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

Skidmore, Owings & Merrill (SOM) has shared a progress update on the ongoing construction of 400 Lake Shore Drive, a two-tower development rising along the Chicago waterfront. The project, which replaces Santiago Calatrava’s long-abandoned Spire Tower, is being led by SOM’s Chicago office and was originally designed by the late architect David Childs. Childs, known for shaping skylines with iconic buildings, passed away last month at the age of 83.

Construction on the first of the twin towers—a 72-story residential building—has reached a key milestone with the installation of its advanced glass curtain wall system now underway. The facade, described by SOM as “sophisticated,” reflects a contemporary approach to luxury urban living and architectural detail. This significant progress comes nearly a year after the project officially broke ground in June, following delays that had stalled development for years, largely due to the pandemic.

With construction now moving steadily forward, SOM anticipates completing the first tower by 2027. The project, being developed by Related Midwest, represents a major revitalization effort for the site and is expected to dramatically transform the city’s lakefront skyline. As work continues, 400 Lake Shore Drive stands not only as a new architectural landmark but also as a tribute to Childs’ enduring legacy in shaping modern urban environments.

First phase of the 400 Lake Shore Drive

The first phase of the project at 400 Lake Shore Drive 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 400 Lake Shore Drive (Current)

In 2018 the developer initially announced a project $1 billion, for the Chicago Spire site(proposed). 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.

400 Lake Shore Drive Progress Update: Phase One Completion Date Still on Track

Related Midwest has started construction on the project at 400 Lake Shore Drive, which involves emptying the hole. According to Bailey, the team anticipates completing the first phase of the project 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.

Additionally, twenty percent of the units in the two-tower 400 Lake Shore Drive project will be affordable, for individuals earning 30% to 50% of the area’s median income, or between $23,190 and $44,150. The project qualifies for a tax incentive under a 2021 state law, which helps ensure its viability, according to project representatives.