Construction is set to commence at the former Chicago Spire site at 400 N. Lake Shore Drive in Streeterville, which has lay dormant financially for several years. The current owner, Related Midwest, obtained the site through bankruptcy court in 2014 and recently announced plans to initiate a two-tower design crafted by Skidmore, Owings & Merrill. The city sanctioned these plans in 2020, reports the Chicago Sun-Times.
The ex-Chicago Spire, designed by Santiago Calatrava, was originally intended as a 2,000-foot-tall condo tower. Remaining from the project, however, is only a 76-foot-deep foundation, dug out prior to a financial crisis hiatus in construction in 2008.
The replacement SOM plan takes inspiration from traditional Chicago buildings, opting for a two-tower design instead of the spire. Standing at 840 feet or 74 stories, one of the towers will house 635 rental apartments. Aiming to finalize the first tower by the third quarter of 2027, the executives at Related Midwest plan on starting construction within 45 days.
Despite concerns regarding the pandemic's effect on city living demand, and inflation influencing developer decisions on new projects, Related Midwest presses on. Acknowledging this bold initiative, Nick Millot, vice president at Related Midwest, said they will be amongst "the few cranes in the city of Chicago over the next few years," according to the Chicago Sun-Times.
Financing appears secure for the project, with the Illinois Housing Development Authority finalizing a $510 million package, comprised of tax-free and taxable bonds. However, construction on the second tower, approved at 765 feet with 500 rental units, could still be several years away, notes CoStar News.
The construction project lacking downtown could benefit from the project, reasons John Murphy from Murphy Real Estate Services. He said, "It's a great site, and they're showing very high rents there. You can rationalize this." Murphy is not part of the project. A push by the Illinois Housing Development Authority for affordable housing will see 20% of the first building's 635 units reserved for low-income renters, as reported by CoStar News.
The development committee for the Streeterville Organization of Active Residents, Gail Spreen, has signaled approval for the project's affordability component. In hopes of attracting medical staff working in the vicinity, Spreen believes many could afford to live in Streeterville due to the affordable apartments. Related Midwest's community commitment is also showcased by a $10 million donation to the Chicago Park District toward the future DuSable Park, located east of the development and Lake Shore Drive.
The gaping hole left by the Chicago Spire project is to be filled and covered by the northern tower's foundation and garage, with some caissons used, says a spokeswoman for Related Midwest. Despite potential challenges, sentiments remain high for future construction at the former Chicago Spire site which is expected to alter the Streeterville skyline and meet the area's growing need for affordable housing.
