Proposed new apartment tower on Near North Side
Apartment developers are rolling out plans for new developments throughout downtown Chicago, betting the multifamily market will continue to grow. After briefly dipping in the early months of the COVID-19 pandemic, occupancies and rents have rebounded and developers have regained their swagger.
Developers will complete only about 1,300 apartments in downtown Chicago this year, their lowest annual total in a decade, the result of a slowdown in housing starts in 2020, according to Integra Realty Resources, a company assessment and advice. But they’re on track to complete more than 5,500 units in 2023, their biggest year since at least 1999.
About 17,000 units are still in the planning stage, with more than 2,000 under construction on the Moody Bible property. They will not all arrive on the market at the same time and some projects may never see the light of day.
“We are currently in the early planning stages and look forward to working with the city and local stakeholders to finalize a plan for this site,” D&K Vice President Gordon Ziegenhagen said in a statement.
Founded in 1893, the company is one of Chicago’s oldest real estate companies and has developed several apartment buildings in the city in recent years, including a 275-unit tower in the South Loop and a 58-unit project in the Gold Coast. D&K is also planning a 133-unit apartment building at 1649 N. Halsted St. in Lincoln Park, according to its website.
The project on Chestnut would include 13 parking spaces and 26 reserved apartments at an affordable price for residents with limited incomes, meeting the requirements of the city’s Affordable Housing Ordinance. Chicago architecture firm FitzGerald Associates is designing the building.
“Offering a contemporary take on traditional warehouse architecture of the early 1900s, the design is intended to complement the diverse architectural styles found in the surrounding neighborhood,” D&K says on its website.
The developer has filed a zoning application with the city council as they need a zoning change to build the project. D&K is also expected to line up an equity loan and a construction loan to finance the development.