Construction Starts on Chicago Spire Site with $500M in Financing

Related Midwest has successfully obtained over $500 million in construction funding as it starts construction on the first phase of its massive project consisting of two towers on the former Chicago Spire Site. This represents a milestone in a development that will bring about changes, to the skyline along the city’s lakefront.

The first phase of the project at Chicago Spire Site involves constructing an apartment building, with 72 stories and 635 units on the part of location, at 400 N. Lake Shore Drive. Additionally, it includes the awaited development of DuSable Park and the creation of a walking path that connects the Chicago Riverwalk to Lake Michigan.

The project, known as 400 Lake Shore is receiving support through tax bonds, from the Illinois Housing Development Authority. These bonds were acquired from lenders, including Wells Fargo as mentioned in property records of Cook County and documents from IHDA. Apart, from that Related Midwest and other partners are also contributing capital to the development. However, Curt Bailey, the President of Related Midwest has chosen not to disclose the amount or estimated total cost of the project.

The Chicago Spire site developers’ impressive accomplishment lies in their success in securing financing, for the project despite the challenges posed by interest rates. These rates have hindered projects making it challenging for developers to obtain construction loans for large-scale endeavors such, as this one.

“I believe that due to the absence of construction in the city, this would serve as a symbol for our community. A towering crane in a space visible from all corners overseeing the development of a noteworthy building on a site with a strong emphasis, on affordability “Bailey expressed.

First Unveiling of the Project at the Chicago Spire Site

In 2018 the developer initially announced a project $1 billion, for the Chicago Spire site. The original plans included a hotel and condominiums. Later they modified it to a residential proposal. Over the 15 years, this location has become well known due to the hole that remains from the unsuccessful attempt to build the 150-story Chicago Spire. This tower was intended to be the tallest, in the Western Hemisphere.

Anticipated Completion Date for the First Phase

Related Midwest has started construction on the project at Chicago Spire Site, which involves emptying the hole. According to Bailey, the first phase of the project is anticipated to be completed by spring 2027.

He also shared his belief, in the apartment market in downtown Chicago, he said that a significant number of young well educated individuals are choosing to relocate to downtown Chicago compared to other downtown areas, across the country.

“We’re observing a trend where it is becoming evident in the construction of complexes, in downtown Chicago. This indicates that the broader market nationwide will eventually recognize this and likely witness an increase in construction projects. However, there is awareness regarding this matter now. In light of that we believe it is a moment to develop a building at Chicago Spire Site, within the city “he expressed.

Twenty percent of the units in the two-tower skyscraper project at Chicago Spire Site will be designated as affordable housing catering to individuals, with incomes ranging from 30% to 50% of the area’s median income. This means that people earning, between $23,190 and $44,150 will have the opportunity to avail themselves of this housing option. The project qualifies for a tax break according to a state law enacted in 2021 which has enabled the project viability as mentioned by Bailey.