyatt Center, it makes a civilized, curvaceous clearing at ground level.

The big move is structural: V-shaped diagonal columns, expressed in the facade's lower portions, transfer the building's loads to beefy columns that meet the ground. The spans between these columns measures a jaw-dropping 80 feet, providing a remarkable degree of openness even though the building's footprint occupies nearly the entire site.

An oval-shaped lobby that slips beneath the building's boxy office and parking garage floors adds to the sense of spaciousness. It is wrapped in an extraordinarily transparent wall of cable-supported glass, almost making the distinction between inside and outside disappear. At the Hyatt Center, space flows around the building's curving, shiplike form. Here, space flows right through the lobby.

The visual drama is enhanced by what passersby can glimpse inside -- a stepping, curved ceiling that echoes the contours of a parking garage ramp that passes directly above it. Perhaps the ceiling's accent lights are a bit bright. Yet one can forgive that fault when the lobby is seen in the broader picture of the show that 111 S. Wacker puts on at ground level and the amenities it places there, including granite-clad benches.

111 S. Wacker and the Hyatt Center are as urbanistically responsible as the handsome pair of gateway towers that lead into the Loop at the eastern end of Monroe, the University Club at 76 E. Monroe and the Monroe Building at 104 S. Michigan Ave. Both were designed by Chicago architects Holabird & Roche in the early 20th Century, with complementary Gothic details and gabled roof silhouettes. At Wacker and Monroe, though, the gateway moves are at the bottom, not the top. It makes sense: Put the gateways at the base, right where pedestrians can see (and use) them.

-- B.K.

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bkamin@tribune.com

BVictor1

July 10th, 2005, 02:04 PM

THE MARKET
Rental high-rise story far from over

Wayne Faulkner, Real Estate editor
Published July 10, 2005

Just when we thought condo conversions were turning the rental high-rise into a dinosaur, along come three new ones for downtown Chicago.

And that's in addition to the Shoreham at Lakeshore East, already up and running.

Two are planned by Golub & Co. for East Ohio Street in Streeterville, with 49 and 51 stories and about 900 units. One is under construction.

The third, however, was built in 1929. Village Green Cos., in conjunction with Everhardt & Nesis Co., has closed on the purchase of Randolph Tower, 188 W. Randolph St., and plans to restore the 45-story building and convert it into 300 apartments plus 9,800 square feet of retail and restaurant space.

Village Green bought the gothic revival building out of bankruptcy, according to the developer and manager of apartment properties, based in Farmington Hills, Mich.

The company says it will rename the property Randolph Tower City Apartments, part of its "City Apartments" brand, which in Chicago also includes Fisher Building City Apartments with 184 units and Medical District City Apartments with 412 units. It also is turning the old Medical Arts Building at Lake Street and Wabash Avenue into the 192-unit MDA City Apartments, with first occupancies this month.

The company said the office building will continue operating as it is for about 20 months while it develops plans with the city and Ald. Burton L. Natarus (42nd).

Village Green would not discuss details of its purchase, but 188 W. Randolph had been encumbered with building-code violations.

107 years old, 3 owners

Not long ago I wrote about a mid-20th Century house for sale on the Gold Coast -- the Florsheim Mansion. Its architecture, though elegant, is in the minority in that tony area.

If you want 19th Century architecture, then a house once owned by the Ryerson family might pique your interest.

The asking price for the 12,000-square-foot mansion is $6 million. And if you were to buy it, you'd be only the fourth owner since it was built in 1898, according to listing agent, Wendy Berger Shapiro of Baum Realty Group.

In 1894, George W. Meeker, a confidant of Abraham Lincoln, commissioned the Holibard & Root architecture firm to build this structure.

In 1919, Edward Ryerson of Inland Steel bought it, according to Shapiro.

The Ryersons lived there until 1965 and so loved the house they aimed to tear it down, rather than sell it to someone who would not be a good steward, according to the current owners.

In fact, Mrs. Ryerson would hide in the broom closet under the stairwell to hear prospective buyers' comments. When she heard one prospect say, "I want it and I won't change a thing," she and her husband decided to sell to them, according to the current owners. They were the lucky couple.

The facade is landmarked, according to Shapiro. Much of the original woodwork remains, as well as wood floors under carpeting, she added. It also has two kitchens, four baths and four half baths, seven working fireplaces, two working dumbwaiters and a wine cellar. Outside is a garden terrace that measures about 25 by 10 feet. Property taxes last year were $34,995.

In 1923, Ryerson added on to the house in such a way that the elevation of the home rises gradually from the front steps to the library addition. That rise equals a flight of stairs, Shapiro said, so the two-car garage space under the library is at grade level.

If 12,000 square feet isn't enough, that addition was built to accommodate two more stories atop it, Shapiro said. All original contractor specs plus the blueprints for every addition Ryerson made come with the house.

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BVictor1

July 10th, 2005, 02:12 PM

Wrigley Building is seen in new light
High-tech bulbs will go on later this month

By John McCormick
Tribune staff reporter
Published July 10, 2005

The stately Wrigley Building, whose white terra cotta facade has made it a Chicago landmark for decades, will soon be lit at night by more focused beams, reducing what some consider light pollution in an area that will eventually include Donald Trump's hotel and condominium tower.

In a move that could change the look of the Magnificent Mile's southern sky, the Wm. Wrigley Jr. Co. says it will turn on a high-tech set of new lights later this month, replacing a massive bank of stadium-strength bulbs that have lit the structure from across the Chicago River since 1971.

The new illumination will come from Popsicle-shaped lampposts that are already drawing some strange looks from passersby.

"It's just hideous," said Elizabeth Richard, a Michigan Avenue resident who walks by the light posts daily. "But it's like anything. Your eyesight eventually gets used to the obstruction."

From Michigan Avenue, the new tan-colored posts block some of the building's sight lines and clash with its white walls. But company representatives say the new lighting will bring many benefits.

"The change is being made to enhance the appearance of the building and to minimize any lighting spillover," said Wrigley spokesman Christopher Perille. "It is also going to be more energy efficient and cost effective."

Like the crown of light atop the Merchandise Mart and the antenna spires on the Sears Tower, the white glow on the Wrigley Building's two Spanish Revival-style towers is a trademark of nighttime Chicago. So any modifications at 400-410 N. Michigan Ave. offer the possibility for controversy.

Wrigley representatives, who are providing few details about the new system, promise the changes will not harm the architectural gem's appearance.

The modification comes at a time when the company is studying its long-term real estate needs and a possible move from its historic headquarters, a development that has prompted some real estate speculators to suggest that the building could someday be turned into luxury condominiums.

If the building ever goes condo, the conversion could be complicated by its nighttime illumination, real estate experts have suggested. While the lighting poses few problems for office workers who leave at dusk, it could be an issue for residents trying to sleep.

The gum and candy company first mentioned replacement of the current lights in 2002, as part of an unfulfilled redevelopment plan that was to bring shops and upscale boutiques to the historic structure.

That was after Trump announced plans for the Trump International Hotel & Tower Chicago, a mixed-use building on the former site of the Chicago Sun-Times that is scheduled to be completed in 2007.

But Perille said the new lights have nothing to do with Trump.

"It had zero to do with any other developments in the area," he said. "But [Trump residents] will benefit to the extent that any other building neighbor benefits."

Jill Cremer, vice president of development for the Trump organization, said the Wrigley Building's lighting never came up during site negotiations.

"Their current lighting scheme was never an issue," she said. "It's a great asset the way it is."

Lee Bey, a spokesman for Trump's architects, the Chicago firm of Skidmore, Owings & Merrill, said the old lights would have cast "some spillage" onto non-housing floors of the structure, but it was never factored into the building's design.

But Wrigley's bright lights have long bothered south-facing residents in the nearby 54-story River Plaza tower at 405 N. Wabash Ave., a building that combines condos and offices.

"With the new lights, we hope it won't be as bright," said Winston Tsao, who since 2001 has lived in a unit on the 45th floor that faces south. "It's like any other inconvenience, like sirens. But you get used to it."

The new lights are atop poles about the height of streetlights. They have metal shades that wrap around two-thirds of their bulb area. Two have been erected on the west side of Michigan Avenue near the Wrigley Building and three more are on the east side of the street.

Behind the building, two additional lights have been placed on a Rush Street sidewalk, near a restaurant entrance. Perille said the lights behind the building have already been tested on recent nights.

The new system was designed by Hellmuth, Obata + Kassabaum (HOK) in St. Louis. But a lighting architect for the firm who worked on the project declined to answer any questions about the lights, saying Wrigley had sworn him to secrecy.

Wrigley has agreed to pay the city $15,471 annually for the right to place the structures on public sidewalks.

Ald. Burton Natarus (42nd), who represents the area, said he likes the new light posts.

"They are attractive," he said. "But I want them pointed in the right direction, and they will be."

John Maxson, president of the Greater North Michigan Avenue Association, said he has heard no complaints about the look of the new lights, though nearby residents have long beefed about the existing lights shining in their windows, especially when it is foggy.

"The residents were complaining about light coming from the old system and it was probably only going to get worse with the Trump Tower," he said.

The change in lighting isn't the first for the building, which has been illuminated by various methods since its completion in the early 1920s.

When the Michigan Avenue bridge was opened in 1920, more than 100 floodlights were installed on the roof of a nearby soap factory.

By the early 1930s, a red brick warehouse east of the Michigan Avenue bridge held the lights. They remained there for nearly 40 years, until the warehouse was demolished.

The lights were then moved to a 180-foot, billboard-like structure between the upper and lower levels of East Wacker Drive, on the south side of the river and east of the Michigan Avenue Bridge.

There have been periods of darkness. During World War II, Wrigley donated its lights for use at the Great Lakes Naval Training Center. And during the energy crisis of late 1973 and early 1974, the 218,000 watts of light were shut down as a conservation measure.

Besides the lights on the river, Wrigley has also used 16 1,000-watt lights west of the building, according to its Web site. To help create the effect of gradual brightness toward the top, 62 lights were installed on the building itself.

David Bahlman, executive director of the Landmarks Preservation Council of Illinois, said he has only a few concerns about the new lighting arrangement, mostly with the aesthetics of the light posts on what he considers an already overly crowded and commercialized North Michigan Avenue.

"My opinion is that it is not a preservation issue," he said.

----------

mccormickj@tribune.com

spyguy

July 10th, 2005, 09:17 PM

They better not leave the building and make it into luxury condos...if people want that they can buy into the many buildings around the city.

BVictor1

July 10th, 2005, 10:29 PM

Originally posted by Jaroslaw in the SSP Forum.

In today's Tribune (it was lying around at a cafe), there is a neat drawing of Central Station, with a new building apparently planned to the S of Lofts II (bottom left corner):

http://home.uchicago.edu/~jaroslaw/mu.ren.jpg

A couple of neat buildings there now:

http://home.uchicago.edu/~jaroslaw/mu.jpg

Edit: ss.com has it listed as 1337-1355 South Michigan Avenue, 32F, proposed.

The property is at 1337-1355 South Michigan will be improved with a 32-story building containing comercial/retail at its base, 260 dwelling units and accessory parking.

Interesting top. I will stop by the sales center tomorrow.

Chi_Coruscant

July 10th, 2005, 11:32 PM

I apologized if it was already posted.
---------------------------------------------
Glass and glitz are the new traditions in Streeterville

By John Handley
Tribune staff reporter
Published July 10, 2005

Glass is in. Concrete and brick are out.

Modern is in. Traditional is out.

Those are the guiding lights of Chicago's leading architects who are competing — informally — to design unique skyscrapers for a glitzy new neighborhood.

Their entries in what they hope will be the best of 21st Century residential architecture soon will tower over the south end of Streeterville, the fast developing neighborhood between North Michigan Avenue and Navy Pier.

Suddenly hot, Streeterville will sprout 13 new high-rise condos in the next two years, adding 3,500 residential units.
None of the towers is ordinary. All are contemporary..

Why the switch from the old-style buildings of concrete, brick and stone?

"Developers have discovered that great design actually sells condos," explained David Hovey, president of Optima Inc., an architectural and development firm in Glencoe.

"The surge in contemporary architecture means there is an alternative to bland buildings. It's a breath of fresh air," Hovey added.

Helmut Jahn, internationally known architect of the James R. Thompson Center and the United Airlines terminal at O'Hare International Airport, has designed his first residential high-rise in Chicago for a Streeterville location.

"It will have a total glass and metal skin. No exposed concrete outside. All the balconies are recessed and part of the curtain wall," said Jahn, describing his 41-story condo that will be built at 600 N. Fairbanks Ct. "This building will be different from what you normally see. I call it urbanistically sophisticated."

The building will have a rounded corner at the intersection of Fairbanks and Ohio Street, and one side curves upward from the base.

Jahn noted that there have been complaints about the architecture of some Chicago high-rise condos built in recent years. "In a hot market, you can sell anything. But it's fortunate now that some developers want to do something better," he said.

Gary Rosenberg, president of Urban R2 Development, developer of 600 N. Fairbanks, said it will be "a work of art itself."

Jahn is not as optimistic about all the other residential towers going up in Streeterville. "My expectations are not high. We'll have to wait until they are built."

From residents' perspective, Hovey noted that buildings with floor-to-ceiling glass windows are more livable. "The views are better, and there is more light inside."

"High-rise living is all about the views," said Robert Bistry of Built Form Architects, designer of Avenue East, the 27-story condo to be built at 160 E. Illinois St., directly behind the Intercontinental Hotel at 505 N. Michigan Ave. It will have only three sides with windows.

"Architecturally, Avenue East will be a transition between the classic buildings on Michigan Avenue, including Tribune Tower and the Wrigley Building, and the new high-rises in Streeterville. The east facade will be more glassy than the sides," Bistry said.

"The refreshing, friendly architectural competition in Streeterville is good for the city," he added.

"Most developers want a safe and predictable look, so less interesting architecture has been the result," said David Brininstool, partner in the Chicago architectural firm of Brininstool & Lynch, designer of 550 St. Clair, a 26-story condo to be built at St. Clair and Ohio Streets.

"What's happening now," he said, "is that developers feel architecture has value in the marketplace."

Another force affecting design comes from City Hall. "Mayor Daley didn't like contemporary architecture before. But now he's coming around," said 550 St. Clair developer Mark Sutherland, principal of Sutherland Pearsall Development.

"There has been a definite change in climate at City Hall. Now they are encouraging contemporary design," Brininstool said. "Before, city employees were trying to read the mayor's mind. They thought he wanted red brick and limestone."

"Now is one of the most exciting times in 25 years as an architect. Great work is possible again," Brininstool said.

One key developer looks south for proof of the trend. "Millennium Park was one indication that the city had changed its thinking," said Daniel McLean, president of MCL Cos., builder of three Streeterville condo towers. "Now contemporary architecture is more accepted and main stream. The public has embraced the clean, modern look."

McLean described the look of his latest Streeterville project, Park View, as "soaring glass." Designed by the architectural firm of Solomon Cordwell & Buenz, it will have 47 stories and 270 units and is scheduled to begin in the fourth quarter.

Why is Streeterville emerging as a showcase for modern architecture?

Abe Lincoln started it all. He charged $350 in 1858 for legal work in forming Chicago Dock and Canal Trust, a real estate investment firm that became a major landowner in Streeterville.

Then came "Cap" Streeter, who ran his ship aground in 1886 on a sandbar offshore of what is now Chicago Avenue and Superior Street. He decided to stay and gave the neighborhood its name.

Though just east of Michigan Avenue, south Streeterville has been slow to develop. Gradually, the sea of street-level parking lots and industrial sites is giving way to more residential buildings.

The latest condo explosion will fill in most of the vacant sites.

"Streeterville's time has come," said 550 St. Clair developer Sutherland, who added that his firm is planning another residential project in the neighborhood.

First occupancies at 550 are scheduled for the third quarter of 2007.

He says he doesn't fear the competition of the other new buildings being launched at nearly the same time. "No, the momentum of all the projects will help us," he said.

Real estate analyst Steven Friedman, president of S.B. Friedman Co., explained why Streeterville is suddenly hot. "There's land there." He added that the emergence of Chicago as a leisure destination has helped spark the popularity of city living.

"Streeterville is the only place where there are vacant sites near the lake and river," said Gail Lissner, vice president of Appraisal Research Counselors. And, she foresees no threat to the launching of the Streeterville projects. Despite fears about the overheated housing market nationally, Chicago condo sales and traffic remain strong, according to Lissner.

Not everyone is looking forward to more construction in Streeterville. The panoramic views of some existing residents will be blocked by the new buildings. These residents also fear the Manhattanization of the neighborhood, resulting in high-rise canyons towering over gridlocked traffic.

Ald. Burton Natarus (42nd), who represents the area, stressed that the neighborhood was approved as a high-rise area in the 1980s, when Chicago Dock and Canal plans were approved.

But McLean, a pioneer in Streeterville condos, sees a different outcome:

"This is the most complete downtown neighborhood in the city," he said, adding that the new projects will increase foot traffic on Streeterville's streets and make it a real neighborhood.

"Streeterville has the river, the lake, a new art gallery, sightseeing boat tours, grocery stores, two hotels, a movie theater, dozens of restaurants, a fountain on the river and views of the city's skyline from many buildings."

As cranes start cropping up, it appears that "Cap" Streeter's new neighborhood has set sail, and no sandbars are likely to block its progress.

Chi_Coruscant

July 11th, 2005, 02:35 PM

Interesting tidbit...........
July 11, 2005

BY BILL ZWECKER SUN-TIMES COLUMNIST Advertisement

TERRA TIDBIT: Word flying around local real estate circles has it that the site of the now-shuttered Terra Museum of American Art on Michigan Avenue is going to be turned into a super-exclusive Ritz-Carlton condominium project, designed by noted Chicago traditionalist architect Lucien Lagrange.

ChicagoLover

July 11th, 2005, 07:08 PM

Man I've seen enough of Lucien LaGrange

ChicagoLover

July 11th, 2005, 07:11 PM

I wish more wealthy people had some semblance of class. They need consultants analogous to those on the show "What Not to Wear" for rich people, who will instruct about "What not to Buy" in general. Particularly houses. These McMansions and McTowers are driving me crazy. Rich people obviously have an inordinate influence on the landscape. More architectural choices need to be done by experts, not ignoramuses. Then these developers couldn't get away with building so much garbage or rehash.

Chicago Shawn

July 11th, 2005, 09:22 PM

Victor and I paid a visit to the sales center after running into eachother, and I am pleased to report...

-Walsh Construction will begin site prep on Friday

-The Mansard roof has been redisgned from the squat hip-roof to an elegant gable with an increased pitch. The roof it self will hide a cooling tower.

-The tower has 47 stories, with residential ending on 46. The cooling tower and mansard roof will rise from floor 48. The tower will have a siries of small set backs toward the top.

-The tower will be clad in real hand-laid brick, the base however will be pre-cast.

-Total height is.......Drumroll please.......................................................................................................................... 513'-7"

We have another 500 footer about to begin! :D

BVictor1

July 12th, 2005, 04:26 AM

kayosthery

July 12th, 2005, 06:22 AM

Finally, we have been waiting over a year for that one to start. The group I work with thought we were going there months ago.

BVictor1

July 12th, 2005, 09:11 AM

Finally, we have been waiting over a year for that one to start. The group I work with thought we were going there months ago.

Is that where you'll be going after you finish the work you are doing at 345 Ohio? I'd like to meet you before you transfer locations.

BVictor1

July 12th, 2005, 02:15 PM

Chicago draws more tourists, especially from overseas

July 12, 2005

BY SANDRA GUY Business Reporter

Anyone who window-shops the Magnificent Mile could verify a report to be released today showing that tourists have come flooding back to Chicago.

A record 31.9 million travelers visited Chicago last year, a 7 percent increase from 2003 and the highest overall total in the past seven years, according to the Chicago Convention and Tourism Bureau.

The numbers showed Chicago attracted greater business, leisure and overseas visitors in 2004 than in 2003.

The biggest jump -- a whopping 20.6 percent increase from 2003 -- occurred in overseas tourist visits, reversing a steady decline since 2000. The attractiveness of the United States as a tourist destination increased as the value of the U.S. dollar decreased throughout 2004, and Chicago was a prime beneficiary.

Last year, 935,000 overseas tourists visited Chicago, but the total still trailed the record high of 1.35 million reached in 2000.

Business tourism increased 5.5 percent from 2003, with 13.2 million business travelers stopping in Chicago last year, according to the report. The total was a decline from a high of 13.99 million in 2002, according to the report, which covers data from 1997 through 2004.

But Chicago beat Orlando and New York to be the No. 1 business tourist destination last year.

Leisure travel to Chicago rose 7.5 percent in 2004 to 17.75 million visitors. Chicago ranked No. 4 in leisure travel, trailing Orlando, Las Vegas and New York.

The spike in tourism benefited Chicago hotels, which reported 80 percent occupancy rates on weekends, and close to 90 percent rates on weekends from June through August 2004, according to the report.

This year is showing positive trends, too, with the number of occupied hotel rooms up 3.1 percent through June from the same time a year ago.

However, the average downtown hotel rate in 2004 was $154.71, lower than the average $155.60 in 2003 and a peak rate of $169.71 in 2000, according to the bureau.

Chicago is counting on an improving economy and its new McCormick Place West Building, scheduled to be occupied in early 2008, to attract more tourists, especially business travelers, in the future.

spyguy

July 12th, 2005, 04:38 PM

Maybe all these hotels are needed? But good news anyway.

Chi_Coruscant

July 13th, 2005, 03:02 PM

Buyers of land in Loop aim for high-rise hotel

July 13, 2005

BY DAVID ROEDER SUN-TIMES COLUMNIST Advertisement

Property at 215 W. Washington is a candidate for a new downtown hotel. Sources said there's a tentative deal to sell the site to the commercial finance arm of General Electric Co. and one of its Chicago-based subsidiaries, InterPark Holdings Inc.

The sources said the plans for the property call for a parking garage topped by a hotel. They said the selling price is in the range of $10 million to $11 million.

Specifics on the plans couldn't be learned, but many real estate experts believe the site could work for a luxury hotel that would compete with the former Midland, now called the W Chicago City Center, at 172 W. Adams. Marshall Peck, chief executive at InterPark, declined to comment, as did a spokeswoman for GE. The marketing agent for the site, Martin Stern of U.S. Equities Realty LLC, did not return calls.

The property was the site of the now-demolished Hotel LaSalle Garage, a valet parking operation that had only one ramp for moving cars up and down. It opened in 1918 as an early attempt to get Model Ts off the muddy streets of downtown. It was designed by the famous firm Holabird & Roche to look like the surrounding office buildings.

A family trust in California has owned the site for years.

GALEWOOD TALE: A possible compromise has emerged in the longstanding stalemate between developer Cal Boender and city officials over development of Galewood Yards on the Northwest Side. City planners have demanded the 50-acre site be reserved for industrial use, which Boender, president of North Development Ltd., has insisted is a dead market. He maintains he could put homes and movie theaters there in a flash.

A source reports Boender is close to a deal with the Chicago unit of the Laborers International Union that could end the impasse. The union is said to want about 20 acres on the western part of the property for a training center. If that happens, the city would then agree to the theaters and about 150 homes on the eastern half. Boender declined to comment.

Galewood Yards is old railroad property at 1900 N. Central. The training center would supplement a similar operation the Laborers have in Carol Stream. The union wants a city location to help it recruit minorities.

COOPERATIVE PLAN: Working in tandem, two investor groups are taking the wraps off plans for condo projects that will extend along the east side of State Street between 8th and 9th. On the southern parcel, William Warman plans a 30-story, 240-unit building called Astoria Tower. Warman said he hopes to start construction by next summer and forecast prices ranging from $150,000 to $700,000.

He's working with Jerry Karp and Wayne Chertow, who have the northern parcel, which would get a 10-story building with 97 units. The zoning for both is in place, and everyone is working with the same architect, Patrick Fitzgerald. This is one deal in which participation by investor-buyers is expected; Warman said some buyers are expected to rent the units to students.

HOTEL HANDSHAKE: The $30 million renovation of the landmark Majestic Building at 22 W. Monroe now has an operator for its future hotel. Hampton Inn has agreed to run the 135-room operation, a vertical version of its limited-service style. So says Michael Tobin, partner at Northern Realty Group Ltd., which is redeveloping the building with the Nederlander Organization. He said the hotel should open in the fall of 2006. The rehab also involves the building's Shubert Theatre, which will be renamed for sponsor LaSalle Bank.

Chi_Coruscant

July 13th, 2005, 03:08 PM

Record set for condo conversions
$90 million price tag for 2 new projects
By Thomas A. Corfman
Tribune staff reporter
Published July 13, 2005

Like the market for new construction, downtown condominium conversions also are tearing up the record books.

As many as 3,500 former apartment units are predicted to go up for sale as condos this year, shattering the record of 2,424 units set in 1994, according to Appraisal Research Counselors. The first-quarter report tracks project announcements rather than sales.

The Chicago-based consulting firm says the number of announced conversion projects could top 4,100 units, though many of those are priced at the top end of the market.

In the latest sign that conversions are red hot, developers in separate deals in the last week have acquired two apartment buildings at opposite ends of downtown Chicago in transactions worth a total of about $90 million.

The market is "real pricey," said James Letchinger, president of Chicago-based JDL Development Corp.,

In its first condo conversion deal, JDL on Monday purchased the 355-unit Printers Square complex in the South Loop. The five-building complex, at 700 S. Federal St., includes a 217-car garage. The price was in the mid-$40 million range, sources said.

Amid the increasingly crowded condo conversion market, JDL is looking to distinguish the Printers Square project with lower prices. More than half of the units will be less than $200,000 each, Letchinger said.

The deal does not include 161,550 square feet of commercial space, most of which is leased to telecommunications firms.

The seller, Chicago-based Waterton Associates LLC, which was advised by real estate firm CB Richard Ellis Inc., has opted to retain that space. Digital Realty Trust Inc. of San Francisco said this month that a deal to buy the space for $37.5 million had died.

In the second deal, in Streeterville, Burr Ridge-based Vilas Development Corp. last week purchased 222 E. Pearson St. The 213-unit building, constructed in 1963, was owned by an affiliate of Chicago-based Pearl Associates Real Estate Management Inc.

The price was about $47 million, said Greg Moyer, managing director with Marcus & Millichap Real Estate Investment Brokerage Co., which represented Pearl.

The two projects follow a parade of other notable condo conversion projects, including:

- 400 N. LaSalle St., a 452-unit apartment tower purchased for $126 million by a venture that includes Chicago-based Draper & Kramer Inc.

- 1400 Lake Shore Drive, a 398-unit building in the Gold Coast that Chicago-based RDM Development and Investment LLC has agreed to buy for about $65 million, sources said.

- The west tower of the two-tower Grand Plaza complex in River North, which Chicago-based Terrapin Properties LLC has agreed to buy for a price in the mid-$90 million range. The 283-unit building has an address of 545 N. Dearborn St.

In terms of sales, Appraisal Research says conversion units accounted for 1,233, or nearly 20 percent, of the record 6,298 new homes sold last year in the area that stretches from Cermak Road on the south to North Avenue and from the lake to, roughly, the Dan Ryan and Kennedy Expressways.

During the first quarter of 2005, sales agreements were reached for 972 conversion units, the most since the downtown housing boom began in late 1997.

Appraisal Research says between 20 percent and 30 percent of conversion units are bought by investors who are looking to put the units back on the rental market, a potential cause for concern if rents drop sharply.

But a demographic trend is also at work, particularly for lower-priced units, as the children of Baby Boomers become old enough to own homes, Moyer said.

And he dismissed fears of a housing bubble, at least in Chicago.

"I'm not selling Ft. Lauderdale real estate," Moyer said.

kayosthery

July 14th, 2005, 03:56 AM

Is that where you'll be going after you finish the work you are doing at 345 Ohio? I'd like to meet you before you transfer locations.

I'm not sure where I'm going. It looks like I'll be switching over to project management in a week or two, and that could put me anywhere from the concrete division to heavy highway or even special projects. I have requested to stay with the concrete division so that I can keep working on the highrises.
We have 2 floors left to frame on the garage and then my crew is rumored to be going out to Bolingbrook to do the Advocate Hospital out there. Otherwise, I've heard that Walsh has another building in Lakeshore East, another building in the south Loop, possibly doing "The Legacy," as well as the Columbian starting this week. So, there are many options for me.
Let me know when you plan to visit the jobsite again and I'll come down and introduce myself. I've met Shawn before, but I don't think I would remember what he looks like, it was a very short discussion about emporis, this website and SSP.com.
By the way, I asked a superintendent at work today if the Columbian was starting this week. He said that it was being delayed another month. I hope your sources are better than his and this project will finally be getting under way.

BVictor1

July 14th, 2005, 10:35 AM

7/13/2005 10:00:00 PM Email this article • Print this article
Terra cotta teardown?
As preservationists cringe, Central Station eyes orange-rated Michigan Avenue structure

By HAYDN BUSH, Staff Writer

The developers of Central Station apparently have their eyes on a major westward expansion that would result in the demolition of a terra cotta-clad building at 1355 S. Michigan Avenue and the construction of a new residential highrise. The nascent proposal has already drawn fire from Preservation Chicago Vice President Michael Moran, who says tearing down the building would further sterilize the South Loop, and demolish a structure already noted for its significance by the city’s Historic Resources Survey.

Karen Levy, a spokesperson for the Enterprise Company charged with developing the site, confirmed Wednesday that the company is working on a development at 1355 S. Michigan Avenue, but said that the project was in the early planning stages, and that no further information was available. The Enterprise Company has helped develop earlier stages of Central Station, and would be involved in the latest development as well.

"We’re not in a position to talk about it publicly," Levy said.

Connie Buscemi, spokesperson for the Chicago Department of Planning of Development, confirmed that plans for a residential highrise on the site have already been filed with the planning department, via an amendment to the Central Station planned development. The latest project is currently under review by DPD, Buscemi added.

Meanwhile, Moran is already drumming up support for the existing building at 14th and Michigan, which was was constructed in 1909 by the firm of Jenney, Mundie and Jensen. The building is orange-rated on the city’s Historic Resources Survey, which signifies that it possesses potentially significant architecture or historical features.

According to Moran, the architectural firm was founded by William LeBaron Jenney, who helped design the city’s first skyscraper, the Home Insurance building. Moran added that most surviving buildings constructed by Jenney, Mundie and Jensen enjoy landmark status.

He talked up the currently dirty white glazed terra cotta facade—which he said would look even better if it was cleaned—and said the building is definitely worth saving.

"The building is an attractive building," Moran said. "That can’t be questioned by anyone who’s seen it."

And while Moran said he is pleased with much of the new highrises in Central Station, he doesn’t want to see what he views as an important structure torn down. The building, Moran argues, complements the Chicago Firehouse Restaurant building, located across the street at 1401 S. Michigan Avenue, and is part of a pleasing low-rise stretch of South Michigan.

"It’s not an old building sitting by its lonesome in a forest of modern buildings," Moran said.

The 1355 S. Michigan Avenue building, Moran argued, is emblematic of the aging but aesthetically pleasing South Loop buildings that helped spur the area’s residential turnaround. He said the continued razing of such buildings would ultimately harm the development of the South Loop, and create a sterile environment.

"I love high-rises coming on Central Station, but not on this site," Moran said. "It’s the old buildings that bring character to the neighborhood. We shouldn’t kill the goose that laid the golden egg. ...The Central station development has been a great thing. The real balance you have to strike is between sterilizing a neighborhood and energizing a neighborhood."

Officials from The Enterprise Company and Central Station Development are expected to unveil the plan at a meeting of the Greater South Loop Association, scheduled for 9 a.m. Saturday, July 16 at the First District police headquarters, 1718 S. State.

SOMEONE NEEDS TO ATTEND THAT MEETING IF POSSIBLE, AND TAKE YOUR CAMERA...

The Urban Politician

July 14th, 2005, 07:42 PM

BVictor1

July 16th, 2005, 11:06 PM

Developer to buy CBS studio site
Sale will help finance WBBM's move to Block 37 in the Loop

By Thomas A. Corfman
Tribune staff reporter
Published July 16, 2005

WBBM-Ch. 2 has a letter of intent to sell to a developer the station's historic Streeterville studios, the site of the first-ever televised presidential debate, between John F. Kennedy and Richard M. Nixon.

The developer, Golub & Co., would tear down the antiquated structure to make way for a residential development after the station moves to a new facility on Block 37 in late 2007, sources said.

Meanwhile, in another sign that the massive Loop mixed-use project is moving forward, Mills Corp., the master developer of Block 37, is putting up for sale the rights to develop the residential and hotel portions of the proposed complex.

The demolition of the studios at 630 N. McClurg Ct. has been expected since 2002, when the CBS-owned station hired real estate firm Staubach Co. to explore options.

Built in 1924 as a horse stable, the three-story structure's physical condition has deteriorated in recent years despite efforts to maintain it.

Proceeds from the sale would help finance WBBM's move to Block 37, where Mills is developing a state-of-the-art facility.

The station and Chicago-based Golub have reached a non-binding agreement on the essential terms of the deal, sources said. The price is in the upper $20 million range for the 66,490-square-foot site.

The deal is expected to be finalized within two weeks, sources said.

A WBBM spokeswoman said a sales contract had not been signed and declined to comment further.

Michael Newman, Golub's president and chief executive, could not be reached for comment.

The deal has some risk for Golub, which must predict what the residential market will be like in more than five years, when the first phase of any development on the site would likely be completed. Currently, the area is undergoing a dramatic building boom.

But a downturn in the market could further delay the start of construction, increasing carrying costs and eating into potential profits.

"There are always risks," said Gail Lissner, vice president with Chicago consulting firm Appraisal Research Counselors.

But Golub, founded in 1960, is an experienced high-rise developer, currently building a 49-story apartment building at 345 E. Ohio St., the first stage of a two-tower complex.

WBBM has been broadcasting from its current facility since 1956, after buying the property for nearly $1.3 million.

Before its current use, the building had been converted into an ice-skating rink and bowling alley called Chicago Arena.

The structure's historical high point was undoubtedly 1960, when the first Kennedy-Nixon debate, considered a pivotal moment in American politics, was held in Studio One.

WBBM traces its history to WBKB, Chicago's first television station, which began broadcasting on Channel 4 in 1946.

In 1953, CBS bought WBKB from movie theater chain Balaban & Katz, a subsidiary of Paramount Pictures, and changed the station's call letters. Ironically, Paramount was acquired in 1996 by New York media conglomerate Viacom Inc., which acquired CBS two years ago in a $45 billion deal.

On Block 37, WBBM's studios would be located on the northeast corner of Dearborn and Washington Streets, across from the Picasso sculpture in Daley Center Plaza.

The station's studios and offices would be part of Block 37's first phase, which also includes a five-story shopping center base.

Mills, a retail specialist, has hired the Chicago office of real estate firm Holliday Fenoglio Fowler LP to market the rights to build the later phases of the project, a spokeswoman for the Virginia real estate company confirmed.

Those later stages would be a hotel tower of at least 135,000 total square feet, to be located at Dearborn and Randolph Streets, and a residential tower of at least 150,000 total square feet, to be located at Randolph and State.

But the parking garage planned for the project accommodates no more than 300 cars, which some observers say could diminish the value.

An unusual aspect of Mills' agreement with the Daley administration allows the city to share in the proceeds from the sales of the residential and hotel development rights, based on the price.

----------

tcorfman@tribune.com

BVictor1

July 16th, 2005, 11:11 PM

I got a decent color rendering of The Columbian.

https://extranet.emporis.com/files/transfer/6/2005/07/380162.jpg

BVictor1

July 16th, 2005, 11:33 PM

July 16, 2005
Hotel rates rise sharply
Signs of pickup in convention business accompany price hikes

By Kristina Buchthal
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Hotel room prices are rising again in Chicago amid the first signs of a pickup in the city's convention business since the post-Sept. 11 travel slump.
According to the most recent figures available from the Chicago Convention and Tourism Bureau, room rates in downtown Chicago climbed $23 to an average of $183.70 in May, up 14% from May 2004, when hotel prices for the city's third-biggest convention month hit their lowest level in nearly a decade. The average rate is the highest ever for May, the biggest jump since rates collapsed in 2001 and the fifth straight monthly rise.

"It's been a buyers' market for three years and that is definitely no longer the case," says Greg Saunders, managing director at the Hyatt Regency Chicago.
Occupancy rates at downtown hotels started recovering more than a year ago from 2002's rock-bottom levels (Crain's, Aug. 2). In May, occupancy averaged 79.2%, up from 75.3% last May and 68.2% in May 2002.

Despite increased demand, low prices lingered in part because the city's hotels are so dependent on conventions, which negotiate room prices years in advance and locked in the lower rates of 2002 and 2003, says Ted Mandigo, an Elmhurst-based hotel consultant. Group business accounts for about 55% of downtown hotel bookings, Mr. Mandigo says.

The city's convention industry has suffered not only from the post-Sept. 11 downturn but also from the loss of large gatherings, such as the splintered National Hardware Show, to other cities. But recent data from the Tourism Bureau suggests attendance at the shows that remain may rise next year.

As of April, convention visitors had booked 1.9 million hotel rooms for 2006. That's well ahead of the 1.8 million rooms booked by April 1999 for conventions in 2000, when conventioneers purchased a record 2.1 million hotel rooms in Chicago.

For now, individual business and leisure travelers are bearing the brunt of the price hikes.

At Starwood Hotels & Resorts Worldwide Inc.'s five downtown hotels — a Sheraton, two Westins and two Ws — convention room rates were essentially flat at $191 in May, while individual travelers' rates jumped 21% from the previous May to $198.35, says Michael Smith, Starwood's director of sales and marketing in Chicago. In 2002, room rates were $190.00 for group business, and $166.00 for individual travelers.

"The commercial business traveler, he's paying a lot more than a year ago," says Mr. Smith, who expects convention room rates to rise 5% to 7% during 2006.

©2005 by Crain Communications Inc.

Chi_Coruscant

July 17th, 2005, 02:14 PM

Evolution of a block
On West Washington Street, a microcosm of downtown Chicago's transformation
July 18, 2005
By Daniel Rome Levine (Crain's Chicago)

In the 1980s, John Castro used to stop in the Illinois Bell Telephone building at 212 W. Washington St. to pay the family's phone bill. Now he works there as the doorman of the building, which was converted to condos in 1999. Photo: Erik Unger

John Castro has been visiting 212 W. Washington St. for 20 years. In the 1980s, he used to stop in the Illinois Bell Telephone building to drop off his family's phone bill payments.

Today he works there, opening doors for residents of the 21-story condominium building.

Mr. Castro, 28, has been an eyewitness to a microcosm of the transformation of downtown Chicago, which in the past 10 years has seen a massive influx of homeowners, changing the dynamics of the neighborhood and dramatically altering the commercial real estate landscape.

Mr. Castro remembers that stretch of Washington, between Franklin and Wells streets, as rundown and lifeless. Dominated by the phone company's sprawling office on one side and the historic Hotel LaSalle parking garage on the other, "it felt cold," Mr. Castro recalls.

Looking up and down the block today, Mr. Castro sees a dry cleaner, a convenience store and a corner sandwich shop. An estimated 800 people now live there. "It feels more like a neighborhood," he says.

'NO MAN'S LAND'

The Washington Street block's renovation is a prime example of how the "western end of the Loop changed very radically at the end of the 20th century," says Tim Samuelson, Chicago's cultural historian.

The biggest change: converting the old Illinois Bell building, which occupied the entire north side of the street with 700,000 square feet of office space, to condominiums in 1999.

Over the course of two years, from 1997 to 1998, President Cal Boender of Elmhurst-based Historic Homes bought for $13 million from SBC Communications Inc. the two buildings that made up the phone company offices, 208 and 212 W. Washington St., and an adjacent vacant parcel.

He sank $35 million into converting 212 W. Washington into condos and sold 208 W. Washington to another developer, Concord Homes. He built a parking garage on the vacant parcel.

Robert Mollers, a retired Chicago school teacher, was among the first to move into one of the 183 units at 212 W. Washington in March 2000. "It was a no man's land," says Mr. Mollers, who recalls walking several blocks to Union Station every Sunday just to buy a newspaper.

He didn't have to make the trek for long. Soon after he moved in, a 7-Eleven opened in the landmark Washington Block building across the street, replacing a Chinese restaurant.

In the past five years, 7-Eleven has stocked up on items such as frozen dinners, beer and wine to meet the demands of the local residents. Its weekend business has doubled.

'NEW PEOPLE EVERY DAY'

On the residential side, property values at 212 W. Washington have increased 58% since 1999; three-bedroom, 1,500-square-foot condos that sold for $300,000 six years ago are now selling for as much as $472,500.

In November 2001, CVS Corp. leased 7,280 square feet directly across from the 7-Eleven. A dry cleaner, a Dunkin' Donuts and two sandwich shops have since followed.

Amyn Aladin, manager of the Dunkin' Donuts that bought a 1,000-square-foot space on the block three months ago, says business has been slow but is improving. "We're getting new people every day," he says.

Across the street, Martin Stern of U.S. Equities Realty is trying to sell the 22,000-square-foot lot that used to be the Hotel LaSalle garage. The building, reputed to be the country's first multilevel parking garage, was recently demolished. A condo building is a possibility there, too, Mr. Stern says.

"The whole block is going to feel better, as will the entire east-west corridor to City Hall," he says. "West Washington Street is not going to be a second stepchild anymore."

©2005 by Crain Communications Inc.

BVictor1

July 17th, 2005, 02:15 PM

High-speed high-rises stagger Streeterville

By Kathy Bergen and John Handley
Tribune staff reporters
Published July 17, 2005

Streeterville residents are not a naive bunch.

They moved into their condos and apartments knowing they would share their turf with hordes of tourists bound for Michigan Avenue or Navy Pier or Millennium Park. And they knew that the patchwork of surface parking lots dotting the landscape would eventually give way to more high-rises, and that those new skyscrapers, ranging from 26 to 65 stories, would block some spectacular views.

Still, many are reeling at the sheer volume of high-rise residential development storming their way at the southern end of the neighborhood. Within the next five years, another 13 high-rises will go up in the area wedged between Michigan Avenue and the lake, and Chicago Avenue and the river. That will boost the supply of apartments and condominiums by more than a third, to 12,523 units.

The building boom could bring another 5,250 residents to a neighborhood already housing 13,535, according to some estimates.

"Streeterville had been a totally overlooked sub-market, but now it's hot," said Gail Lissner, vice president of Appraisal Research Counselors.

"The new wave of Streeterville development has started," said Daniel McLean, president of MCL Cos., which already has built three residential high-rises and plans two more. "We're halfway."

The speed of change is making some residents sweat.

"It seems kind of overwhelming," said Deborah Mitchell, a marketing consultant who owns a one-bedroom condo on East Ohio. "The numbers I've heard seem staggering."

The concerns weighing on the neighborhood are many. What will happen to already-congested traffic, to panoramic views, to property values? What will happen to the character of the neighborhood, to the way it feels to walk down the street?

"Most people who live in the area find this a good place to live," said James Houston, president of the Streeterville Organization for Active Residents (SOAR). "Our concern is that if we get excessive density and begin to approach the feel of Midtown Manhattan, we may begin to see a decline in interest in living in this area. I don't think we're there yet, but we need to consider this as development proceeds in the future."

Not everyone wary

"Parking lots are not the best use of space," said Connie Buscemi, a spokeswoman for the city's Department of Planning and Development. "This is a high-density corridor, and people want to live there because there is so much to do."

An increase in residents should spell big business for the stores on North Michigan Avenue. Streeterville residents "shop locally, and that's part of the reason North Michigan Avenue has been a phenomenal success," said John Maxson, president and chief executive of the Greater North Michigan Avenue Association.

The area was zoned for high-rise development 20 years ago, noted Ald. Burton Natarus (42nd).

"We've been struggling to negotiate with developers, on a volunteer basis, to reduce the size and alter the projects," Natarus said. "Also, we've been working with SOAR on their neighborhood plan, which does not have the effect of law but gives ideas on how to change."

The plan urges developers to preserve historic elements, maximize street-level natural light, use architectural screening on above-ground parking, and include landscaped areas in new developments, among other things.

Still, random chats with neighborhood residents indicate many harbor concerns, the biggest ones centering on traffic.

On summer evenings, traffic can gel into gridlock, especially when there are special events in the area, said Stephen Daniels, a legal researcher who owns a condo on East Ohio as a second family home.

On such nights, "traffic-wise, it's almost unbearable," he said. "And with what's on the books, it will only increase."

The city is trying to be proactive on the issue, said Brian Steele, a spokesman for the Department of Transportation.

For instance, the city is considering a $4 million program to coordinate the timing of all traffic signals in Streeterville so they will work in sequences tailored to meet the traffic flow needs at peak times. The program is expected to go into effect next year.

Within Streeterville, there is no room to build new roads or expand existing ones, "so our goal is to manage the capacity we have," Steele said.

The city also works with developers to come up with ways to prevent traffic problems, he said.

Views indefinite

Then there's the issue of views.

Many residents understand that the views they've enjoyed will not last forever.

"If I really wanted a view of the lake, I would have paid for a place with a lake view," Daniels said. "I can't complain because I'm not paying a premium for a view."

Others are less sanguine.

Law student Shaun Raad and his girlfriend, attorney Amanda Feltman, would consider moving from their 35th-floor one-bedroom apartment on East Ohio if a planned development to the east should block their view of Navy Pier, Raad said.

The couple also has grown attached to a small, temporary park about a block from their home, where they take their 10-week-old golden retriever, Wrigley.

"It's beautiful and we've met tons of people here," Raad said as he walked Wrigley through the landscaped patch between Illinois Street and Grand Avenue, near Peshtigo Court.

"We've been told they are going to put up condos here," he said.

In fact, it's something of a neighborhood joke, he said.

"People say, `That's what we need around here. More condos,'" he said. "You can't look around without seeing more condo ads."

Two residential high-rises are planned for the site, but a permanent park will be built between the new buildings, the city said.

The volume of units coming on the market has other residents concerned.

"Basic economics tell you if there is oversupply, it will depress prices," said Mitchell, the marketing consultant who lives on East Ohio. She also is an adjunct marketing professor at the University of Chicago.

Others say there will be sufficient demand since the build-up will be gradual.

"I do not see a glut with new buildings half-empty," said Gail Spreen, who is vice president of the Streeterville residents organization and who sells and rents residential properties in the area.

Boomers drive boom

Real estate analyst Steven Friedman, president of S.B. Friedman Co., said he does not expect prices to drop as a result of the building boom.

"Strong Baby Boomer demographics are underlying the strength of the downtown housing market," he said.

"Boomers are emptying out of the suburbs and moving downtown. They especially want larger and higher-quality units," Friedman said.

The Streeterville organization does have some concerns about aesthetics.

The group is encouraging developers "to create a contiguous feel, from one building to the next and from one block to the next, and to create as much green space as possible," said Spreen, who is chairman of the group's Neighbors Action Task Force, which works with developers.

The group also is advocating for loading docks with adequate space, underground parking, and street-level facades with windows, and in some cases, retail.

"We really don't want this to be like a concrete jungle," said Spreen.

So far, the group has found developers responsive, she said.

"I feel very optimistic," she said. "I think the developers appreciate what a great location this is, and that the projects will be there for the long-term."

- - -

Slices of Streeterville history

In 1834, what is now St. Clair Street was the shore of Lake Michigan and aptly named Sand Street.

In 1886, "Capt." George Wellington Streeter ran his steamboat, Reutan, aground on a sandbar between what is now Superior Street and Chicago Avenue. "Cap" Streeter filled in the area between the shore and his vessel with Chicago Fire debris, calling his settlement the "District of Lake Michigan."

By 1889, Streeter and his common-law wife, Maria, were evicted from the land only to return. By the following year, combat opened between police and residents of the District, which had become home to prostitutes, gamblers, drunks and assorted other undesirables.

The early 1900s saw an influx of factories and warehouses into the south end of the area. The North Pier Terminal stands as a reminder of the neighborhood's past.

The 1920 opening of the Michigan Avenue Bridge over the Chicago River created the prime real estate now known as Streeterville.

Though Streeter died in 1921, his nieces and nephews continued to lay claim to the land until a court ruling awarded the area to Chicago Title and Trust.

Streeter's home, by the way, was on the site now occupied by the John Hancock Center.Sources: Chicago Public Library, Chicago Tribune, Encyclopedia of Chicago, RedEye, Streeterville Organization of Active Residents, Wikipedia

Sources: Chicago Public Library, Chicago Tribune, Encyclopedia of Chicago, RedEye, Streeterville Organization of Active Residents, Wikipedia

- - -

No small, no slow plans

Real estate developers have big plans to transform Chicago's Streeterville neighborhood into a high-rise haven by erecting numerous condos that will alter the city skyline and increase the population density in the area.

NAME DEVELOPER STORIES UNITS PRICE PER CONDO UNIT
150 E. Ontario Monaco Development 51 160 N/A
345 E. Ohio Golub & Co. 49, 51 901 N/A
550 N. St. Clair Sutherland 26 112 From high $200,000s to
Pearsall Development nearly $2 million
Avenue East Residential Homes 27 133 From mid-$200,000s to
of America $1 million plus
CityFront Plaza Centrum Properties 40,65,31 281* From mid-$300,000s*
600 N. Fairbanks Urban R2 Development 41 224 From $310,000;
penthouses,
$1.6 million to
$1.9 million
600 N. Lake Shore Belgravia Group and 40, 46 400 From high $300,000s
Sandz Development to $1.7 million
Park View MCL 47 270 From $425,900
Name unknown MCL 25 210 N/A
Name unknown LR Development N/A N/A N/A
*Units and prices for 31-story building only
EXISTING LANDMARKS (stories)
John Hancock Center (100)
Water Tower Place (74)
Tribune Tower (34)
NBC Tower (37)
Lake Point Tower (70)
Sources: The developers
Chicago Tribune/Van Tsui and Keith Claxton

----------

kbergen@tribune.com

jhandley@tribune.com

Chi_Coruscant

July 17th, 2005, 04:52 PM

In South Loop, it's condo or no-go
Developers face little choice; office would be 'suicide'
July 18, 2005
By H. Lee Murphy (Chicago Crain's)

Amid a wave of new condominium development in the South Loop, developer William Warman is embarking on his second project in a single block after considering — and then rejecting — commercial uses for the parcel. Photo: Andreas Larsson

Like the South Loop buildings he owns, Jerry Karp has gone condo.

The Chicago developer helped spark a condo boom on South Wabash Street in 2000, but only after a previous attempt at apartment development failed on the same spot.

The road to Mr. Karp's conversion begins in 1985, when he and his partners acquired virtually all the property on an entire city block to the east of South State between 8th and 9th streets for about $5 million. They spent $21 million to convert the 2,000-room YMCA on South Wabash into a 292-unit apartment building. But the apartments ultimately failed to generate enough rent to cover Mr. Karp's debt service. In 1999, his lenders foreclosed on the building.

Undaunted, Mr. Karp raised $20 million under a new partnership called Wydoe Development LLC and bought the building again in 2000, this time determined to find the right use. He and his new partners at Wydoe first considered converting it to office space, but a quick glance at the numbers turned him against it.

"Offices would have involved spending another $40 (million) to $50 million to gut the place and make it over again," Mr. Karp says. "We might have gotten office rents of $20 a foot on a net basis, but it would probably have taken two to three years to lease up."

Wydoe wouldn't likely make a profit at that rate. And Mr. Karp didn't think there was enough demand to fill a 400,000-square-foot office building.

"Office would have been suicide for us," he says.

ONE CHOICE: CONDOS

So, Mr. Karp wondered, what about turning the old Y into a hotel? But that, too, was an obvious non-starter. "We would have had to add new walls and plumbing and heating and air-conditioning zones," Mr. Karp says. "Plus, when we were making our decisions in 1999 the hotel market was headed down."

That left one choice: condos. Wydoe set about converting the old rentals into condo units, first offering them to the occupying renters.

A good choice, as it turns out. All 292 units were sold out within 18 months, with a third of the renters buying their units. And while skeptics thought Wydoe would be lucky to get condo buyers to pay $120 a square foot for residential space, the average sale price came in close to $150 a square foot. Four years later those condos are reselling for $250 a square foot. For a building it had bought back at $20 million, Wydoe realized nearly $50 million in condo sales. Take into account remodeling, marketing costs and sales commissions and Mr. Karp figures Wydoe earned a 25% profit on its investment in less than three years.

The successful conversion of that one building set off a condo boom on the block. Later in 2000, Wydoe sold a neighboring parcel, at 8th Street and Wabash Avenue, to developer William Warman, who promptly built condos there as well.

Mr. Warman's project, a 35-story, 220-unit building christened the Tower Residences of 41 E. 8th Street, nearly sold out by the time construction finished in late 2002. But profits didn't match those at the YMCA project, completed roughly a year earlier.

Mr. Warman says land, construction and marketing costs came to about $62 million for the Tower Residences. (Construction alone cost $50 million.) Condo sales totaled a little more than $67 million, leaving Mr. Warman with a profit margin below 10% — a less-than-stellar return on a downtown development.

Mr. Warman, now operating Warman Development & Design Ltd., is now planning another development at 8 E. 9th.

And while he doesn't expect returns to be much better on the new project, to be called Astoria Towers Residences & Spa, Mr. Warman says these days a developer in that part of the South Loop has little choice.

Like Mr. Karp, he considered commercial uses for the parcel. The two developers discussed a retail center for their new residents but quickly surmised that they couldn't compete with Roosevelt Road, three blocks south, where land and parking were more plentiful. Chain stores like Walgreens, Target and Jewel have already built stores on Roosevelt.

"Retailers want vehicle access, and that's harder on a block like ours," Mr. Warman concedes. "You have to choose what people tell you they want on your site."

SLIM MARGINS FOR RENTAL PROJECTS

Real estate watchers say the commercial market isn't likely to catch up with the condo market as long as interest rates stay low.

"Rental projects carry very slim margins in most places these days," says Gail Lissner, a vice-president with Appraisal Research Counselors in Chicago, a consulting firm. "You buy a site for apartments and a site for condos and the costs are the same, but the returns are substantially better for the condo developer."

As for the office option, Ms. Lissner notes that towers in the middle of the Loop are struggling to find tenants. Put an office high-rise eight blocks south of there and "you've probably got a real challenge in finding tenants."

Mr. Karp hopes to replicate the success of the old Y with Wydoe's next project, down the street: One Place Condominiums, at 8th and State.

This multi-use facility will feature a $40-million parking garage for 400 cars flanked by 67,000 square feet of commercial space (most of which will be leased by an X-Sports Fitness Center) and 97 condo units. More than half of the units are already reserved by willing buyers at a price approaching $300,000.

BVictor1

July 18th, 2005, 01:16 AM

Here is a graphic to go along with the Streeterville article that I posted.

http://www.chicagotribune.com/media/graphic/2005-07/18521677.jpg

northsidesoxfan

July 18th, 2005, 03:36 AM

LA1

July 18th, 2005, 06:06 AM

Its hard to judge where Streeterville begins. The residential area north of Chicago, east of Michigan is considered by many to be "Gold Coast".
Then there is the Northwestern Campus, which really isn't part of Streeterville to me. The campus is almost all Northwestern buildings or hospitals-not a neighborhood. I think I would call the land south of Ontario east of Michigan to be Streeterville. To me, River East development is just part of Streeterville. Just like like there are different areas of River North.
North Bridge is a area of River North. So is Kingsbury Park. Hell, I am know hearing about a neighborhood called "Cathedral District" near State and Huron. But its all a part of River North...until you get to Chicago, and it all becomes Gold Coast. Its may sound confusing, but I am sure many people have different opinons.

Its do different than Lower Manhattan having several different neighborhood names. Once these areas of Chicago become more residential and take on a more neighborhood feel, a new neighborhood name will pop up.

BVictor1

July 18th, 2005, 07:54 AM

Frumie

July 18th, 2005, 06:10 PM

^Thanks for posting the graphic. I think most of the new construction isn't really in "Streeterville." Historic Streetville is more like the area North of Ontario or Huron. It seems to me that the new construction is actually creating a new neighborhood West of Navy Pier. Streeterville was alway residential. This area used to be industrial.

This view is consistent with the Streeterville Chamber of Commerce map as seen in MapQuest.

Whoops! I just checked out some other Streeterville sites and their maps, and they seem to be all over the ballpark. Perhaps it's a function of the sales pitch?

geoff_diamond

July 20th, 2005, 06:05 PM

I have to agree with Butler's description of S'ville. Pretty much everything north of the river and east of Michigan is the 'Ville as far as I'm concerned.

spyguy

July 20th, 2005, 06:48 PM

---

Chicago Shawn

July 22nd, 2005, 01:26 AM

MoMo and 600 N. Fairbanks were both approved by the Chicago Plan Commision today. Alderman Nataruas and Stone were quite pleased with the "innovative architecture" presented in front of them today. Also approved was the Klee Building redevelopment and addition in Portage Park, which I spoke in favor of. That project will include the construction of a 5 story mixed-use building with underground parking in addition to the rehab of the art-deco Klee Department Store at six corners.

An interesting note was mentioned durring MoMo's presentation. Smithfield has been in talks with the Chicago Theater which uses the adjacent alleys for trucks containg stage sets, costumes and whatnot, and thus the tower has been designed as a seperate structure from the base. This allows for the staging of construction materials and equipmenton the site itself durring tower construction, with the construction of the base going forward latter. So, we could indeed perhaps watch the tower rise from its 9 story legs before the base surrounding them is constructed. It would be like watching a bridge going up on that lot suspended 90 feet in the air. How cool is that? :cool:
Also, Victor was able to get a height figure from one of Jahn's Architects for 600 N. Fairbanks, it will be 451' (~450'-11") tall.

Chicago Shawn

July 22nd, 2005, 01:27 AM

Oh yeah and here is a shocker, SOAR actually supports the 600 Fairbanks tower, thier only complaint was with the ground level landscaping being too sparse.

BVictor1

July 22nd, 2005, 11:31 AM

7/20/2005 10:00:00 PM Email this article • Print this article
Mixed reviews for S. Michigan tower
Some fear it compromises South Loop’s character

By HAYDN BUSH, Staff Writer

Photo courtesy of Michael Moran
1355 S. Michigan.

A Central Station plan for a 30-story condo tower at 1355 S. Michigan got a mixed reception during its unveiling in front of the Greater South Loop Association July 16, with some residents wondering if the neighborhood needed another modern high-rise. The building, which would be built on the site of a 90-year-old, terra-cotta-clad building, would have 260 apartment units.

While few spoke out in favor of saving the structure as it is currently composed, GSLA President Jeffery Key said residents were worried about the "loss of character" with the demolition of the existing building and construction of a new high-rise. And several South Loop residents said they were concerned that the moderately scaled neighborhood they moved into would soon be dominated by staid condo towers.

Central Station founder and co-chairman Gerald Fogelson, though, said that while the city is promoting eclectic mix and height in the area south of 14th Street, the area between 14th Street and Roosevelt Road will soon play home to several new high-rises, including a handful developed by Central Station.

"This is consistent with the Central Area Plan," Fogelson said, adding that the city is pushing more moderately scaled development starting with the Chicago Firehouse restaurant on the other side of 14th Street from the proposed tower.

Also at issue is whether the existing building, which currently houses the Strictly Business nightclub, can be preserved. The building was constructed in 1909 by Jenney, Mundie and Jensen, the same firm that designed the now-demolished Home Insurance Building, considered the city’s first modern skyscraper . Preservation Chicago Vice President Mike Moran said the building was originally used as a showroom for the Kenmore automobile company, and was once adjacent to two other automobile showrooms in what he termed "the noncontiguous Motor Row District."

"It’s a no-brainer that the facade should be saved," Moran said.

At first, Central Station President Tim Desmond said, the company had every intention of saving the existing building. After purchasing it more than two years ago, Desmond said, Central Station discussed ways of saving the building with the city Department of Planning and Development, before deciding it wasn’t possible.

"We couldn’t make it work financially," Desmond said. "...We spent all of 2003 with DPD trying to reuse the building."

Desmond said Central Station also hired local architectural consultant Phillip Krone to work with Daniel Bluestone, dean of architecture at the University of Virginia, and review the historical significance of the building. Desmond said the pair discovered that the building was originally in the middle of the block, when 14th Street was narrower. The southern wall includes brick facing that once fronted another building, Desmond said.

"That diminished it as a historic building," Desmond said.

Desmond added that while the building was constructed by Jenney, Mundie and Jensen, firm founder William Le Baron Jenney, considered the father of the American skyscraper, had died three years earlier. And Fogelson said the building was badly dilapidated, and had been nearly condemned by the city before Central Station purchased it.

"This building has been a blight on the neighborhood," Fogelson said.

Moran, though, argued that building had stood for 90 years, and noted that Jenney, Mundie and Jensen built several other significant buildings after Jenney’s death. He said later that the city often uses condemnation proceedings as a ploy against inattentive owners, and that many nearly condemned building are eventually rehabbed.

At least one preservation concept did attract the interest of Desmond and Fogelson. Laughing Iguana owner Marifran Carlson asked the developers if the building’s terra cotta could be used in some form in the building’s interior, an idea they said they would look into.

"Preserving the materials is an excellent idea," Desmond said, adding that he thought the terra cotta facade could be integrated into a doorway over an elevator.

The tower’s condominiums would be sold for roughly $310 per square foot. In addition, 10,000 square feet of retail space would be developed on the ground floor.

BVictor1

July 22nd, 2005, 07:25 PM

$100M Condo Tower Replaces Streeterville Parking Lot
By Mark Ruda
Last updated: July 21, 2005 09:52pm

(To read more on the multifamily market, click here.)

CHICAGO-Developer Gary Rosenberg will build 227 condominiums on a prime Streeterville site, now used as a parking lot. More than 50 reservations are in, Rosenberg tells GlobeSt.com, for the 41-story building that will rise at 600 N. Fairbanks Ct., a project expected to cost more than $100 million.

The 29,044-sf site has remained relatively fallow after environmental problems were discovered after a gasoline station ceased operations, says 42nd Ward Alderman Burton Natarus. In addition, the design by Murphy/Jahn Architects preserves a three-story retail building on the north end of the site, he adds. “It’s not a landmark building, but they’re saving a significant building,” says Natarus, noting it housed the Chez Paree night club.

The project received an endorsement Thursday from the plan commission, which is recommending the city council allow Rosenberg’s 600 N. Fairbanks LLC build a 378,000-sf tower, 8% more than allowed under current zoning. Rosenberg will get the additional density by making a $580,880 contribution to the city’s affordable housing opportunity fund, according to the department of planning and development.

Prices for the 119 one-bedroom units will be in “the low-300 to mid-400” range, Rosenberg says. The 77 two-bedrooms are tentatively set to sell for prices in the “high 400s” to $600,000, he adds, while the 31 three-bedrooms will range from the “mid-700” to $900,000 range. “We’ve started advertising, and already we’ve had a tremendous response,” Rosenberg tells GlobeSt.com.

http://img313.imageshack.us/img313/9232/p10007955ds.jpg

richardsonhomebuyers

July 22nd, 2005, 09:12 PM

Thats a pretty nice looking building for this area.

Has anyone heard of these two buildings yet? The Boulevard Hotel & Condos? This one looks like it is going up next to 2 pru. Very tall looking and nice.

And also the Legacy @ Millennium park. 60 E monroe. Nice looking building also very tall.

spyguy

July 22nd, 2005, 09:18 PM

This is the Mandarin Oriental building, right?

Still look like this:
http://skyscraperpage.com/gallery/data/554/6324boulevard_east_towers_3.jpg
?

The Urban Politician

July 23rd, 2005, 02:54 AM

This is the Mandarin Oriental building, right?

Still look like this:
http://skyscraperpage.com/gallery/data/554/6324boulevard_east_towers_3.jpg
?

^No, dude--old rendering

BVictor1

July 23rd, 2005, 06:46 AM

^No, dude--old rendering

Yes, that is an old rendering of Boulevard Tower East, but if you go the the Mandarin Oriental website, this the same rendering that they are using for their proposed tower.

The Urban Politician

July 23rd, 2005, 09:14 AM

Got Concord Homes' brochure about Library Tower in the mail. I got a huge rendering but I don't have a scanner.

As we all know, it's obviously very conservative and meant to fit into Printer's Row. But it looks like a solid development, and it appears that the entire building will be clad in dark brick.

I like dark brick, they need to use that more than that lighter brick stuff.

Anyway, it will fill in a nice hole in the south State St. streetwall. It should also be a good step in revitalizing the rather vacant Congress Avenue corridor

ChicagoLover

July 23rd, 2005, 12:23 PM

My apologies if this has already been posted. Yet ANOTHER hotel condo (conversion), this time in the former Executive House on East Wacker. I was surprised to learn that this building was ORIGINALLY condos. So its condos, then hotel, now hotel-condos. Hah. How often are condo building converted into hotels? I doubt that would ever happen today.

Also, the article references Hotel Blake at 500 South Dearborn. I"m not familiar with this one. This project must involve renovation of an existing building, not new construction, yes? From pictures, I see this building is adjacent to the former Hyatt at Printers Row?

July 20, 2005
Falor opening Hotel 71 units in August
by Katherine Sands
The Falor Companies plans to begin selling hotel condos in August at what is now Hotel 71, a boutique riverfront hotel at 71 E. Wacker Drive, on the edge of the Loop and the Magnificent Mile. The project will be Falor’s third hotel condo development in Chicago, where the new form of hybrid housing has quickly become popular.

Sales at Falor’s two other hotel condo projects, the Aldens and Hotel Blake, both in the South Loop, are on hold during construction, according to Falor Companies CEO Robert Falor.

Milton Schwartz & Associates designed the 40-story Hotel 71 in 1958 as the Executive House, a condominium building with 454 units, which is why guest rooms are large, starting at 400 square feet.

The hotel recently underwent a major renovation and will get another $20 million rehab as part of the conversion, including the addition of an 8,000-square-foot spa. Prices on most units will range from the $300s to about $700,000, according to Falor, and six penthouses will average about $1.3 million. Falor said that with the company of a former Ritz-Carlton CEO running the new hotel, buyers would receive a high level of service and luxury at a reasonable price.

“This is a really neat project because you’re on the river and you’re directly across from Trump (International Hotel & Tower) with half the price point,” Falor said.

Meanwhile, sales at Falor’s first Chicago hotel condo development, Hotel Blake, 500 S. Dearborn St., have been put on hold. The 42 units that are still available have been taken off the market until construction on the 162-unit building has progressed.

The strategy, according to Falor, is to allow buyers to see the quality of the building when construction is further along, before they purchase. Units at Hotel Blake are priced from the $300s to the $570s, and sales are scheduled to resume this fall, with renovation planned for completion in November.

The Aldens, another Falor project, at 202 S. State St., also is suspending sales during construction. About 55 percent of the 98 hotel condo units have been sold, and the remaining suites are priced from the $250s to the $470s. Chicago-based Sudler had been marketing units at Hotel Blake and the Aldens hotel, but at press time, the Falor Companies had not yet announced the sales and marketing agent on any of the three properties.

richardsonhomebuyers

July 23rd, 2005, 10:05 PM

That may be an old rendering, but from what I saw in the past couple days that is what the building will look like.

geoff_diamond

July 23rd, 2005, 11:05 PM

Looks like the sale of the old Toys R' Us on State has finally been completed. I noticed a new sign today depicting the conversion of the building into an Office Depot and an Urban Outfitters (as was expected from previous articles about the building).

Now Devyn can just go downstairs to get all his sassy new threads :)

Sorry for the abhorrent quality of the picture, but, just take it as a little proof that the sign does, in fact, exist.

http://img296.imageshack.us/img296/1522/officedepot015kl.jpg

Chi_Coruscant

July 25th, 2005, 04:46 AM

- edit

BVictor1

July 25th, 2005, 06:37 PM

Condos Set for Retail, Theater Crossroads
By Mark Ruda
Last updated: July 25, 2005 08:32am

CHICAGO-A city-owned site at 151 N. State St. is just south of the Chicago Theater, across Randolph Street from Marshall Field’s flagship store and on the opposite corner of the Mills Corp.’s “Block 37” redevelopment project. Tough competition for any building, not to mention a lackluster two-story structure with a ground-floor Walgreen’s outlet and office space upstairs.

However, Smithfield Properties has sold nearly 75% of the 208 condominiums in its proposed $82-million project, which includes 34,000 sf of retail space. Additionally, Booth Hansen’s steel and concrete design for the 32-story building, with a glass curtain wall and three-story hole, drew mostly praise Thursday, when the plan commission endorsed the project as well as a zoning change.

At 390,000 sf, the project is 27% larger than allowed by current zoning. However, Smithfield Properties received bonuses from the department of planning and development, says assistant commissioner Nori Greenstein, for putting all 68 parking spaces below grade, a $299,000 contribution to the city’s affordable housing fund and upper-level setbacks.

Principal Robert Buono tells GlobeSt.com Smithfield Properties hopes to begin construction in October, with completion scheduled for October 2007. The one-, two- and three-bedroom units range from $285,000 to $600,000, he adds, with pre-sales beginning in February.

Smithfield Properties agreed in 2003 to buy the 0.44-acre site for $9.58 million. However, the company’s original plan called for 124 condominiums and 66 rental units. Smithfield Properties was one of three developers to answer a request for proposals by the city. “You have no idea how many attempts have been made to improve this corner,” says 42nd Ward Alderman Burton Natarus, noting one plan called for a fruit market.

Construction will be staged on site, Buono says, rather than requiring the closing of State Street or disrupt events at the Chicago Theater. The four-story base will be built out last, he explains. Geneva Capital is financing the project, he says.

Chi_Coruscant

July 25th, 2005, 07:05 PM

^I am glad it is finally happening! Out, out, the ugly 2-storys building that house Walgreen!

Lower Wacker

July 29th, 2005, 09:46 AM

just wondering what the deal is on the new chicago bridges (info like renderings which i heard were out, and construction dates) especially the new lsd bridge in close proximity to the calatrava building. i hope the new lsd bridge will bring more modern architecture near calatravas tower. just looking for an update :)

geoff_diamond

July 30th, 2005, 06:58 PM

I haven't heard anything about this since the CAF had their whole show about the contest. Didn't know anything was happening?

geoff_diamond

July 30th, 2005, 07:48 PM

I strolled down to Central Station yesterday to snap a few progress-shots of Twelve55 South Michigan. I think this project hasn't gotten nearly the buzz it deserves since it is completely redefining the view to the south on Michigan.

http://img246.imageshack.us/img246/8594/1255013pm.jpg

http://img246.imageshack.us/img246/3089/1255022dc.jpg

this one was taken from the 38th floor of the Parke Millennium
http://img246.imageshack.us/img246/7216/1255032kj.jpg

And here's a random shot of Museum Tower. They've started to attach some of the facade to the structure.
http://img246.imageshack.us/img246/544/museumtower014gp.jpg

The Urban Politician

July 30th, 2005, 09:10 PM

Thanks, Geoff. I agree. 1255 S. Michigan, while not a world-class work of architecture, really is adding a distinct look to the southern skyline. I especially like the rounded edge on the east side of that building.

It will eventually be hidden by the taller buildings planned along Roosevelt, though

geoff_diamond

July 31st, 2005, 02:09 AM

Chi_Coruscant

July 31st, 2005, 06:07 AM

Buck plays TIF angle
Developer wants downtown district stretched to his site
August 01, 2005
By Alby Gallun

John Buck seeks to add acreage to a new Wacker project site.

John Buck is asking city officials to expand a downtown tax-increment financing district to include a site at Wacker Drive and Randolph Street where he wants to build an office high-rise.

The expansion would make Mr. Buck's development firm, John Buck Co., eligible for public subsidies for the project — his third on Wacker Drive in five years — at a time when the downtown office market is awash in unused space. Yet people familiar with the plan say money generated by expanding the tax-increment financing (TIF) district would be used to spruce up Randolph Street, not subsidize his planned high-rise.

Still, expanding the Central Loop TIF district to include Mr. Buck's project sounds like a bad idea to Gary Denenberg, senior vice-president and managing director at Chicago-based MB Real Estate Inc., a leasing agent for several large downtown office buildings.

"If the city wants to invest in beautifying the city of Chicago, I'm all for that, but I doubt that's what it's about," Mr. Denenberg says. Mr. Buck "is pressing this for the benefit of his own development, which is the last thing the city of Chicago needs."

Mr. Buck is courting tenants for his project, including law firm Jenner & Block LLP, which is "seriously considering" moving from IBM Plaza to the new tower, says Donald Resnick, the Jenner partner overseeing the firm's search for new offices.

To expand the building site, Mr. Buck is trying to buy a building at 312 N. Randolph St. next to the one at 155 N. Wacker Drive, which he bought earlier this year. Both would be torn down to make way for the new project.

"There's nothing final," says Steven A. Weiss, a member of the partnership that owns the Randolph Street building. "We've had discussions, but we've had discussions for a long time."

Real estate industry observers say enlarging the site would enable Mr. Buck to build a tower exceeding

1 million square feet, significantly larger than the 700,000 to 800,000 square feet he could squeeze onto the 155 N. Wacker parcel. That would put the building in the same size range as Buck's recent million-plus-square-foot projects at 1 N. Wacker and 111 S. Wacker.

A bigger site also would allow Mr. Buck to set the building back from neighboring high-rises, improving views from his new skyscraper.

"I've looked at the site; there are definitely some challenges on the view side" at 155 N. Wacker, says Todd Lippman, an executive vice-president in the Chicago office of Los Angeles-based broker CB Richard Ellis Inc.

A Buck Co. spokesman declines to comment, as does a spokeswomen for the city's Department of Planning and Development.

seeking improvements

But people familiar with the developer's plans say he does not intend to seek subsidies to help finance the construction of his project. Instead, he wants the TIF expanded to raise money to pay for streetscaping, parks and other improvements on Randolph Street. While the improvements would benefit the Buck project, they would also benefit other property owners on Randolph.

Mr. Buck spearheaded a similar effort that generated millions for streetscaping on Wacker Drive in the early 1990s.

When the city creates a TIF district, property taxes on real estate within the district are frozen. Instead of going to local governments, money generated by any increase in property taxes is used to subsidize infrastructure and private development within the district.

155 N. Wacker sits just outside the western edge of the Central Loop TIF, meaning it is not eligible for TIF subsidies. Absent an expansion, a tower built there also would not generate any additional funds to be used for other projects in the district.

While the Central Loop TIF expires at the end of 2008, the city is considering trying to extend the life of the district, a move that would require the approval of the state General Assembly (Crain's, July 18). The city also could create a new TIF that would include the Buck Co. project, a move that would require only city approval.

©2005 by Crain Communications Inc.

LA1

July 31st, 2005, 06:19 AM

Please let that development go through. Randolph sucks between Wacker and Wells. Speaking of Wells, the blocks between Randolph and Wacker need to be redeveloped big time. There seems to be a 4 block hole there in the Loop imo.

ChicagoLover

July 31st, 2005, 07:47 AM

You have to remember the high vacancy rate. I wish all of this talk of new office towers would quiet down until a considerable proportion of this vacant space can be absorbed. The banks are going to end up with some empty giants on their hands that are not particularly suitable for condo conversion.

geoff_diamond

July 31st, 2005, 10:16 AM

Well, the southward march of residential could continue to fill up the gaps in the Loop. It would only serve to further the goal of a true 24-hour district south of the river.

LA1

July 31st, 2005, 06:22 PM

The Urban Politician

July 31st, 2005, 08:28 PM

Actually, I don't think it will. As far as I know, there's nothing that tall planned for the one parcel that seperates Twelve55 from Roosevelt. So, unless something changes (or I'm completely on crack), you'll always be able to see this one looking down Michigan.

^Oh, come on. That lot will TOTALLY get developed at some point. That plan is for 4 highrises along Roosevelt, starting with 1 Museum Park from the east, up to Michigan Avenue on the west. It's only a matter of time

The Urban Politician

July 31st, 2005, 08:38 PM

Why can't they put more residential on that 2 block stretch of Wells? It doesnt need to be office space. There are 3 residential buildings in that area now, plus 1 coming later next year, not to mention Waterview. This could become the "residential" part of the West Loop. They should focus more on turing the Loop into more mixed use, rather than more office space. When office space is needed there is River North and Clinton and Canal Streets. Its not a big deal. Clinton will become the new Dearborn once that new subway has connected between the green and blue lines. 2 massive commuter stations, Clinton Street (Canal seems to be built out) has tons of potential.

Put more office space in River North, along State, Dearborn, Clark and LaSalle. Wells in River North should stay residential.
More residential/hotels in the westside of the Loop. Im talking about LaSalle, Clark and Franklin. The West Loop needs a couple of hotels and retail. I like the mix of housing and office space now. But Union Station should have a large hotel near it. The South Loop should probably stay residential/institutional. The East Loop is truely mixed use now, but they could use more services for residents.

^I think you need to read the Central Area Plan.

The plan calls for the east loop to gradually become more residential/institutional, with Michigan/State/Wabash to be the retail/entertainment spine of the entire central area. River North will mostly be residential with some office near the river. The Central and West Loop are supposed to stay mostly office (maybe some residential or mixed-use is some places), but it is suggested that residential be strongly discouraged in the western part of the central loop and in the west loop. They claim, in the Central Area Plan, that this is the ideal area for future office growth and it should be preserved for that, esp considering the plan for the future West Loop Transportation Center and it being the downtown terminus of so many Metra commuter lines (and the expressway being there).

The South Loop is supposed to be an "education and institutional" corridor, with also mostly residential, plus retail corridors along Michigan/State/Wabash and Roosevelt, as well as Cermak.

Regarding the lack of retail in the west loop. That is also planned to change. They discuss making Clinton sort of the "main street" of the west loop office district, with plans for more retail and streetside cafes.

All of these issues have been thorougly examined. For any of you who are interested, I suggest go go to the Dept of Planning & Devt website and read up on the Central Area Plan. It's very well crafted

geoff_diamond

July 31st, 2005, 08:38 PM

But there is only one fairly small parcel of land seperating Twelve55 from Roosevelt meaning that there's only one opportunity for something taller to get built. If that westernmost building of the ones you mention isn't taller than Twelve55, its prominence in the southern skyline is forever guaranteed.

Steely Dan

July 31st, 2005, 08:52 PM

the plan for that peice of land in front of twelve55 south is to have a ~620' tower there. that might change of course, but according to the current plan, twelve55 is going to be significantly blocked by the new roosevelt streetwall towers.

LA1

July 31st, 2005, 11:33 PM

The Urban Politician

August 1st, 2005, 02:41 AM

I disagree with not adding more residential into the Loop on the Western side. As a result of discouraging residential development on Franklin or W. Randolph...surface parking lots remain. A couple of those ugly blocks of Wells and Randolph remain. They won't be developed until the office market picks up? Thats bullshit, and a terrible strategy. There will always be room for office expansion. I understand the central area plan, but when they made this plan, I dont think they understood the demand of living in downtown like we are seeing now. I wonder if this plan is open to changes here or there.

First of all, I hate surface parking lots as much as the next guy. But lets be honest--there is no rush to build this area out. It's not unreasonable to wait for the market to catch up. Secondly, it's unlikely that residential will sell very well in this area--for the same reasons you mentioned--it's still pretty much a dead zone in the evenings and weekends, there are very few services for residents, and there are plenty of more-attractive residential enclaves selling in other places. Just look at how hard a time Waterview Tower or Riverbend Tower, or even Skybridge, have had in selling units despite their great views.

Not only that, but the city is recognizing that companies have new needs (larger floorplates, more state-of-the-art facitilities, etc) and are thus abandoning older office buildings in the east loop. The most practical place to build office, therefore, is the west loop--because it is closest to all of the rail and expressway infrastructure. It would make less sense to build office in River North or the South Loop since, even though they are decently served by the CTA, they don't have the same Metra and expressway access that the west loop does. In other words, it's largely about the suburbanites. But who cares--as long as companies move into or stay downtown, that's what matters.

All in all, the westward migration of the office district was inevitable. Those vacant lots really need to be preserved for future office development if downtown Chicago is to stay economically competitive

geoff_diamond

August 2nd, 2005, 08:34 AM

Hrmm... is there any information on this 600+ tower? This is the first I've heard of it.

BVictor1

August 3rd, 2005, 03:29 AM

http://www.**************/NHNew/Columnists/GailGraphic.jpg
Downtown's record building matched
by record buying in 1st quarter of '05

If 2004 was a big year for new housing in downtown Chicago – and hefty sales figures and ubiquitous construction cranes leave little doubt – 2005 has the potential to be even bigger.

According to the latest Downtown Chicago Residential Benchmark Report by Appraisal Research Counselors, developers are contemplating the addition of up to 10,000 new housing units – both for sale and for rent – to the downtown market.

It’s likely that the actual number of new homes announced during 2005 will be closer to 8,000 units, but that’s still substantially more than the 6,000-plus units introduced during 2004.

And 2004 was a record-breaking year for new construction, with developers writing contracts for 6,300 housing units – 83.5 percent more than during 2003.

To put these numbers in perspective, consider this: from 1990 through 2004, an average of around 2,867 units a year were put on the market or delivered in downtown Chicago, according to an analysis by Appraisal Research Counselors.

The obvious question in the midst of such a building boom: are there enough buyers to go around?

The answer so far, is positive. During the first quarter of 2005 alone, we reported more than 2,500 sales (contracts and reservations) in our quarterly Downtown Chicago Residential Benchmark Report. This represents an 80 percent increase over the first quarter of 2004 and a 50 percent increase over the record level set in the first quarter of 2000.

Unprecedented building is being matched by unprecedented buying. In fact, of the units currently marketed by developers in completed downtown buildings, only 273 are unsold. The remainder of the 3,643 available condos that Appraisal Research Counselors has identified include 1,589 units in buildings that will be completed between sometime in 2005 and 2008, along with 1,781 units in buildings with pre-sales programs that have not yet broken ground.

Homebuyers now have a dizzying array of choices when it comes to downtown condominium developments, including a growing number of apartment buildings converting to condominum ownership.

The conversion trend really heated up during 2005, which could become the most active year for condo conversions since the early 1980s. Four major downtown highrise conversions totalling 1,360 units started marketing programs during the first quarter, and several others announced or began sales programs in April and May.

The demand for converted condo units remains high among buyers, as these buildings often have excellent locations and lower prices because of their smaller unit sizes. Their mix of units – often weighted towards studios and one-bedrooms – fills a niche that’s underserved by new construction.

The condo is king downtown, where so far in 2005, developers have not unveiled any new loft / adaptive reuse or townhouse projects.

Who is buying all of these condos?

Suburbanites, attracted to downtown living and potential appreciation, are a growing share of the market. Some are buying condos as primary residences and some simply want in-towns for use on weekends and after long workdays at Loop offices. Others are purchasing units as investments. This is different from a few years ago, when first-time and move-up buyers dominated the market.

As you might expect given this market shift, condo prices continue to rise, with less focus on entry-level product and more on homes for affluent buyers. Given current land and construction costs, developers aiming for price-sensitive buyers (purchasing homes priced at $250 per square foot and less) can’t afford to build downtown. Look for these homes in other submarkets on the periphery of the official downtown market area.

The high-end market is growing south of the Chicago River too, where $500-per-square-foot luxury housing is now firmly established. Formerly entrenched in the Gold Coast and the River North / Cathedral District area, the upscale condo market has forded the river, spurred on by the development of Millennium Park.

Buyer demand is generating premium prices for properties located along the perimeter of Grant and Millennium parks, from Randolph south along Michigan Avenue to Roosevelt. In particular, the South Loop broke the $500-per-square-foot barrier during the first quarter with One Museum Park, by the Enterprise Companies. This project alone has generated a huge share of luxury market sales for the quarter

Though sales have been brisk, this surge of downtown development will mean greater competition among developers, which can be a positive for buyers. Significant risks to the housing boom exist – competition between resales and developer units, the effect of speculators and the lack of area job growth – but 2005 is already shaping up to be a record year.

Gail Lissner is co-author of Appraisal Research Counselors’ quarterly Downtown Chicago Residential Benchmark Report, an in-depth analysis of the downtown Chicago housing market, focused on the area between North (1600 N.), Cermak (2200 S.), the lake and Ashland (1600 W.) The report tracks development activity and helps people investing in residential real estate make informed decisions. www.AppraisalResearch.com.

BVictor1

August 3rd, 2005, 04:02 AM

On the rise
Something good is happening
to highrise design in Chicago

It must be tall, every inch of it tall. The force and power of altitude must be in it, the glory and pride of exaltation must be in it. It must be every inch a proud and soaring thing, rising in sheer exaltation that from bottom to top it is a unit without a single dissenting line, that it is the new, the unexpected, the eloquent peroration of most bald, most sinister, most forbidding conditions.
—Louis Sullivan

by Barry Pearce

What would Louis Sullivan, one of the world’s greatest architects and the genius behind many of Chicago’s greatest buildings, think of the city’s skyline today? Given his quote above and his quest for an original American architecture, to say that many of our newest tall buildings would disappoint is probably gross understatement.
http://www.**************/NHNew/Features/HighriseGuide_August2005/OneMuseumPark.jpg
Chicago was kind to major developers during the 1990s, but they were not inclined to return the favor. Dozens of new highrises have sprouted in neighborhoods ranging from the South Loop to the Gold Coast, and most of them, we regret, have not been proud or soaring. They were things all right, we’ll give them that, but adjectives other than Sullivan’s spring to mind: banal, beige, bland, boring.

To be fair, developers are in business to make money, not to advance the culture, and in the frenzied real estate market of the ‘90s, there was no shortage of buyers willing to sink ever-steeper amounts of cash into even the ugliest buildings. Why should we expect developers to deviate from a formula – and formula is the word – that works so well?

Perhaps the better question today, thankfully, is why have they?

If Sullivan would be disappointed by recent buildings, he might be pleased, even thrilled by much of what’s on the drawing board. Developers have shifted gears, and the residential highrises now breaking ground include many fresh designs, even a couple of gems with a chance to make it into the pantheon of iconic buildings we think of as defining the city, the buildings tourists remember and residents pause to consider year after year.

Two of the city’s biggest planned developments – Central Station in the South Loop and, across Grant and Millennium parks, Lakeshore East – deserve special mention, partly because they are large communities in prominent locations and partly because the progressive look of their latest designs is such a pleasant surprise.

In their River North developments, Magellan Development Group and NNP Residential & Development paid attention to amenities, finishes, locations and views, but architecture seemed little more than an afterthought. In their massive Lakeshore East community, however, the highrises have been interesting, with progressive designs, variety and integrity. The Lancaster, designed by Loewenberg & Associates, features a sheer glass face that will play nicely off of surrounding buildings and the community’s central park. DeStefano & Partners’ design for the Chandler will feature a glass-heavy façade gracefully beveled in a segmented design that breaks up the building’s scale. Next door, DeStefano’s Regatta will respond beautifully to its riverfront site, with an elliptical glass curtain wall that presents a curve as bold and elegant as a full sail to the river.

Directly south, in Central Station, the Enterprise Companies has turned away from the style, or lack of style, displayed in its first Museum Park buildings. Pappageorge Haymes designed the new 23-story Museum Park Place with a wall of glass, exposed steel, bold diagonal lines and postmodern accents. The architect followed this with the 61-story One Museum Park, a tower that curves and unfolds with the grace of a flower and in which form follows function to a degree approaching brilliance. Sullivan might well have been a fan.

Why this shift to a more progressive vision in some of the latest highrises? Part of the answer probably has to do with the building boom of the last decade, at its hottest downtown.

In the late ‘90s, housing analyst Tracy Cross said that the city had not seen such a construction craze since the Great Chicago Fire. Unfortunately, the comparison was apt in more ways than one. After the fire, Chicago architects, it was said, measured their work in miles of building fronts. The 1990s saw the same emphasis on quantity in residential construction, and we will have to live with the results for decades to come.
http://www.**************/NHNew/Features/HighriseGuide_August2005/Regatta.jpg
As the many residential buildings designed and sold in the ‘90s were completed, there rose a small but vocal reaction against the bland retro buildings transforming our cityscape. Local media began to run stories decrying shoddy design and in 2003, even Mayor Richard M. Daley, whose personal taste seems to lean much more towards 19th century Paris than 21st century Chicago, chimed in with a call for no more ugly buildings (never mind that his administration had overseen and subsidized the development of so many).

At the same time, Chicago was building a small track record for progressive residential design. Developers like CMK Development and Smithfield Properties won praise for their consistently forward-looking buildings, and they had no trouble selling condos. They’re still at it. The new crop of highrises includes Smithfield’s 30 W. Oak, which celebrates its skeleton in a way that tastefully evokes the Chicago School, and Modern Momentum, another Smithfield building with a dramatic four-story center cutout that will keep passersby talking on State Street.

Helmut Jahn, whose cutting-edge work seems to be appreciated everywhere but Chicago, is back on the local scene, following up his Illinois Institute of Technology project with the planned 600 N. Fairbanks, a sleek glass tower that audaciously leans over a neighboring building and in some ways, seems a response to the awkward pedestals on which so many recent Chicago highrises have been perched.

Of course, the developers of 600 N. Fairbanks are touting Jahn’s name as they promote the project, and if his star power entices buyers who are more concerned with cachet than aesthetics, so much the better. Likewise, it doesn’t matter whether or not Chicago developers have seen the light of good design, or herd mentality intact, are simply being jostled up a new hill. The important thing is the shape of our built environment, and judging by the new towers, we’ve shifted, at least slightly, in the right direction.

BVictor1

August 5th, 2005, 12:44 AM

August 04, 2005
www.chicagobusiness.com

Wacker Drive rehab gets funding

(AP) - The planned renovation of a one-mile stretch of Upper and Lower Wacker Drive in the heart of Chicago took a major step forward Thursday when officials announced that $25 million in federal funds had been secured for the project.
The north-south section of the roughly L-shaped roadway needs "dramatic improvement for safety purposes," said Sen. Dick Durbin, who announced the funding alongside fellow Democratic Sen. Barack Obama, Chicago Mayor Richard Daley and other officials.

None of the officials could say where the rest of the money for the $280 million project would come from, but they were uniformly confident city, state and federal sources could be found.
"We've done it in the past, we will do it again here," said Daley, referring to the $200 million project to renovate the east-west portion of Wacker Drive that was completed in late 2002.

Some 60,000 vehicles and hundreds of thousands of pedestrians use Wacker Drive each weekday. The double-decker drive's lower level was featured in car chase scenes in "Batman Begins" and "The Blues Brothers."

Illinois Transportation Secretary Tim Martin said that while he could not say what the state's share of the reconstruction project would be, it would go forward.

"It pretty much has to get done because it's some 50 years old and on its last legs," he said after the news conference.

Daley said he hoped the project would break ground in 2007 or 2008. When it does, the project would likely proceed in much the same way as the first phase of the project, which took nearly two years to complete, said Denise Casalino, the city's planning and development commissioner.

That means portions of Upper and Lower Wacker Drive would be closed during reconstruction and reopened when work is finished. One major change, though, is that because so many people who take commuter trains to the city cross the affected section of Wacker Drive on their way to and from the Loop, more temporary pedestrian bridges will be built.

"We have to maintain that commuter traffic," Casalino said.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast or redistributed.

geoff_diamond

August 5th, 2005, 03:00 AM

I would expect this project to be simpler to complete than the east/west portion because there are no bridges involved.

BVictor1

August 5th, 2005, 02:17 PM

Streeterville style

August 5, 2005

BY LARRY FINLEY Real Estate Reporter

The time is right for Streeterville.

A dozen or more new condominium high-rises are under way or will begin next year, adding about 3,500 moderate- to high-priced residences to the market there, according to Gail Lissner, vice president of Appraisal Research Counselors Ltd.

Streeterville has a lot to offer -- large pieces of land close to Michigan Avenue and surrounded by Lake Michigan and the Chicago River. It's got shops, restaurants, theaters, museums, beaches and even a Ferris wheel. So why now?

"It's been overlooked, and suddenly it's all coming together," she said. "There hasn't been a lot of development there in the last 15 years. And now it just so happens that it is all being clustered in one year. Michigan Avenue has become increasingly desirable as a place to be near. What better place to be than Streeterville?"

Building might have been put off there because some developers were uncertain of the market and how many new condominiums Downtown could handle, she said.

"I think that the sites were big, and early in this market developers were looking for smaller projects," she said. "Developers were concerned about absorption and most of the projects were smaller."

The area will have a sufficient variety of units and prices to attract more of the "middle market" than the nearby Gold Coast, on the other side of Michigan Avenue, she said.

"The buyer profile continues to be a mix, which is what gives strength to the market," Lissner said. "It's people who are coming back from the suburbs, whether for permanent or part-time residency. It's trade-up buyers. It's first-time buyers. And there is speculating going on. We also are seeing a lot more people from out of town coming in and keeping part-time homes here."

The Northwestern University and hospital complex at the north end of Streeterville has brought a steady market of staff, students and interns, she said.

"There are many more sites left," she said. "It's been reported the CBS-TV site [630 N. McClurg Court] will be redeveloped. LR Development has another site they haven't developed yet at Lake Shore Drive and Grand. There are a number of sites throughout the area that are potentials. But we don't see them happening this year."

The proposed 115-story Fordham Spire, at Lake Shore Drive and the north bank of the Chicago River, should not have an impact on the market any time soon, she said. The builder, Fordham Co., must get city approval and then it would take several years to build, she said.

But projects such as Centrum Properties' 3-tower CityFront Plaza "can bring up the number of condominiums in Streeterville pretty fast," Lissner said.

Centrum partner John McLinden said the first building, the Fairbanks, will have 281 condominiums out of the total 900 expected for the entire trio of towers. The site is the entire block bounded by St. Clair Street, Illinois Street, Columbus Drive and Grand Avenue, he said.

"The time for the neighborhood finally came, and a lot of people were thinking the same thing," he said. "A lot of the projects over there are big projects because the city zoning allows it. It's not like building just a few town homes."

Early preconstruction sales have been strong, he said, and include a high number of suburbanites buying a city place, and empty nesters who own second homes outside of the area.

"Even though there are a lot of sales going on over there, everyone seems to be doing well," he said.

Fairbanks prices begin in the mid $300,000s for a 1-bedroom to more than $2 million for the largest penthouse. Sizes range from about 875 to 1,920 square feet.

Standards include floor-to-ceiling windows, kitchens with granite countertops, stainless steel appliances, marble-tiled master baths, recessed lighting fixtures and a pre-wired media center.

The building will have 24-hour doormen, concierge services, indoor parking, outdoor pool, fitness center, steam room, locker rooms, clubroom, business center, theater, media room and bar area, as well as beautifully landscaped gardens, McLinden said.

Construction is scheduled to begin by the end of the year, with the first deliveries in 2007, he said. The sales center is at 240 E. Illinois, (312) 923-9990, or visit www.CityFrontPlaza.com.

The @properties real estate company has had so much business in the Streeterville and Gold Coast areas that it will open an office there, at 212 E. Ohio, later this year, according to co-founder Thaddeus Wong.

"The number of people we have who are looking for housing is astronomical, especially new construction," he said.

The initial spurt of residential housing in the 1990s caused a growth in restaurants, businesses and other services, which made the current growth more attractive, he said.

"You have a movie theater," he said. "You have a Dominick's [Finer Foods] opening. You have Fox & Obel [food market]. You have the retail and commercial that it was lacking. At the same time, it borders Michigan Avenue. You walk directly west and you are at Nordstrom's. Walk to the east, you are at the beach and Navy Pier."

Favorable zoning for larger buildings has made construction more profitable there, he said.

"Streeterville still has many spots available for construction," he said. "The density allows for a much larger number of units, which allows for 1 bedrooms and 2 bedrooms. That is more affordable to more people. It's still expensive, but it is more affordable. The Gold Coast has been heavily developed for a century. So, the opportunities for new housing are scarce. Most of the new housing that is going up is high end. It's exclusive."

The people who are buying in Streeterville want "luxuries and amenities" for their money, Wong said. They want 9- or 10-foot ceilings, lots of windows, a concierge service, 24-hour doormen and a party room, he said.

"All of the buyers are purchasing a parking space," he said "If they don't have a car, they still purchase a parking space, because everybody knows Chicago is still a driving city. When you have a condominium without parking it is in much less demand at resale than that same condominium with parking."

"A number of parents are buying homes for their kids, whether they are students or graduates from college," Wong said. "With the real estate appreciation that everyone has experienced, they all want to be owners rather than renters."

The @properties information number is (312) 254-0200 or www.atproperties.com.

The recently announced 550 St. Clair sold 59 of its 112 condominiums the first weekend it opened and is now close to 70 percent sold, according to Mark Sutherland, principal of Sutherland Pearsall, the developer.

"It hasn't been one particular type of unit, either," he said. "It's been across the board from our studios to the 1-, 2- and 3-bedrooms to the penthouses."

All sizes are available, he said, from the studios, starting at $270,000 to the penthouses from $1.1 million and $1.6 million.

A buyer survey found that 20 percent are from out-of-state, 25 percent are from the suburbs and the rest from the city, he said.

"Quite a few have homes in Florida and are buying these as a summer home to get away from the south," Sutherland added.

Interiors and appliances will all be premium quality, he said, including granite countertops, marble or slate floors and stainless-steel appliances.

Other amenities include floor-to-ceiling windows, 10-foot to 11-foot ceilings, Brazilian cherry or maple flooring, solid core doors and wiring for telephone, satellite TV and high-speed Internet.

Part of the early sales success, he said, has been because of the response to the sales center at 201 E. Ohio, which includes two fully decorated models -- a studio and a 3-bedroom, with lighted city panoramas as a backdrop.

Call (312) 222-0550 or visit www.550StClair.com.

To the east, 600 N. Fairbanks will be a 41-story high-rise with 224 condominiums designed by the internationally known architect Helmut Jahn for Urban R2 Development LLC.

Jahn said he would bring European influences to the building design. It is Jahn's first project in the downtown area since his 120 N. La Salle office building was completed in 1991.

"Europe has encouraged innovation in technology and materials," Jahn said. "The expectations for living accommodations are higher in Europe in such areas as fresh air, light and visual privacy."

Prices will start at $330,000 for a 1-bedroom unit with 850 to 925 square feet of space and 1-1/2 baths. The largest offerings are the 3-bedroom penthouses on the four top floors, which have 3,000 square feet and 12- to 14-foot ceilings. Prices range from $1.6 million to $1.9 million.

Company President Gary Rosenberg said that "to meet the desires of a market looking for high-quality living, we created, as our standard, what is offered as upgrades for others."

This includes premium appliances, hardwood flooring, exposed concrete walls and ceilings, individual heating and cooling, solid core doors, chrome plumbing and hardware fixtures and floor-to-ceiling windows.

All units will have inset balconies, he said, "which is a nice feature because it provides a semi-protected area. In many locations, it gets windy and people don't get to use them as much as they expected."

Building amenities will include a glass lobby, conference/media room, green-roof terrace, fitness center, lap pool, sun-deck, home theater, business facilities, 24-hour doormen and two dog runs on the 13th floor. Eleven floors of the high-rise will be designated for parking and mechanicals, he added. For more information, call Koenig & Strey at (312) 951-0807.

Some of the last pieces of Streeterville's lakefront will be filled by 600 N. Lake Shore Drive, a two-building set of high-rises being built by the Belgravia Group and Sandz Development, which also built 530 N. Lake Shore.

There will be a total of about 400 units in a 40-story tower and a 46-story companion. Prices start in the high $300,000s for a 1-bedroom unit with about 1,000 square feet and 1-1/2 baths. There are also 2- and 3-bedroom units with 2 to 3-1/2 baths.

The north building is being constructed first, and will be about 60 feet from the south tower to help improve the views. The buildings will be set back on their sites to help reduce shadows on the nearby beach.

Standard features include: stainless steel appliances, granite countertops, marble master baths, separate tubs and showers, laundry appliances, oak flooring or carpeting, walk-in closets, balconies and individual heating and cooling.

The building features a rooftop sun-deck and garden, fitness center, community rooms with kitchens, dry cleaners, individual storage, bicycle room, indoor parking, 24-hour doormen and concierge services. For more information, call (312) 832-0060.

MCL Companies continues to grow its big River East neighborhood with three sections and room for two more on the south end of Streeterville.

The 47-story ParkView condominium, at McClurg and Illinois, has 1-, 2- and 3-bedroom units starting at $425,900. They feature hardwood floors, walk-in closets, granite countertops, stainless steel appliances, contemporary baths, whirlpool tubs and private balconies.

The building includes indoor parking, fitness center, outdoor pool, theater room, entertainment suites, individual storage, bicycle room, dry cleaners, 24-hour doormen and on-site management. Call (312) 836-4200 or visit www.mclcompanies.com.

At 150 E. Ontario, a 51-story condominium building is planned for the current properties at 148-152 E. Ontario, just east of Michigan Avenue.

The 160-unit development will feature retail space on the first three levels, as well as parking for 180 cars, according to Monaco Development, now waiting for final approval from the city.

At 222 E. Pearson, Vilas Development Corp. recently purchased a 213-unit apartment building and is planning to convert it to condominiums this autumn. The high-rise building was built in 1963. For more information, call (630) 986-2434.

BVictor1

August 7th, 2005, 02:17 PM

CITY REPORT
Condos to rise on Gold Coast parking lot
41-story tower set for Streeterville

By Jeanette Almada
Special to the Tribune
Published August 7, 2005

A $100 million, 41-story tower will go up on the site of a parking lot in the Streeterville neighborhood, adding another 227 condos to a substantial number of residential units planned or under construction in the area.

The 600 N. Fairbanks LLC will build the tower on a .66-acre site at 250 E. Ohio St. and 610 N. Fairbanks Ct.

That limited liability corporation consists of Chicago-based Urban R2, a residential developer, and Schatz Properties, a family-owned business that has developed other projects in Streeterville. It also owns the building that in the 1930s was the Chez Paree Supper Club, north of the development site.

The project was approved as a planned development July 21 by the Plan Commission. City Council approval is still needed.

The developer has owned the land for a year, said Gary Rosenberg, CEO of Urban R2, in an interview last week. The developer bought the property for a private owner.

"One reason building has not happened on the lot is because it was the site of a former gas station and had to be cleaned," Rosenberg said, adding that work is complete.

Residential units in the 600 N. Fairbanks Tower, designed by Helmut Jahn of Chicago-based Murphy Jahn Architects, will be on floors 13 through 40, Rosenberg said.

The one-, two-, three-bedroom and penthouse condos will range from 820 square feet to more than 3,150 square feet, Geoffrey Ruttenberg, co-chair of Urban R2, said in a phone interview last week.

"Floors 14 though 36 will each have nine units--five one-bedroom units with 820 to 926 square feet of space; three two-bedroom units with 1,085 to 1,258 square feet of space; and one three-bedroom unit with 1,750 square feet of space," Ruttenberg said. Penthouses on the 37th through 40th floors will consist of two-bedroom units with 1,550 square feet and three-bedroom units with 3,000 to 3,150 square feet, according to Ruttenberg. "We have some flexibility concerning those larger penthouse units, so that we can customize to accommodate buyers who are looking for a four-bedroom unit," Ruttenberg said.

Prices will range from $325,000 to $2.2 million.

Parking for 210 cars will be built on the second through 12th floors, Rosenberg said. A fitness room, party room and landscaped outdoor area will be built on the 41st floor. Aside from a lobby and mail room, the ground floor will have a conference room for residents, according to Rosenberg.

The developer will contribute $580,880 to the Chicago Department of Housing's Affordable Housing Opportunity Fund, which the city uses to subsidize the cost of affordable housing construction, Planning Department staff told commissioners.

Urban R2 began marketing the units from its office at 1246 W. George St. in July It has a list of 750 interested buyers, according to Ruttenberg. Pending receipt of a building permit, Rosenberg expects to begin construction in early 2006 and to deliver the first units in late 2007.

The Urban Politician

August 7th, 2005, 08:52 PM

How tall was the Scholl building anyhow?

From New Homes Magazine:

August 5, 2005
Horizontal emphasis marks 30 W. Oak design
About 75 percent of the units have been sold at 30 W. Oak, according to developer Smithfield Properties. The highrise came online in early 2004, but a sales center on site was closed when construction began.

The tower is well underway at the corner of Dearborn and Oak on the former site of the Scholl College of Podiatric Medicine, in the Gold Coast.

Developer William Smith, of Smithfield Properties, is a fan of contemporary architecture, and his recent collaboration with architects Booth Hansen has been especially productive.

The new 30 W. Oak development is in one way, a direct heir of the Chicago School, with the building’s skeleton proudly displayed in the deign by Booth Hansen. But the emphasis here is insistently horizontal despite the tower’s 24-story height, and there is no distinguishable base or cap. This highrise is simply of a piece, an effect that’s accentuated by a curvilinear façade.

“It’s not a contextual building in that it doesn’t look like the buildings around it,” said Charlie Stetson, principal at Booth Hansen. But, Stetson explained, “It interacts very well with the location based on the fact that the south part of the building is curved and opens up views to the south…The idea was to maximize glass on the south side.”

The main living areas in most of the units are located on building’s south side, and bedrooms and closets are on the north ends of the units. The condos have two to four bedrooms and 2.5 to 4.5 baths. Units feature granite countertops, Sub-Zero refrigerators, marble-tiled baths with marble counters, frameless glass shower doors, Grohe faucets, eight-foot solid-core doors, Baldwin hardware, floor-to-ceiling windows and Castec shades. Prices for the condos ranged from the $630s to $3 million in July.

The building has 24-hour door staff, 10-foot ceiling heights, a fitness facility, storage rooms, bike storage and a year-round heating and cooling system. Spaces in the heated indoor garage are priced from $50,000 to $85,000.

Most of 30 W. Oak has only two units per floor. Large 18-by-24-foot terraces provide what are essentially added rooms outside the homes, Stetson said. The terraces jut out on the east and west sides of the building and are surrounded by glass railings. The east side of the building offers a view directly down Oak Street to Oak Street Beach.

First occupancy scheduled for late summer 2006.

ChicagoLover

August 7th, 2005, 10:54 PM

With regard to 30 West Oak, What is it with that bare-bones model? If I were a potential buyer, that would simply not do. For a project with homes starting essentially at around $700K, if you include one parking spot, they should be able to produce one freakin' rendering.

BVictor1

August 8th, 2005, 01:59 PM

INSIDE INFORMATION
NEW CONSTRUCTION

Published August 8, 2005

The following construction projects are coming up for bid. Listings include project city, name of project, address, description, start date and project value. Complete bidding details and contact information can be found at BidClerk.com.

COOK COUNTY

Chicago--Pacific Garden Mission, 14th Place and Canal Street, 50,000-square-foot community center, July 2006, $5 million.

Chicago--Fordham Spire, 400 E. North Water St., 115-story residential tower, March 2006, $300 million

Chicago--Burnham Pointe, 720 S. Clark St., 386,500-square-foot mixed-use development, February 2006, $30 million.

itsnotrequired

August 8th, 2005, 04:28 PM

HowardL

August 8th, 2005, 05:26 PM

Developers eye condos, hotels for Near North

August 8, 2005

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters

Encouraged by strong demand for housing and hotel rooms, Chicago developers are pushing ahead with plans for three new high-rises on the Near North Side.

Two of the buildings are condominiums, and one calls for a hotel, according to the developers' zoning applications.

The largest is a 37-story building proposed for 535 N. St. Clair. The developer, Mark Sutherland, principal of Sutherland Pearsall Development Corp., said the building will capitalize on the success of his project across the street at 550 N. St. Clair.

Sutherland said 60 percent of that building's 112 units drew sales contracts in the first week of marketing.

To the west, at 320 W. Erie, a 162-unit building is being proposed. The development manager, Louis Jones, said the zoning request would let an 18-story building replace a parking lot and a smaller structure that includes the Coyote Ugly nightclub.

Jones said the development team has hired well-known architect Lucien Lagrange, whose Chicago firm has designed two other high-rises in the same neighborhood. Their strikingly modern looks have appealed to younger buyers, and are in contrast with the classical buildings Lagrange produced for sites closer to the lake.

Construction could start next year, Jones said. He declined to discuss who the investors are, but public records indicate they include members of the prominent Berger real estate family, including Jonathan and Jeffrey Berger.

The hotel application was filed for 666 N. State, the Dana Hotel, a deteriorated building and a favorite for transients. The application called for a maximum 20 stories with 165 hotel rooms.

Eugene Kornota filed the application. He could not be reached for comment. His publicist couldn't describe the project, but said he has been involved in renovations of neighborhood inns, such as the Park Brompton, 528 W. Brompton, and the Surf Hotel, 555 W. Surf.

City records indicate the Dana Hotel dates from 1891 and has potentially significant architectural features. But downtown's alderman, Burton Natarus (42nd), said the building does not merit preservation

geoff_diamond

August 8th, 2005, 06:58 PM

OMG... if the Dana Rooms get knocked down I will actually dance in the street!!!!!!

Chi_Coruscant

August 8th, 2005, 08:27 PM

666 N. State? Sounds like an evil place to live in! :nuts:

ChicagoLover

August 9th, 2005, 05:42 AM

I recall that the building occupied by Playboy Enterprises on Lake Shore Drive used to have the address "666", but was changed to avoid the obvious association.

ChicagoLover

August 9th, 2005, 09:37 PM

BVictor1

August 10th, 2005, 01:53 AM

I received the following nasty email from Joe Zekas, co-publisher of New Homes (www.**************). I decided to post it here to warn others about how Mr. Zekas' reacts to the neglect of attribution.

I neglected to cite New Homes Magazine when I posted a New Homes articles about Hotel 71 on July 23rd. I know others' postings of articles from New Homes Magazine occasionally haven't included the requisite attribution. Its an oversight. Usually I would write "from such-and-such magazine," but in this case I forgot to do so.

On the one hand, I'm glad Mr. Zekas let me know; I don't want to be posting stuff without attribution. But this guy could have behaved in a professional way, rather than suggest that I'm stupid, and accuse me of "stealing" his content. I certainly never passed off his content as my own.

A more professional "please remember to include attribution and quotations to any material taken from the New Homes website" would have done the trick, Mr. Zekas.

"
re Falor opening Hotel 71 ...

Perhaps you're too stupid to realize that you can't simply copy copyrighted material from someone's web site (in this case, mine, www.**************) and paste it into another Web site without attribution.

I find it difficult to believe, however, that anyone can be that stupid -- despite much evidence to the contrary in this forum.

You're free to summarize our content, quote at reasonable length from it, and link to it. You're not free to steal it outright and paste it into this site.

Please stop, before we have to take more heavy-handed actions to make you stop."

I got a similar PM. The bastard has joined the forum to keep tabs on things. I think that he was extremely unprofessional, and there was no need to make threats, which is what he's doing. I actually got 2 messages. As far as I know, I did credit New Homes. Below are the messages that I received...

On the rise copyrighted material

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

I note that you copied and pasted a story and photos from our Web site, www.************** into this forum.

All of the contents of that Web site, and of our New Homes Magazine, are copyrighted and not subject to the kind of thievery you're engaged in.

We have no objection to your summarizing our content, quoting from it, or linking to it.

It's not permissible under federal copyright laws to simply lift it and incorporate it into other Web sites.

Further violation of our copyrights won't be greeted with as friendly a message as this one.

Wacker Drive rehab gets funding

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

Note that when you stole this material from this Associated Press you included their copyright notice which specifically barred you from redistributing it.

I'm sure the AP's attorneys are going to get quite a kick out of nailing you to the wall with your juvenile indiscretions when I bring them to their attention.

Not a very nice guy, I think he needs to get laid.....

Steely Dan

August 10th, 2005, 02:28 AM

guys, the solution is to never post anything from that website again. if we ignore him, he'll go away, and isn't that what we all want anyway?

ChicagoLover

August 10th, 2005, 04:12 AM

Steely Dan: Rest assured, I will never post anything from that website again.

spyguy

August 10th, 2005, 04:21 AM

He's on right now watching us <_<

The Urban Politician

August 10th, 2005, 09:40 PM

guys, the solution is to never post anything from that website again. if we ignore him, he'll go away, and isn't that what we all want anyway?

Steely, that SOB sent me 4 friggin messages in 1 day, just to tell me the same thing!

He also contacted Jan the administrator, who also informed me that I needed to change the way I provided articles to this website.

I am okay with complying to that, but this Joe Zekas guy needs to just go away. I'm not going to provide any articles from his magazine again, but can't you just ban him? He has harrassed the shit out of many of us through his unprofessional PM's

Steely Dan

August 10th, 2005, 10:02 PM

i do not have the power to ban members. and jan has been in contact with me about this issue. here's what you need to do, along with the rest of us:

1. don't post anything from the dude's website ever again.
2. don't respond to or acknowledge him in any way, shape, or form.

i don't care how unproffessional you think his messages were or how offended you were by them, we just need to collectively decide to ignore the dude from here until the end of time. if we all follow these two extremely simple rules, then he'll go away. it's just that easy.

Chi_Coruscant

August 11th, 2005, 12:00 AM

Steely Dan, I got the same message as TUP and other Chicago forummers. This dude is .....SPAMMING..... Is there a regulation against spamming in this forum?

Starting today, I will no longer surf into that dude's website.

Chicago Shawn

August 16th, 2005, 07:40 AM

Grand Kingsbury

I went by the grand kingsbury site today, and there were some construction mangers talking with the developers at the site, and I was able to find out that this project is indeed moving forward. Foundation work will begin next month. Also, the building will be SUPRISE, 47 stories! :D I then went to city hall and picked up the planned development as well as a Interim Stage Part II Project Summary which lists the total units at 420, total parking places at 435, and varified the floor count at 47. Thier is no height figure listed on the PD or an elevation. The tower will include a landscaped riverwalk as well as improve the existing riverwalk along the East Bank Club. I also found out that this site and the East Bank Club was part of Planned Development number 106, which was originally proposed in 1973 to include up to 1,749 residential units, 800 parking spaces and the health club spread across 5.86 acres purchased from the Chicago, Milwaukee, St. Paul and Pacific Railroad.

Aristocrat Tower

Aristocrat Tower is 25 stories and is located at 21st and Prairie. I got a height figure of 270 feet from the sales center, but it was just printed on a document at the front desk, so I have no idea if it has been rounded or where exactley it was taken from. The tower is part of a new development called "Prairie Station", which at this time also includes the renovation of a 8 story industrial building at 21st and Calumet called Chess Lofts, named after the Chess Recording Studio that once occupied the building. There are plans for hotel space, a multiplex theater and more condos for the block bounded by 21st on the north, Prairie on the west, Calumet on the east, and Cermak on the south. The sales center will have an open hose and party on the 24th next week, which will have the architect Bill Warman on hand and hopefully the blueprints as well. They have a web site at www.prairiestation.com.

A rendering...
http://www.aristocratchicago.com/images/prairie.jpg

There was also a public notice that I spotted in the 1600 Block of South Prairie Avenue, stating that it will be a high-rise with 264 residential units. This could be a revised version of the Prairie District Tower II.

The boom shall go on...:cool:

Chi_Coruscant

August 16th, 2005, 08:02 AM

Good work, Shawn!

NWside

August 16th, 2005, 08:14 AM

Grand Kingsbury

I then went to city hall and picked up the planned development as well as a Interim Stage Part II Project Summary which lists the total units at 420, total parking places at 435, and varified the floor count at 47.

May I have a TUP moment and ask why so many parking spaces? Extra parking for the East Bank Club or are these apartments or condos? Sounds like another tower with a huge 10 floor garage and a Walgreens/Verizon on the first floor.

Chicago Shawn

August 16th, 2005, 08:25 AM

ChicagoLover

August 16th, 2005, 08:24 PM

Man! 47 stories and no rendering! Is that because its an apartment tower? I suppose it is -- they don't really need a big marketing operation. Still, this is killing me.

I"m glad to hear developments along Prairie are continuing southward. Is this news of the Aristocrat hitting us completely out of the blue? The tower isn't on Steely Dan's authoritative list. Was the name changed?

The Urban Politician

August 16th, 2005, 09:19 PM

Its a rental apartment tower, and it will have ground floor retail space, part of which will be occupied by a internet cafe. Also I forgot to mention, those nasty diagnol parking spaces on Kinsbury Street will be going bye-bye. The extra 15 spaces in the tower is probably replacement parking for spaces lost on the street.

^This sounds great, thanks Shawn!

My only concern is that this doesn't have the typical (and overplayed) tower on a podium look. If so, please don't look like the other River North garbage!

The ground level retail is refreshing--I have long felt that Kingsbury Park has needed some retail to spruce up the area.

richardsonhomebuyers

August 17th, 2005, 04:54 AM

I've been meaning to post something about Grand Kingsbury. The building is some where around 493' or 497' I can't remember. I know it is right about that high though. I think most will be happy with the design of this building. It is not just some plain concrete block at all.

spyguy

August 17th, 2005, 05:40 AM

^^ Sounds good to me.

spyguy

August 18th, 2005, 01:12 AM

The Hilton Hotels Corp. said on Wednesday it agreed to sell the Palmer House Hilton, a historic property in Chicago's Loop, to Thor Equities for $230 million.

Hilton said it would continue to operate the hotel as a Hilton under what it characterized as "a long-term management contract."

Thor, a real-estate development company that specializes in urban projects, said it would spend another $100 million to renovate the Palmer House, which was built in 1873 and purchased by Conrad Hilton in 1945.

BVictor1

August 19th, 2005, 07:00 AM

Okay, yeah well, as most of you know, I am supposed to be out of town, but I had to come back just for a day to take care of some school business. So I decided to kill 2 birds with one stone, and I attended todays plan commission meeting.:)

A proposed Residential Business Planned Development submitted by 1401 State LLC for the property commonly known as 1401 South State Street. The applicant has proposed the construction of a residential building containing 278 dwelling units and 195 parking spaces with minimal ground floor retail. (2nd Ward)

http://img387.imageshack.us/img387/1733/p10100202th.jpg

http://img387.imageshack.us/img387/4494/p10100242ck.jpg

http://img387.imageshack.us/img387/6167/p10100215jo.jpg

A proposed amendment to Residential Business Planned Development No. 499 submitted by Central Station, LLC for the property commonly known as 1337-1355 South Michigan. The applicant has proposed the construction of a 32-story residential building containing commercial/retail at its base and 260 dwelling units and accessory parking. (2nd Ward)
Also known as 1400 Museum Park

http://img386.imageshack.us/img386/7810/p10100264bz.jpg
This building will rise to a height of 344' 6"

I'll be heading back to Michigan tomorrow, and i'll talk with you guys next week.

Oh, by the way, both of these projects were approved.....

spyguy

August 19th, 2005, 08:13 AM

Nice. Enjoy your trip.

geoff_diamond

August 19th, 2005, 08:47 AM

I REALLY like the Central Station tower... and I really WANT to like the one on State, but, I'm not sure about that random box truss they decided to suspend on it? I guess I won't make any final judgements until we find out if it actually serves any purpose.

The Urban Politician

August 19th, 2005, 07:18 PM

^ The one on State is a fresh change.

AFter the boring dullness of the University Center, Library Tower, State Place, and Vision on State, it will be nice to see something a bit glass and steel-y.

wickedestcity

August 19th, 2005, 09:45 PM

The entire 19-story Vision on State will be set up for Wi-Fi, or wireless Internet. Residents will be able to access the Internet from their laptop computers wherever they are inside the building at State and 13th streets, according to Michael Golden, co-founder of @properties, the broker.

"The building is set up to be very tech user-friendly," Golden said. "Everyone in the building will have wireless access when they move in. We set them up with a wireless card for their computer and part of their assessment pays for the service."

The 253-unit building will have 1- and 2-bedroom units ranging from about $185,900 to $288,900. Sizes are 610 to 990 square feet. Parking spaces are $30,000 each.

"This is a first-time buyer market," Golden said. "They are generally a younger marketplace. That generation is very tech savvy. They use the Internet and they are more mobile."

First-time buyers are "very price sensitive," he said. "So we thought that it would be a very timely amenity to have."

Each unit also will have its own designated computer work station, Golden said.

"Even though the units are already very efficient, we have worked in tech centers -- areas where people can build in a desk and have a work center in a little nook. In the smaller ones, it would be a little inset area for a 5- or 6-foot desk. Then for the larger ones, you have a little den space itself, a 7-by-8-foot space."

The areas will have an electrical outlet as well as jacks for telephone and cable connections for wired computer systems. For more information, call @properties at (312) 491-0200.

A 42-inch plasma television is something that most new condominium buyers might wish for someday. At the new Printers Corner, in the South Loop, it comes as a standard from Day One, according to Cyndy Salgado, regional vice president for Garrison Partners.

"We will install them, per the customer's request, either mounted on the wall or on a stand, if they want to move it around or take it with them when they leave," Salgado said. "They look great in condominiums where you have more limited space. They are easier to decorate with than projection TVs."

The units range from about 743 to 2,290 square feet and are priced from the $230,000s to $776,000. They have 1 to 3 baths, balconies, and some have dens. Parking spaces start at $32,000. Each of the units also will have its own tech center with a high-speed data line for a computer, phone and TV.

"So even the 1-bedroom home will have a tech center," she said. "By designing these floor plans around the inclusion of a plasma screen TV and a central tech center, we are able to free up an extra space for other uses."

The office center includes a counter with data and power lines below, plus shelving for supplies and books, she said. The sales center is at 47 W. Polk, call (312) 880-1800.

The single-family homes at Geneva Terrace Estates, in Lincoln Park, are being built to show just what technology is possible now, but with the capacity to expand into the future, explained broker Danny Glick, of Rubloff Residential Properties.

The 22-unit enclave, west of Clark Street at Schubert, is being built by developer Stuart Rose. The four-level designs range from about 5,200 to 7,400 square feet and are priced from $2.3 to $3.5 million.

"There are 100 miles of wiring behind the walls having to do with everything from audio, video, data, phone, cable and Internet," Glick said. "There is more wiring than anyone will fathom what to do with. The capacity of the house depends on how the buyers choose to outfit it."

As technology or needs change, the house should be able to accommodate them, he said.

"We photograph extensively in all of the walls before the dry wall goes," Glick said. "So we know where every speaker, cable and wire is. So, three years from now, if you want speakers in the laundry room, we can come in and put the hole exactly where it needs to go."

A closet in the basement will include all of the Smarthouse electronics used to control the communications, entertainment, environ- ment and security, he said. It will also store all of the CDs, DVDs and tapes and play them to any or all rooms when desired.

The front door will not only have a video camera for security, but there can be a pad installed that "reads" the fingerprint of the owner or anyone else. But it can do more than just open the door.

"You can program the house so that when you enter, your favorite CD plays and the lights come on and doors open or close," Glick said.

A cleaning person, for example, could be given fingerprint access to the front door, but be locked out of certain rooms, such as the wine cellar, he said.

"If Federal Express makes a delivery, you can have the doorbell programmed to your cell phone," Glick said. "They ring the doorbell, it rings the phone, and a video camera on your computer tells you who's there. You can buzz someone in from Boston or Bangladesh."

The $3.5 million house currently being completed has a third-floor home theater with a 7-foot screen that drops down out of the ceiling, a retractable overhead projector and 8 or 10 speakers. It includes a wet bar and an adjoining roof deck.

The house is set up for wireless networking, so those laptop computers will work anywhere.

There is a central vacuum system that allows cleaning hoses to be plugged into the walls when needed and then removed. But, the latest innovations in cleaning, he said, are "vac pans," little openings at floor level that can be turned on with a foot switch, so that crumbs and debris can just be swept into them without stooping.

All of the stone and tile floors are radiantly heated with hot liquid that runs through or under them, including the shower floors. The warmth extends into the garage and onto the front stairs, which are warmed by heated antifreeze activated by controls on the roof.

The 7-bedroom house has 51/2 baths, a 38-foot-wide lot, 1,000 square feet of deck and a 3-car garage. For information on this house or others, call (312) 368-5300.

spyguy

August 22nd, 2005, 08:04 PM

COOK COUNTY

Chicago--Central Station residential tower, 1337-1355 S. Michigan Ave., 260-unit residential tower, March 2006, $30 million.

Chicago--North Broadway apartments, 4400 N. Broadway, 78-unit apartment building, October 2005, $6 million.

Chicago--La Salle office tower, 29 S. La Salle St., 50-story office tower, May 2006, $17 million.

------------
:cheers:

BVictor1

August 23rd, 2005, 05:37 AM

Posted by Steely Dan in the Skyscraperpage forum

well, it looks i'm the person that's gonna win those covetted bonus points as i did a little on-line sluething this evening and found a rendering for the grand kingsbury project, along with a website that has some pretty good detailed info on the development. so another million skyscraperpage bonus points will be awarded to the first individual that can track down a height figure for this project.

here's the website:

http://hfflp.com/documents/1798/grand_kingsbury_flyer.pdf

and here's the rendering of the grand kingsbury:

http://skyscraperpage.com/gallery/data/500/6324the_grand_kingsbury.jpg

is it just me, or does this look like another SCB tower?

EDIT:
looking through the site further, i now see that SCB is indeed the architecture firm for this project. they're getting mighty predictable. i guess on the plus side, at least they're not predictably bad, this is still a pretty nice looking residential tower.

the rendering has now been added to the list on page 1.

https://extranet.emporis.com/files/transfer/6/2005/08/389889.jpg

spyguy

August 23rd, 2005, 05:47 AM

A nice treat indeed.

Chicago Shawn

August 23rd, 2005, 08:06 AM

The Walgreens at State and Randolph (MoMo site) will close for good on Friday the 26th. It had been in business at that site for 79 years.

September is going to be a great month!

24gotham

August 23rd, 2005, 03:24 PM

The Walgreens at State and Randolph (MoMo site) will close for good on Friday the 26th. It had been in business at that site for 79 years.

September is going to be a great month!

While it is no loss to see that location close, it is Walgreens oldest location still in operation (till Friday that is...)

Chi_Coruscant

August 23rd, 2005, 04:48 PM

Buh-bye, Walgreens!
Hello, MoMo!

geoff_diamond

August 23rd, 2005, 11:01 PM

Good fucking riddance!!!

Chicago Shawn

August 24th, 2005, 06:16 AM

Jefferson Tower is topped out....

http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp58%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E2323%3A59745985ot1lsi
http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp3%3Enu%3D3253%3E95%3A%3E5%3B7%3EWSNRCG%3D3232%3B4%3A654%3A79nu0mrj
http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp63%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E2323%3A59745979ot1lsi
Trucking away tower crane sections...
http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp3%3B%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E2323%3A5974597%3Aot1lsi
http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp47%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E2323%3A5974598%3Aot1lsi
http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp64%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E2323%3A59745983ot1lsi http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp63%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E2323%3A5974597%3Bot1lsi

Turned out a little better than I had expected, but still not a great looking building any means. I don't think the baby shit brown paint job will help either, but at least this will be a two-tone job instead of one monolithic color block like Admiral's Pointe, another Low-end-burg masterpiece. I do think though the balconies were executed nicely, they work well in this one and give the facades some depth, rather than completley detract from it IMO. On a positive note, the cannyonization of Lake Street and the Green Line is moving westward, and some much needed density is being added to the West Loop. :)

One more, a contextual shot from June...
http://images.snapfish.com/3447%3A7%3A%3B23232%7Ffp64%3Dot%3E2344%3D%3A4%3B%3D6%3A8%3DXROQDF%3E23239455%3A%3C984ot1lsi
This tower does add a nice little foothill in front of the mountain range. :)

BVictor1

August 24th, 2005, 02:48 PM

Central Station Project Gets 260 Condos
By Mark Ruda
Last updated: August 24, 2005 06:39am

CHICAGO-A vacant office building in the 1300 block of S. Michigan Avenue will be replaced by an $80-million condominium tower, the newest piece to the Central Station development. Central Station, LLC president D. Timothy Desmond tells GlobeSt.com his company expects to begin construction of the 32-story, 260-unit tower at 1335-77 S. Michigan Ave. next spring.

Desmond says units, which will average 1,300 sf, will likely sell in the $300 per sf neighborhood. That would be comparable to Museum Park Place, according to Appraisal Research Counselors’ second quarter “Residential Benchmark Report,” which notes second-quarter sales at the building at 1841 S. Calumet Ave. have averaged $323 per sf at 1,266 sf per unit. The Enterprise Cos. is building Museum Park Place.

Designed by Pappageorge/Haymes Ltd., the building will include 9,300 sf of ground-floor retail space as well as a 301-space parking garage in six stories. The retail space will be added to a S. Michigan Avenue inventory already is earmarked for at least three restaurants, according to testimony at a recent plan commission meeting.

After getting a plan commission endorsement, plans for the 350-foot building are expected to be considered next week by the city council’s committee on zoning. Meanwhile, Central Station, LLC must close on its purchase of the 24,207-sf site at the northeast corner of Michigan Avenue and 14th Street.

Another issue to be settled may be access to the parking garage, originally planned for 14th Street. However, the department of planning and development recommended garage access from an alley behind the building, says attorney John George, representing Central Station. Alderman Madeleine Haithcock has since suggested access from 14th Street.

Central Station, being developed by Cleveland-based Forest City Enterprises and Fogelson Cos., is in its 11th year of construction. “It gives me great pleasure to see how the development is unfolding,” says plan commission member Doris B. Holleb.

BVictor1

August 24th, 2005, 02:49 PM

Lincoln Property Adds 278 Rental Units to South Loop
By Mark Ruda
Last updated: August 23, 2005 07:50am

CHICAGO-Rather than another condominium building, a 278-unit multifamily rental building is slated for the southeast corner of 14th and State Street. “There’s a need for it,” Dallas-based Lincoln Property Co. senior vice president Brian Byrne tells GlobeSt.com.

Lincoln Property Co.’s $60-million project was endorsed recently by the plan commission, which also blessed construction of another 260 condominiums in the 1300 block of S. Michigan Avenue. The latter building is the latest addition to the massive Central Station project, which has fueled the South Loop development boom. Most multifamily buildings constructed or under construction are condominiums, however.

The one- and two-bedroom units will range from 790 sf and 1,075 sf, and are expected to command rents ranging from $1,600 a month to $2,000 a month. The two-parcel, 40,323-sf site is under contract, Byrne says, with a closing expected by the end of the year. Financing is in place, he adds, and the 22-month construction job is expected to begin early next year.

The 22-story rental building will have 4,000 sf of ground-floor retail space as well as a three-story, 195-space parking garage. In addition, Lincoln Property Co. is turning an 8,800-sf lot across 14th Street into a gated park for residents of the building, according to the department of planning and development.

“We’ve had a number of occasions to review this project,” says Near South Planning Board president and executive director Bonnie Sanchez-Carlson, voicing support for the building proposed for 1401 S. State St. “We appreciate the developer’s decision to re-evaluate the parking.”

Lincoln Property Co. has nine multifamily projects in the suburbs, including three in Naperville and two in Schaumburg. The company also has holdings in Bolingbrook, Villa Park, Willowbrook and Yorkville. The Villa Park property is the conversion of a former Ovaltine factory into 344 one- and two-bedroom loft apartments.

BVictor1

August 25th, 2005, 06:09 PM

Chicago's new downtown

August 25, 2005

BY DAVID ROEDER Business Reporter

The heart of Chicago pounds stronger than ever. You can hear it over the daily thrumming of Chicago life, amid the tourists scavenging North Michigan Avenue, through the 24-hour cycle of the Loop, to the new neighborhoods carved from freight yards and warehouses on the Near South Side.

Downtown hasn't had it so good in years, not since the 1920s. There were few cars then and little competition. The transit lines all went to the Loop, so why go anywhere else?

Today, the question for many Chicagoans is the same. Their banks, cleaners, favorite nightspots, college classrooms and dorms and, increasingly, homes, are downtown.

That's a lot to put in a tight space, so the result was inevitable: Downtown has burst its old boundaries.

Going downtown? In the 1960s, that meant the Loop and a few surrounding blocks.

Today, downtown can mean anywhere from Lincoln Park Zoo to McCormick Place. Based on a consensus of what experts say holds together as downtown, let's define it as stretching from Division on the north to Roosevelt on the south, and from the lake west to Halsted.

http://www.suntimes.com/special_sections/new_downtown/images/day1/300/day1_3a.jpg

You can crystallize the changes downtown in the appearance of two works of public art. The first came in 1967, when thousands of government payrollers, art-lovers and the merely curious gathered for what was a shining moment for the first Mayor Daley -- the unveiling of the Picasso sculpture in what was then called the Civic Center Plaza in the heart of the Loop. It was a huge morale boost for a downtown down on its heels.

Back then, jobs were following the migration to the suburbs, where ample cheap land awaited. State Street had lost its luster. Landmark restaurants like Fritzel's and the Blackhawk were still around, but business was sagging. At night, people fled downtown.

Today, the optimism about downtown is epitomized by an artistic coup engineered by the current Mayor Daley. It's The Bean -- formally known as Cloud Gate, but anyone who has seen it knows why its nickname has stuck. Not quite done but set to be unveiled Sunday, its appeal is its seamless refraction, pulling together observer, buildings, sky.

The Bean draws a happy picture of a 21st century city. But it misses a few details. In the expanded downtown, affordable housing is an exile. Jobs are leaving.

Jobs down, housing booming

The central business district -- basically the Loop -- is down toabout 187,000 private-sector jobs from 220,000 in 1991, according to a survey by the Illinois Employment Security Department. What job growth there's been has come in the expanded downtown, which, under the state's definition, reaches roughly to North Avenue, Halsted and Roosevelt. That outer business ring has 294,000 private-sector jobs now vs. 278,000 in 1991, the survey found.

Meanwhile, a hot housing market has developers converting antiquated office buildings into condos. New residential high-rises are planned for the tiniest swatches of open land. Any old factory near downtown seems a quaint survivor.

What got us here? A thousand decisions -- with a big assist from luck, natural forces and cheap money. It's not every city that has one of the world's great freshwater sources lapping at its limits. Also, Chicago has an engaged citizenry that even during the bad years supported museums and other downtown institutions.

Mayor Daley deserves a hand for planting flowers and turning the schools upside-down to win middle-class acceptance. Daley probably has a bigger role in downtown's renaissance than anyone. He's put his political capital into many areas, from aggressive use of city subsidies that spur new construction to long-term public works such as realigning Lake Shore Drive to create a Museum Campus, expanding the city's front yard.

Credit also goes to the late Mayor Harold Washington for bolstering city services. While Washington was mayor, developers expanded downtown office space by 40 percent, proving that business grew quite comfortable with Chicago's first black mayor.

A 'see-through' city?

Much more happened outside city government. Decades ago, risk-takers like Arthur Rubloff, Phil Klutznick and Ferdinand Kramer saw opportunity where others saw only slums. Investors today follow their examples, with low interest rates a wind at their back. The builders and the banks that finance them chase opportunities afforded by a huge market of baby boomers and their children who have decided city living is exciting and fashionable.

Appraisal Research Counselors Ltd. says almost 30,000 multifamily units -- owner-occupied or rental -- have been added to the area since 1990. Most have gone up since 1997, with downtown getting an average of 3,100 new housing units a year the last seven years.

High-rise dwellers downtown often complain about skyscrapers rising next door. A lot of that is over their lost views. But it points up questions about whether too much of a good thing is at hand. And, amid all the new housing -- downtown's population has grown nearly 50 percent since the 1970 census -- hangs the hard question of what kind of community the new downtown is becoming.

Real estate mogul Sam Zell has said Chicago is creating a see-through city. Look at a residential high-rise some weeknight, and see how few lights are on, or notice how the balconies are empty even on the warmest evenings. Many condos being built are unoccupied for long stretches. Market experts estimate that about 20 percent of downtown condo sales are to speculators who don't live in them but plan to "flip" them to another buyer. Others are sold to people who want a part-time city residence -- a place to crash after a night at the orchestra or a long day of billable hours. These buyers pay the same real-estate taxes as full-time residents, but their absence means there's less commerce on the streets below than meets the eye.

A civic group in the West Loop has begun a campaign to encourage residents to patronize local stores -- some of whose owners say sales have barely nudged upward despite massive growth in housing.

'Big boxes' in South Loop

The situation is better in the South Loop, where residents are seeing an explosion of big-box stores on Roosevelt Road, fast becoming the area's discount draw.

The regenerated downtown has had the biggest impact on business on State Street -- Chicago's new college town. A collection of schools in the South Loop brings thousands of students onto State Street, where stores now cater to them.

Nearby, people lounge on the lawn of the Millennium Park's Jay Pritzker Pavilion. From the bandshell there, your eyes wander to the Prudential Building, now overshadowed by its neighbors. In 1967, its height and views up and down the lakefront made it a place to thrill a little kid with its observation deck, now long since closed.

There are things about the old downtown some miss -- the Stop and Shop, Mayor's Row, a funky country bar called the R&R, the newsstand at Randolph and Michigan.

Making it last

Still, the downtown of The Bean has more to offer than what welcomed the Picasso. Start with the Museum Campus. Its creation gave the biggest boost to the lakefront since A. Montgomery Ward took on city fathers 100 years ago and gave us Grant Park.

In 1967, demographics were against downtown. Now, they're with it. More people choose to live near where they work and play. They are suburbanites who got tired of living too far of a commute away from things. Or their children have grown, and now they want to be near downtown's attractions.

No one knows how long downtown's upswing will last. Downtown has secured its appeal as a place to live; now, it will have to work harder on jobs, tricky because the onetime core of the local economy -- manufacturing -- is bleeding away.

It also will have to leave a place for the poor and middle class. The city's center has grown enormously. But will it have room for the oddball places, the bargain basements and the friendly neighbors that made city living attractive in the first place?

DOWNTOWN THEN . . .

Boundaries: Basically the Loop -- Lake to Van Buren, Wabash to Wells
Population (1970 census): 4,953

. . . AND NOW

Boundaries: Division to Roosevelt, Lake Michigan to Halsted
Population (2000 census): 16,388 for Loop; 70,137 for expanded downtown (up from 46,820 in 1970)

Downtown Chicago's Growth Plates
http://www.suntimes.com/special_sections/new_downtown/images/day1/plate_100b.jpg
http://www.suntimes.com/special_sections/new_downtown/images/day1/downtown.html

geoff_diamond

August 26th, 2005, 06:41 AM

This is from McGraw Hill Construction and ENR's weekly analysis of a particular building type. Looks like Chicago is the run-away victor in this week's chart (retail construction).

http://img231.imageshack.us/img231/2495/specgrph13uj.jpg

spyguy

August 26th, 2005, 06:47 AM

Damn, clear winner too.

BVictor1

August 26th, 2005, 08:25 PM

On today's State Street, hip, newer is theme

August 26, 2005

BY SANDRA GUY Staff Reporter

State Street is again a great street, but it's no longer the 1960s-era street for mid-America.

Now, it's dotted with retailers that aim to appeal to college students, office workers and the upscale residents of high-priced Loop condos.

Stores that thrived in the '60s and made it to the new century have changed to keep up, and many are struggling anyway. Marshall Field's now features luxury boutiques run by outside retailers. Carson Pirie Scott, draped in scaffolding, is trying to escape the demise of other mid-tier department stores. Sears struggles to compete with hip, newer neighbors such as H&M, Forever 21 and Nordstrom Rack, as well as State Street staples like Field's, Carson's, Old Navy and Filene's Basement.

The 79-year-old Walgreens drugstore at 151 N. State St. -- the longest continuously operating store in the Deerfield company's chain -- will meet the wrecking ball at the end of this year, disappearing to make way for a luxury high-rise condo tower. Even after the oldest store is demolished, four Walgreen stores will remain on the iconic downtown street.

A Central Loop tax-increment financing district provided the impetus for the student housing, condo buildings and richly renovated theaters downtown that caught retailers' eye.

Gone are all but one wig shop, and several low-priced clothing stores are expected to give way to tenants that can pay higher rents.

A project to paint and dramatically light the L tracks on Wabash Avenue next year should boost retail prospects, too.

In the '60s, North Michigan Avenue -- the Magnificent Mile -- had high-end retail names like Bonwit Teller and I. Magnin's to go with architectural gems such as the Wrigley Building, the Water Tower and Fourth Presbyterian Church, though it wasn't until 1970 that the John Hancock Center opened.

The national chains that are such a part of the fabric of Boul Mich now -- Bloomingdale's, Neiman Marcus, Saks Fifth Avenue and Cartier -- to name just a few -- are relatively recent additions. Tourists, shoppers and weekend visitors boosted the city's retail sales to $2.2 billion last year in the Loop and the Magnificent Mile combined. That compares with a mere $817.4 million in 1967 in the greater Loop area stretching south to Roosevelt Road.

Nameplates have come and gone, just as fashions change. But some things keep coming back. Just take a look around: You'll see plenty of hip-huggers, again.

Then, 1969
http://www.suntimes.com/special_sections/new_downtown/images/day2/day2_mad1.jpg
Pedestrians pass under the large corner clock at State and Madison. (SUN-TIMES LIBRARY)

Now, 2005
http://www.suntimes.com/special_sections/new_downtown/images/day2/day2_mad2.jpg
Today's northbound view shows the addition of landscaping. (JOHN J. JIM/SUN-TIMES )

Then, 1965
http://www.suntimes.com/special_sections/new_downtown/images/day2/day2_state1.jpg
Pawn shops and peep shows lined the 400 block of South State Street in December 1965.

Now, 2005
http://www.suntimes.com/special_sections/new_downtown/images/day2/day2_state2.jpg
The '60s stores have made way for the Harold Washington Library of today. (JOHN J. KIM/SUN-TIMES)

BVictor1

August 26th, 2005, 08:26 PM

DOWNTOWN THEN . . .

August 26, 2005

Some snapshots comparing downtown Chicago by day in the Picasso era and today's age of "The Bean":

THEN:
Tallest building: Civic Center, known today as the Daley Center (648 feet)
Lunch at the Berghoff (wiener schnitzel): $1.50 (1967)
Beer at the Berghoff: 30 cents a glass of Berghoff beer, 35 cents a stein (1967)
Jobs: 477,499 (1984 -- oldest data available)
Cost of an L ride: 30 cents
Cost per square foot of office space: $5 to $7
Average apartment rent: $400 to $700

. . . AND NOW

Tallest building: Sears Tower (1,450 feet)
Lunch at the Berghoff (wiener schnitzel): $12.95
Beer at the Berghoff: $3.50 a glass of Berghoff beer, $3.75 a stein
Jobs: 481,875
Cost of an L ride: $1.75
Cost per square foot of office space: $10 to $26
Average apartment rent: $800 to $2,000

Then, 1960s
The Prudential building dominates the scenery in this photo of the pre-Millennium Park area. (CHICAGO HISTORICAL SOCIETY )
http://www.suntimes.com/special_sections/new_downtown/images/day2/chi_before_mil_park.jpg

Now, 2005

http://www.suntimes.com/special_sections/new_downtown/images/day2/mil_pk_now_randolph.jpg
Greenery dots the Millennium Park landscape along Randolph Street. Eight acres are peppered with a variety of trees. (TOM CRUZE/SUN-TIMES)

Then, 1969
http://www.suntimes.com/special_sections/new_downtown/images/day2/madison_skidrow1969.jpg
The notorious ''Skid Row'' can be seen in this shot looking west down Madison Street. (AP)

Now, 2005

http://www.suntimes.com/special_sections/new_downtown/images/day2/madison_now.jpg
Madison is a commercial corridor today. (TOM CRUZE/SUN-TIMES)

Frumie

September 1st, 2005, 01:09 AM

Commercial Real Estate News

Downtown Condo Conversions on Record Pace

By Mark Ruda of GlobeSt.com

Tuesday, August 30, 2005 - CHICAGO-The Downtown multifamily market is seeing a record year for condominium conversions, with the pace triple the level typically seen, according to Appraisal Research Counselors. The firm’s “Residential Benchmark Report” puts the number of converted units so far this year at nearly 3,000, with nearly half of them sold, and projects the total to hit 3,893 by the end of the year.

The Downtown area saw just 652 rental units converted to condominiums last year, according to the firm, with the average being about 1,000 since 1991. The previous high-water mark was the 1,881 units converted in 2001, Appraisal Research Counselors says.

“Interestingly, many of the recent conversions have included the newest, most luxurious and well-located rental buildings, which have been constructed in the past five years,” according to the report, co-authored by vice presidents Gail L. Lissner and Ron DeVries. “With this type of new inventory on the market, the price levels of conversion product are now very close to many of the new construction projects in the market.”

Fitting that profile are the 254-unit 2 E. Erie, the 480-unit Park Millennium, the 283-unit west tower of Grand Plaza and 452-unit 400 N. LaSalle St. Units in the latter two buildings are priced above $400 per sf, according to Appraisal Research Counselors.

Also undergoing conversions are the 505-unit North Pier Tower at 474 N. Lake Shore Dr., 133-unit 2625 N. Clark St., 468-unit 10 E. Ontario St. and 398-unit 1400 N. Lake Shore Dr. Other possibilities, though, are 222 E. Pearson St., 700 S. Federal St. and 1140 N. LaSalle St., which also changed hands this summer, the report notes.

spyguy

September 4th, 2005, 07:00 PM

Record price in Buck deal
New office tower at 111 S. Wacker shows market's hot

By Alby Gallun

Developer John Buck is close to selling a recently built Wacker Drive high-rise for more than $400 a square foot, which would set a new price record for downtown office buildings.

An unidentified German investor has agreed to pay about $410 a square foot, or $410 million, for the 1-million-square-foot skyscraper at 111 S. Wacker, according to people familiar with the transaction. The building was completed in June and cost about $280 million to build.

Certain provisions in the contract could shift some leasing costs to Buck, lowering the effective price, but it is still expected to top a record set 15 years ago when a Japanese insurer paid $369 a square foot for the 50-story office tower at 181 W. Madison St.

While occupancy rates are the lowest they've been in more than a decade, office building prices have soared the last few years as investors, unimpressed by low bond yields and a weak stock market, have poured money into real estate.

Landlords are capitalizing on the opportunity to cash out. Prentiss Properties Trust of Dallas recently reached a deal to sell its 30-story building at 123 N. Wacker for about $173 million, or $320 a square foot (Crain's, Aug. 29), and trophy properties including 311 S. Wacker and 181 W. Madison are back on the market after changing hands only three years ago.

German investors have been especially aggressive buyers of Chicago office buildings in recent years. A real estate arm of Deutsche Bank A.G. bought the building at 1 North Wacker in late 2002. Deutsche Bank is not buying 111 S. Wacker, a source says.

Others active in Chicago include Jamestown, a German syndicator, which has been scouting for office acquisitions; Estein & Associates USA Ltd., which represents US Treuhand, a German investment fund that owns a majority stake in two downtown office buildings, and Atlanta-based West Wind Capital Partners, which owns stakes in two downtown high-rises. Representatives of Jamestown and Estein say their firms are not buying the Buck building; a West Wind executive did not return a phone call.

"(German investors) still view Chicago as a tremendous investment opportunity relative to other parts of the world," says John T. Murphy, executive vice-president of Chicago-based MB Real Estate Inc.

Executives at John Buck Co. did not return phone calls.

Launched in 2002 and owned by an investment fund run by John Buck Co., 111 S. Wacker, a 51-story skyscraper, is about 80% leased.

http://***************************/random/og090505e.gif

http://chicagobusiness.com/cgi-bin/news.pl?id=17674

The Urban Politician

September 5th, 2005, 08:17 AM

From the Near West Gazette. I've never heard of the development in bold:

By Marie Balice Ward

(9/2/05) - Three major new developments, literally next door to each other, will irreversibly change the look of State Street in the South Loop area.
Parking lots and unkempt property will be replaced with mid-rise and highrise condominium buildings. Buyers of these new residential units to date are empty nesters relocating from the suburbs, young professional couples, and suburban dwellers seeking city weekend housing.

One Place Condominiums
One Place Condominiums will be a ten-story mid-rise at the corner of 8th and State Streets. Deeded parking will be available for each residential unit along with a public parking garage that will not be visible from State Street. There will be no investment garage space ownership (individuals will not be allowed to buy extra parking spots as an investment), said sales director Judy Walton.
Residential units will be situated on floors three through ten. The other floors will feature retail and commercial space and a 40,000 square foot, 24-hour Xport Fitness club with a three-story climbing wall, among other features.
Groundbreaking is scheduled for this winter, with occupancy anticipated in June or July 2007.
One- and two-bedroom units range from $159,000 to $299,000, with size ranging to slightly more than 1,000 square feet. One-bedroom-plus den penthouse terrace units start at $300,000, and two-bedroom, two-bath penthouse terrace units begin at $334,000. Balconies also are featured, and building amenities besides the health club include a recreation room, bike storage, and storage lockers.
Within the first five weeks of sales, the building was 85% sold. It is a development of One Place Condominiums, LLC, with Caccia-toreHarper as exclusive broker. The architect is FitzGerald Associates Architects.

Astoria Towers Residences and Spa
A 30-story art deco highrise, Astoria Tower will rise at the northeast corner of 9th and State Streets. Development cost is estimated at $80 million for 241 condominiums with a full-time concierge. As with One Place Condominiums, the architect is FitzGerald Associates Architects.
The building will feature a stepped design with curved bay facades on the east and west sides. The units will have floor-to-ceiling windows with nine-foot ceilings.
Prices for the units, which will start at 574 square feet in size, will be about $170,800 for a studio to $899,800 for the largest three-bedroom penthouse. No more than nine units will occupy each floor.
The residents-only spa will be located in 12,261 square feet on the tenth floor and offer a swimming pool, exercise room, herbal therapy room, salon, men’s and women’s changing rooms, and two landscaped terraces.
Other building amenities will occupy nine floors and include a business center and conference room, billiard and recreation room, library, golf simulator, and private viewing movie theater. Parking for 244 cars on levels one through nine also will be included.
The Frankel & Giles sales office at 9th and State Streets will open on Saturday, Sept. 17. A temporary sales office located at 1530 S. State St. already has secured more than 60 sales, said sales manager Jim Psyhogios. Groundbreaking is scheduled for June 2006.

Third development
The developers who created the nearly sold out State Place on the former site of the State and 11th Street Police Headquarters building are creating a mixed use condominium development at the southeast corner of 9th and State Streets. The property had long been owned by the City, which had issued a request for proposals for development.
Yet unnamed, this new structure will contain 230 units. It is a development of Northern Realty, Near North Partners, Magellan Develop-ment, Mesirow Financial, and the Canyon Johnson Urban Fund.
Michael Tobin, managing principal of development for Northern Realty, said the partnership will submit its plans for approval by the City Council sometime this fall and already has shown the plans to several community groups. “We are very excited about this project,” said Tobin, noting it may combine a highrise, a mid-rise, and loft units with about 20,000 square feet of retail space along State Street.
While particulars including floor plans and price ranges are in the planning stages, the developers do plan to feature a landscaped roof garden about one-half acre in size, a business center, a library, and community room and entertainment center.
Groundbreaking is expected to take place in about 12 to 15 months, subsequent to City Council approval. A sales office is likely to open in spring 2006. Northern Realty will be the marketing agent.

spyguy

September 5th, 2005, 08:49 AM

^^Have to keep an eye out for that one.

Chi_Coruscant

September 5th, 2005, 05:21 PM

New look in market for condos
Former rental units are competing with new construction
By John Handley
Tribune staff reporter
Published September 5, 2005

The biggest wave of condominium conversions in 25 years has hit Chicago's already hot downtown residential market.

But its effect on a market with thousands of new-construction condos coming onstream is uncertain. While the role of condo speculators worries market watchers, downtown sales are running at a record pace.

"Condo conversions are way up. We could total more than 4,000 this year," said Gail Lissner, vice president of Appraisal Research Counselors, a Chicago firm that tracks downtown residential sales.

Lissner said the rate of conversion from rental apartments to condos is more than four times the annual average over the last 15 years. "This is the best year for condo conversions since 1979," she added.

As evidence gathers that the nation's housing market may be in line for a change, condo conversions offer advantages: to current tenants, price discounts; to apartment building owners, top dollar for high-quality rental buildings because developers can get in on the currently low interest rates and offer a product that is available now.

Converters can count on 20 percent of their buyers coming from tenants' ranks, according to James Kinney, president of Rubloff Residential Properties in Chicago.

Dennis Flynn has been renting since 1994 at 474 N. Lake Shore Drive, formerly known as North Pier Tower. But now that the 51-story building, constructed in 1990, is going condo, he has decided to buy.

"The price was right compared to other condos in the area," said Flynn, a trader at the Chicago Board of Trade.

"The location is great. We bought two units on the 16th floor and are combining them. My wife is picking out the finishes now," Flynn said.

Rubloff's Kinney says that some conversion tenants who buy "then flip their unit at a profit because of the discount. Investors who buy conversion units may immediately rent them back to the current tenants."

Though conversions are attractive, new construction still dominates, Lissner said, with 2,921 units announced in the first half of this year.

But downtown condo conversion units total 2,105 so far this year, and one developer sees some problems as a result.

"Apartments built in the last five years that are now being converted pose competition for new condos under construction in some parts of downtown," said Alan Lev, president of Belgravia Group, developer of two condo towers planned for 600 N. Lake Shore Drive.

"The conversions have the advantage of delivery time and the ability of buyers to see the units. For apartment building owners, the real bang is to sell or convert themselves," Lev added.

Lissner contends, however, that the surge in conversions will not result in a glut of units downtown. "The current sales rate shows the market is absorbing the units," she said.

Larger, pricier

Conversions are not competing against resale units, she said. "The bulk of condo conversions are in buildings less than 5 years old. This product is larger, pricier and more luxurious than older resale units."

While Lissner maintains that downtown Chicago is headed for a banner year in residential sales, her firm's second-quarter report warns: "Despite the euphoria over the sales results for 2004 and now for 2005, risks remain." These include artificially inflated demand by speculators, increasing construction costs, a lack of sizable job growth in the city and a large number of unit deliveries in a rising interest rate environment, the report said.

The number of downtown apartments converting to condos says a lot about strong demand but also about the market forces that are prompting building owners to take their profits now.

"In today's [national] housing boom or bubble--whatever your take--anything that's not moving is being turned into a condo," said John McIlwain, senior fellow for housing at the Urban Land Institute, a think tank based in Washington, D.C.

"The rental market has been soft and doesn't pay off, so apartment buildings are being sold to condo converters, who have been paying skyrocketing prices. This is happening in strong housing markets, like Chicago," McIlwain said.

But he cautioned that nationally "we may start to see a cooling off in the course of the next year, including an increase in inventory [of homes] and longer times on the market.

"Everyone would pay attention if mortgage interest rates would go way north of 7 percent," he said.

Whatever the short-term outlook, though, he sees the demographics to support a strong condo market in the future. "The move to condos is a long-term trend for the next five to 10 years," McIlwain said. "Boomers and empty-nesters are moving into the city. The pull of city living is very attractive."

So, the conversions continue. "Real estate investment trusts are net sellers of apartment buildings because prices are so high," said Steven Blank, senior fellow for finance at the Urban Land Institute.

"It's definitely a frothy market for buying apartment buildings," he said. "The condo converters believe they can take advantage of today's low interest rates by bringing the product to market quickly. The quickest way is condo conversion."

Exit strategy

As Lissner put it: "Now every developer is building [rental] apartments with the exit strategy of condo conversion."

One reason for apartment building owners to sell now is that "they don't want to miss the market," said John McLinden, partner of Centrum Properties Inc., a Chicago firm active in both condo conversions and new-construction condos.

Centrum and MCZ Development Corp. are converting the 52-story Park Millennium at 222 N. Columbus Drive, and two-thirds of its 480 units were sold in 90 days. "We had expected a three-year sellout, but now we're projecting 12 months," McLinden said.

While some developers are cautious of speculators, McLinden said they serve a useful purpose: "They help seed the project and get developers and bankers comfortable."

He maintains that condo conversions serve a different buyer than new condos.

"Conversions are for buyers with an immediate need, not for people who can wait two years to move in, like empty-nesters," he said.

Though Bob and Trudy Hull chose a conversion, rather than new construction, they are making their condo like new, with new cabinets, plumbing, appliances and wood flooring.

"We wanted to take advantage of Chicago and use it as escape," said Bob Hull, who with his wife bought a two-bedroom at Park Millennium.

He will retire from a foundry business in La Porte, Ind., in December, and the couple will maintain their permanent residence there. They plan to use their Chicago apartment at least twice a month for three or four days at a time, he said.

"We knew what we wanted after looking at eight or 10 existing or under-construction condos," Hull said.

Not all condo conversions are in relatively new apartment buildings. Also adding to the large pool of available conversion units are aging office buildings that are being adapted for residential. These include such prominent structures as the Palmolive Building on North Michigan Avenue and the former Wards headquarters on West Chicago Avenue.

And those numbers may increase, according to Brent Ryan, co-director of the City Design Center at the University of Illinois at Chicago.

"The new Class A offices being built in the west side of the Loop will pull tenants out of other buildings," he said.

"Since the office market already is weak, that will leave old Class C buildings as almost non-starters as offices, but possible for residential conversion," he said.

The converter of the vintage office building at 310 S. Michigan Ave., near Millennium Park, believes the residential market in downtown Chicago has strong legs.

"The debate is between those who believe we're in a boom-bust real estate cycle and the music will stop at some time and those who believe lifestyle choices are creating a back-to-the-city movement," said Louis D'Angelo, president of Metropolitan Properties.

"There's no bubble in Chicago. There's a steady absorption of residential units," D'Angelo said.

He predicted that demand around Millennium Park will outstrip supply in the next three to five years. "This will be the hottest submarket in the city," he said.

"These vintage properties," he said, "are clearly desirable for residential because of the guaranteed views of the park, harbor and the lake."

BVictor1

September 6th, 2005, 02:09 PM

Attention Shoppers: Field’s A Landmark
By Mark Ruda
Last updated: September 2, 2005 11:12am
http://www.globest.com/newspics/chi_statestreetmarshallfields.jpg

(For more retail coverage, click GlobeSt.com/RETAIL.)

CHICAGO-Even though it has changed hands three times in recent years, and the name of the long-time retailer could change as well, the Marshall Field’s store at 111 N. State St. will stay pretty much the same, right down to its signature clock and name. While a city commission Thursday recommended landmark status for the property now owned by Federated Retail Holdings Inc., 42nd Ward Alderman Burton Natarus thinks he has a way to keep the Marshall Field’s name from becoming extinct.

“The name Marshall Field’s is so synonymous with Chicago,” Natatus says. “I hope we put a plaque on all four corners of the building. That should be a message to the corporate hierarchy.” The Marshall Field’s name is in jeopardy as a result of the flurry of retail takeovers.

The nine-story, 1.6-million-sf building takes up an entire city block bounded by State, Washington and Randolph streets as well as Wabash Avenue and the overhead Chicago Transit Authority elevated tracks. The designation, recommended Thursday by the commission on Chicago landmarks, includes restrictions on altering exterior and interior elements such as an iconic clock at State and Washington streets as well as two interior atriums, one of them traditionally used to house a tall tree during the holiday shopping season.

“Chicagoans have been meeting under the clock since 1897,” says Heidi Sperry of the city’s department of planning and development. The clock was memorialized by a Norman Rockwell painting that graced the front of the Saturday Evening Post in 1945.

Attorney Rick Wendy, who has represented Target Corp., May Co. Stores and now Federated Retail Holdings in discussions with the department of planning and development, says the new owners consented to the landmark designation, which restricts changes to the building. The flagship store changed hands in a $39.2-million deal last year, according to property records.

“We have worked with Heidi Sperry and Brian Goeken over a period of many months, and both of them are among the best representatives the city has working with property owners,” Wendy says. “We’ve had our differences, and they stick to their guns, but they know how to deal with property owners.”

QuebecCity

September 7th, 2005, 01:40 AM

what a pretty building, i love it :P

wickedestcity

September 7th, 2005, 03:51 AM

awsome ! whatever helps to keep Marshall Fields ....Marshall Fields!

urbanqueen

September 7th, 2005, 04:05 AM

That's what's so great about this city. They no a good piece of architecture when they see one.

The Urban Politician

September 7th, 2005, 04:30 AM

That's what's so great about this city. They no a good piece of architecture when they see one.

^They "no" a good piece of architecture? :)

Know way!

urbanqueen

September 7th, 2005, 04:57 AM

oops! I can't believe I did that. Well you know what I meant. :runaway:

Chi_Coruscant

September 7th, 2005, 02:26 PM

Buyer Plans Fine Dining At Landmark LaSalle St. Building
By Mark Ruda (www.globest.com)
Last updated: September 7, 2005 05:58am

CHICAGO-The next owner of a River North building plans to open a “three- or four-star restaurant” on the ground floor, with office tenants likely to be sought for the upper two stories. Jonathan Lee hopes to close on his purchase of the Veseman Building at 442-44 N. LaSalle St., which has been marketed at $2.25 million, later this month.
Built in 1880 and renovated in 1930, the 7,000-sf building was one of seven Chicago structures on Preservation Chicago’s “endangered buildings” last year, says group president Jonathan Fine. The façade is in the relatively short-lived Art Deco style, Fine says, as well as terra cotta. With new owner Lee’s support, the commission on Chicago landmarks recommended its designation to the city council Thursday.

“One of the reasons we liked the building was its Art Deco style,” Lee tells GlobeSt.com after the commission on Chicago landmarks recommended landmark status for the building. Another reason was more financial, but already appears to be a sticking point. The building comes with a rooftop sign, which will continue to provide an income stream, notes architect Lonn Frye.

“I think this is a very unusual building. You won’t find very many like it,” says 42nd Ward Alderman Burton Natarus. “But I’d like to get rid of that hideous sign.”

However, the revenue from the billboard atop the building was factored into his purchase price, Lee tells GlobeSt.com. “It’s difficult for that sign to go away,” he adds.

The building has been vacant while his company has been marketing it, says Millennium Properties Inc. associate Gregory O. Block, but most recently was occupied by a photographer and a spa. Previous users included an asbestos products operation, according to the department of planning and development.

The Urban Politician

September 8th, 2005, 03:39 AM

oops! I can't believe I did that. Well you know what I meant. :runaway:

yeah, I know what you meant. Meri ladoo

geoff_diamond

September 9th, 2005, 08:08 AM

Took a couple of snapshots this afternoon; thought I'd share.

Prentice (topped out) as seen looking east from Chicago and Wabash.
http://img307.imageshack.us/img307/2337/prentice013yb.jpg

Loyola student center looking east down Pearson.
http://img307.imageshack.us/img307/2969/loyola18rf.jpg

Looking up at the Loyola building from Wabash and Pearson.
http://img307.imageshack.us/img307/6186/loyola26ws.jpg

The Urban Politician

September 9th, 2005, 09:50 AM

^Thanks for the pics!

That's a nice little highrise urban streetwall forming along East Chicago Avenue.

I just wish there would be more of one west of State St, where there are still a few parking lots

spyguy

September 13th, 2005, 02:20 AM

NEW CONSTRUCTION

Published September 12, 2005

The following construction projects are coming up for bid. Listings include project city, name of project, address, description, start date and project value. Complete bidding details and contact information can be found at BidClerk.com.

COOK COUNTY

Chicago--Staples, 700 W. Jackson Blvd., 23,539-square-foot retail building, November 2005, $1.5 million.

Chicago--North Clybourn Avenue affordable housing, 1234-54 N. Clybourn Ave., 96-unit mixed-use building, November 2005, $13.8 million.

Chicago--North LaSalle Street office tower, 300 N. LaSalle St., 60-story office tower, April 2006, $400 million.

spyguy

September 13th, 2005, 02:23 AM

New CSX depot — or two — could employ 1,000 south of the city

By Bob Tita

CSX Transportation Inc. is planning a major expansion of its freight operations in the Chicago area, a move that could mean hundreds of new jobs in the industrial belt south of the city.

"There are active talks with developers to do something," says Thomas Livingston, vice-president of state relations for the railroad operator.

Mr. Livingston says Florida-based CSX is eyeing possible sites in either the far south suburbs, Northwest Indiana or both.

Depending on the scope of the project, the railroad could decide to build two freight centers — one in Indiana to serve CSX's main route to New York and one in the south suburbs to serve its routes to the Southeast and Florida. Or the company may opt to build a single massive hub for all its routes.

'BIG DEAL' FOR THE REGION

Illinois may have given itself an advantage with a new tax-increment financing program for rail yards. The legislation, signed by Gov. Rod Blagojevich at a CSX rail yard in Riverdale last month, allows developers to divert property tax increases on new yards to cover their infrastructure costs.

Each new intermodal terminal would create an estimated 200 to 300 railroad jobs, plus perhaps 500 to 800 additional jobs in equipment leasing, maintenance, trucking and other businesses. Giant warehouses are often built next to intermodal yards. The CenterPoint Logistics Park in Elwood, one of the area's largest intermodal centers, has 1,086 workers in railroad, warehousing and other jobs.

"It's a big deal for the entire region," says Lee Clair, a senior partner at Massachusetts-based transportation consultancy Norbridge Inc. "The impact on the local economy would be significant no matter which side of the state line it's on."

CSX already has about 1,000 employees spread around rail yards in south suburban Riverdale and Bedford Park and at 59th Street on the Southwest Side. The Bedford Park intermodal terminal is one of the largest in the area, lifting as many as a million semitrailers and shipping containers on and off trains in a year. The company doesn't plan to close any of its existing rail yards.

SITE CHOICE IMMINENT

Mr. Livingston says the company might choose its new site this month, as well as a developer, although he declines to say with whom the railroad is talking. Industry sources say Oak Brook-based CenterPoint Properties Trust and Indianapolis-based Duke Realty Corp. are the likely developers. Neither company would comment.

CSX isn't revealing specific locations its considering. But the project is expected to take up several hundred acres. Mr. Livingston says the railroad is focusing on the south suburbs where CSX has a track right-of-way that leads to an ocean port in Jacksonville, Fla. Among the sites being scouted in Indiana is a former arsenal south of LaPorte.

http://chicagobusiness.com/cgi-bin/news.pl?post_date=2005-09-12&id=17729

spyguy

September 13th, 2005, 02:27 AM

September 12, 2005

BY ANDREW HERRMANN Staff Reporter

The Field Museum opens a $65million addition today -- but most folks will never see it.

Not from the outside: It's buried underground to preserve the look of the 84-year-old neo-Classical Field building.

Nor from the inside: the 186,000-square-foot expansion will serve as the museum's storage closet, housing 2 million off-display artifacts.

There may be nothing sexy about the Collection Resource Center -- even its name seems as dry as dust -- but the CRC has Field employees feeling A-OK. Along with miles of shelves and drawers, the center includes 10 new state-of-the-art laboratories for Field researchers and visiting scientists.

"They're champing at the bit to get in here,'' said Scott Demel, navigating the labyrinthine space recently. Demel, a 42-year-old anthropologist, archeologist and former Schaumburg village planner, heads the project that included not only construction of the building but also inventorying, cleaning, cataloguing and moving the 2 million pieces.

Relocation could take four years

Unlike your typical homeowner, who, before a move might weed through the attic and toss out the old lamps and the 64k computers, Field scientists kept everything -- and were pleasantly surprised to find things they didn't know they had. Nothing earth-shattering, said Demel -- Pacific island bracelets and turtle shell combs collected in the late 1800s, for example, were shoved in the back of a drawer.

Field employees are doing most of the moving -- a relocation that could take as long as four years. "It'll be a daily march for some time to come,'' said Demel.

Using specially designed carts with pneumatic shock absorbers, workers in recent days could be seen ferrying small items like fossils and dinosaur bones. A professional moving company lugged the larger jewels, such as the 2,000-pound, 2,500-year-old burial vaults from ancient Etruria and the thick, heavy Indian totem poles.

Philip Willink, collections manager for the fish division, carefully placed bottles of specimens on shelves in the new facility -- careful not to drop them but also to put them exactly where they belong. With 130,000 jars of fish, "if we put one on the wrong shelf, we may never find it again.''

Skeletons of fish were quick frozen to kill any microscopic bugs that may have been lingering before being moved to new drawers, Demel added.

Currently, the fish collection is in three different spots in the original museum. Now, they'll be consolidated and in a safer place: the fish are "pickled' in a highly flammable 70 percent ethyl alcohol solution. Sensors in the floors will detect any leaks and specially sealed lights make the room "spark proof.''

Portion may open to public

Elsewhere, a fire-suppression system can drop the temperature in some rooms low enough to snuff flames rather than use water, which would damage the artifacts.

While the two-story CRC is mostly off limits to the public, a portion of it will be open for tour groups, said Demel. A small exhibit area will be available to display favorite items of curators that don't quite fit into exhibits.

"It might be cannons or spears or shrunken heads or whatever,'' said museum spokesman Greg Borzo.

With 23 million objects at the Field, "whatever" is an understatement.

BVictor1

September 13th, 2005, 04:55 PM

IBM tower set for an upgrade
$130 million may help retain tenant Jenner

By Thomas A. Corfman
Tribune staff reporter
Published September 13, 2005
http://www.chicagotribune.com/media/thumbnails/blurb/2005-09/19445036.jpg

Prime Group Realty Trust is planning a massive $130 million renovation of One IBM Plaza, a critical part of its bid to retain the riverfront icon's largest tenant, Jenner & Block LLP.

The Chicago-based real estate investment trust hopes to inject new life into the 52-story tower, which was designed by Mies van der Rohe and built in 1971. Jenner has been testing the market for a possible move and is expected to make a decision sometime this month, when it could become the latest large Chicago law firm to opt for a new tower.

"IBM Plaza has qualities you can't get in a new building," said Jeffrey Patterson, Prime Group's president and chief executive, citing its large plaza and classic design. "And we can make it better than a new building."

Prime Group's renovation plans come after talks broke down with Mesirow Financial, which had considering participating in the redevelopment by taking IBM Plaza's lower floors and the building's naming rights.

Ironically, many rival landlords, ordinarily fierce competitors, are rooting for Prime Group, seeing another new office skyscraper as the last thing the downtown market needs.

"How do we get any traction in the rest of the market if all of these buildings keep getting built?" said Samuel Delisi, senior managing director of assets services with real estate firm CB Richard Ellis Inc.

Donald Resnick, the Jenner partner handling the search, declined to comment on the final choices. But sources say that in addition to renewing its lease, Jenner's options are:

- Co-anchor with Mesirow a new office tower that the Chicago financial-services firm would develop. That tower would be on a vacant lot at Clark and Kinzie Streets, across the street from Mesirow's existing headquarters at 350 N. Clark St.

- Become the lead tenant in a new skyscraper on a site at 155 N. Wacker Drive proposed by John Buck Co. Sources say the Chicago development firm has already held talks with New York investment bank Morgan Stanley about financing the tower, which would replace an antiquated office building.

"Key factors for us are economics, location and the quality of the building," Resnick said. "There are certainly differences in the economics between the three [options], but that in and of itself will not be determinative."

Jenner has about 340,000 square feet under a lease that runs until 2010. The firm pays about $40 a square foot in total rent, including taxes and operating expenses, according to a Prime Group filing with the Securities and Exchange Commission. Base rent, the portion that goes into the landlord's pocket, is about $25 a square foot.

Renewing at IBM Plaza would likely be the lowest-cost option for the law firm, though the extent of the savings could not be determined. But Jenner would have to move, floor by floor, to temporary space in the building, a potential drawback.

Resnick said Jenner will not be influenced by its rivals, many of whom have opted for new towers. They include Mayer, Brown, Rowe & Maw LLP, Sidley Austin Brown & Wood LLP and Kirkland & Ellis LLP.

But recruiting is a key issue for law firms, said tenant representative Steven Stratton, who advised Kirkland in its plans to move to a proposed tower at 300 N. LaSalle St. from Aon Center, 200 E. Randolph St. "The three big dogs are all going to have brand-new space," he said.

Mesirow initially presented its plans for a new River North tower to Jenner before considering moving to IBM Plaza. But the financial-services firm has nearly eliminated that option.

"There are all kinds of mechanical and renovation issues," said Mesirow Chief Executive James Tyree.

His proposed tower is "a much more personal building," he said.

At IBM Plaza, about half of Prime Group's $130 million renovation budget would go toward replacing some of the structure's basic building systems, such as elevators and heating/air conditioning, as well as asbestos removal, Patterson said. With landscaping, the building's ample plaza would be made more pedestrian friendly.

But a renovation will not help IBM Plaza's lake views, which will be mostly obstructed by Donald's Trump 92-story condominium/hotel tower that is under construction across the street at 401 N. Wabash Ave. Even so, those views are better than the ones in new towers on the drawing boards, Prime Group says. The costly project would target about 40 percent of the office space in the 1.4 million-square-foot structure, with the remaining space renovated in later stages.

The first phase would include the upper floors, where Jenner is located, and the lower floors, now occupied by the namesake computer company. IBM Corp. is downsizing and moving to 71 S. Wacker Drive, a new tower.

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tcorfman@tribune.com