Miami-based firm Crescent Heights has hired CBRE Vice President Tom Svoboda to sell a 43,100 sq. ft. parcel at 1201 S. Michigan Avenue near Grant Park in Chicago. This is coming about four years after the construction of the 76-story Nema Chicago apartment complex on the adjacent lot. Although there is no asking price for the vacant site, it is predicted to sell quickly due to the high demand for apartments in Chicago, particularly in the downtown area. The multifamily sector has been thriving in Chicago’s real estate, resulting in an increase in new apartment projects. However, developers need to be cautious not to oversupply units, as this could upset the balance of supply and demand. An estimated 3,700 multifamily units will be delivered in downtown Chicago in 2024, the most since 2017. An excessive number of units could result in a decrease in occupancy, rents, and property values.
The development plan includes a residential entryway that lines up with Kinzie and Racine Streets, a height of 615 feet up to the mechanical penthouse, a designated car drop-off area on the north side of the property, 5,000 sq. ft. of ground floor retail space, and top-of-the-line amenities. 20% of the 118 units will be designated for on-site affordable housing. Existing business tenants will have opportunities to remain for the time being. Construction will not begin for at least 12 months. The parking levels have been designed with flat floors to allow for future conversion in case parking demand drops significantly. The total cost of the development is expected to be around $300 million, and it is anticipated to generate $4 million in annual property tax revenue.
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