CHICAGO | Highrise Projects & Construction

[Chicago Shawn]

Originally Posted by LouisVanDerWright

Interesting conversations going on. Just to tie two of them together:

The development process is long and slow when viewed from a human perspective. For example, if a developer only takes on one project at a time their entire career, they may only complete 4-6 large projects in their lifetime. Many developers don't even get started until they are in their 50's and have an established career just like John O'Donnell at 150 N Riverside.

However, when viewed from the perspective of a city, the development process seems extremely short. The Pittsfield Building is a great example of this. It was the tallest building in the city when completed in 1926 and less than 100 years later it is almost completely lost in a forest of significantly taller buildings.

Development also comes and goes in very intense waves where a lot of projects that have been on the boards for years finally get built in rapid succession. We obviously saw that in the 2000's (now SEVEN years since the peak of the boom, god I am getting old) and now are lining up for the next burst of activity. There is a lot of cash out there right now and it is all chasing yield. I have talked to a lot of people in the industry lately who have noticed the same things I have. We have all seen a rapid pickup in activity across the board and 2014 is looking to be the 2003 or 2004 of this cycle. Things are really starting to break loose and there is still a lot of pent up demand out there that the slow ramp up in apartment construction doesn't even come close to addressing.

Call me crazy, but I am pretty optimistic about the chances of Chicago popping off a handful of supertalls (if not our first ultratall) in the next 3-5 years. Hopefully NAR becomes a real thing and adds another Sears sized building to the skyline. In the event the Spire and another 1300-1500' tower get built, buildings like the Hancock and Big Stan that were once the city's tallest are going to go the way of the Pittsfield Building and start to fade into the background of the skyline as they are diminished by larger buildings.

I agree 100%. Just read all of the real estate and finance stories over the past year and a half. Developers are and have been arraigning the pawns for some time now and are ready to start making moves. When the economy cycles back to above normal rates of growth, this city is really going to pop. Just look at all the hotel announcements from the last 3 months alone.
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GEM school 02-15-2014:

[the urban politician]

The GEMS school is absolutely stupendous. I just hope they keep the exterior clean.

[the urban politician]

Originally Posted by LouisVanDerWright

We obviously saw that in the 2000's (now SEVEN years since the peak of the boom, god I am getting old) and now are lining up for the next burst of activity. There is a lot of cash out there right now and it is all chasing yield. I have talked to a lot of people in the industry lately who have noticed the same things I have. We have all seen a rapid pickup in activity across the board and 2014 is looking to be the 2003 or 2004 of this cycle. Things are really starting to break loose and there is still a lot of pent up demand out there that the slow ramp up in apartment construction doesn't even come close to addressing.

Call me crazy, but I am pretty optimistic about the chances of Chicago popping off a handful of supertalls (if not our first ultratall) in the next 3-5 years. Hopefully NAR becomes a real thing and adds another Sears sized building to the skyline. In the event the Spire and another 1300-1500' tower get built, buildings like the Hancock and Big Stan that were once the city's tallest are going to go the way of the Pittsfield Building and start to fade into the background of the skyline as they are diminished by larger buildings.

^ I'd love to share this optimism, but what do you think about the recent decline in downtown rents/sq foot?

In addition, Chicago's demographics are still a bit weak. That probably won't affect the downtown rental economy, as the central area is booming like crazy, but in the long run we need more fuel behind the fire. More job growth and more immigration.

[chicagogreg]

Originally Posted by LouisVanDerWright

Interesting conversations going on. Just to tie two of them together:

The development process is long and slow when viewed from a human perspective. For example, if a developer only takes on one project at a time their entire career, they may only complete 4-6 large projects in their lifetime. Many developers don't even get started until they are in their 50's and have an established career just like John O'Donnell at 150 N Riverside.

However, when viewed from the perspective of a city, the development process seems extremely short. The Pittsfield Building is a great example of this. It was the tallest building in the city when completed in 1926 and less than 100 years later it is almost completely lost in a forest of significantly taller buildings.

Development also comes and goes in very intense waves where a lot of projects that have been on the boards for years finally get built in rapid succession. We obviously saw that in the 2000's (now SEVEN years since the peak of the boom, god I am getting old) and now are lining up for the next burst of activity. There is a lot of cash out there right now and it is all chasing yield. I have talked to a lot of people in the industry lately who have noticed the same things I have. We have all seen a rapid pickup in activity across the board and 2014 is looking to be the 2003 or 2004 of this cycle. Things are really starting to break loose and there is still a lot of pent up demand out there that the slow ramp up in apartment construction doesn't even come close to addressing.

Call me crazy, but I am pretty optimistic about the chances of Chicago popping off a handful of supertalls (if not our first ultratall) in the next 3-5 years. Hopefully NAR becomes a real thing and adds another Sears sized building to the skyline. In the event the Spire and another 1300-1500' tower get built, buildings like the Hancock and Big Stan that were once the city's tallest are going to go the way of the Pittsfield Building and start to fade into the background of the skyline as they are diminished by larger buildings.

I totally agree with development pace picking up, even more so than the past year or two, but I'm still not sure if it will be robust enough to produce even one supertall in the next few years. The economy, while clearly steadily improving, is still on somewhat shaky ground, and I don't know if developers are willing to plunge all in on a huge project just yet. Fingers crossed though!

[ardecila]

Originally Posted by the urban politician

The GEMS school is absolutely stupendous. I just hope they keep the exterior clean.

Agreed.

I hope the colored coatings were carefully chosen for UV resistance... this building will look very Thompson Center-ish if the colors ever fade.

[Busy Bee]

Originally Posted by ardecila

Agreed.

I hope the colored coatings were carefully chosen for UV resistance... this building will look very Thompson Center-ish if the colors ever fade.

Yeah, if the panels were porcelain enamel they would never fade, but it's doubtful they are because for the same reason signs are no longer made from this the process I believe is harmful to the enviro.

[left of center]

Originally Posted by HomrQT

I hate to see this baby go because there's no new art deco in the city coming along to replace it. Can we not all agree that art deco is just as classy as it comes? This isn't even a strong example of art deco and in my eyes it shines.

Completely agreed. While I don't think that this building is itself an outstanding candidate of its style, its definitely an excellent supporting character on that stretch of Michigan from Randolph to Wacker. It adds to the historic feel of the city, contrasting sharply with the modernist bastion of the Illinois Center across the street. While I like the design of the new building replacing it, I'm still sad to see the existing 200 N Michigan go. In a perfect world, the tower would be built, re-purposing the existing building as its base... but of course, that would probably add to the developer's costs, and it would essentially gut most of the existing interior.

[wierdaaron]

The ground level retail of 200 N Mich, however, I can't imagine anyone mourning the loss of. The sharp edged metalwork haphazardly slapped onto the building had no character and is the exact thing that came to mind when I thought about the blight of the Wacker-Randolph stretch of Michigan. So very glad that whole strip is being rehabbed on all sides. That and the ragged edge of the river where River Point and 150 N riverside are going were my two biggest pet peeves after moving here, and the fact that both are actively being fixed makes me think I secretly control the world with my mind.

[nergie]

Originally Posted by Chicago Shawn

I agree 100%. Just read all of the real estate and finance stories over the past year and a half. Developers are and have been arraigning the pawns for some time now and are ready to start making moves. When the economy cycles back to above normal rates of growth, this city is really going to pop. Just look at all the hotel announcements from the last 3 months alone.
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GEM school 02-15-2014:

My new neighborhood, just moved into Lakeshore East.

[Ch.G, Ch.G]

Man, that's gorgeous.

[J_M_Tungsten]

^Much agreed. They are doing a great job with addressing the awkwardness of the multiple levels in Lake Shore East too. I'm very excited to see what that narrow lot between the Aqua podium and BCBS Building will be. I forgot if anything was ever planned there. Anyone recall?


What a transformation. A golf course, to almost a fully formed skyscraper neighborhood (one pretty iconic-Aqua), in 20 years. Lots of open land yet for several more large projects! Let's see what the next 20 years hold for Lake Shore East!

[chicagogreg]

Originally Posted by nergie

My new neighborhood, just moved into Lakeshore East.

Can I go to school here?

[Tom Servo]

Originally Posted by Ch.G, Ch.G

Man, that's gorgeous.

No —. I was about to respond, but J_M_Tungsten said essentially exactly what I was thinking regarding the great job with addressing the awkwardness of the multiple levels in Lake Shore East. I too am also excited to see what that narrow lot between the Aqua podium and BCBS will be.

What a transformation. A golf course, to almost a fully formed skyscraper neighborhood (one pretty iconic-Aqua), in 20 years. Lots of open land yet for several more large projects! Let's see what the next 20 years hold for Lake Shore East!

Yes!

[Tom Servo]

Originally Posted by nergie

My new neighborhood, just moved into Lakeshore East.

Nice! Jonathan Toews lives there btw.

[wierdaaron]

That lot between Aqua and BCBS has come up a few times here (I've paid attention because I work in BCBS) but there hasn't been any real activity announced or even rumored there as I recall. I and a few others have said it would be nice as a grand staircase or something to gently transition between upper Columbus and the lower level street, which could improve the pedestrian experience and bring human beings down to those storefronts. But in the real world, there hasn't been a peep. The land is probably worth too much to use it as a piece of private civic infrastructure. Though the residents of Aqua probably have enough pull that a tower there would have to protect views.

Edit: just happened to have a photo handy that I took a while ago in case it should ever come up again.



That's BCBS plaza property on the left wall, Aqua property on the right, and Columbus in the back. Any construction would have to stay clear of all of those things, since Magellan owns none of them.

[ardecila]

Magellan is definitely cooking up something for this site; IIRC it is a mix of hotel and residential like Aqua. Not sure if the residential will be rental or condo.

[denizen467]

Originally Posted by nergie

My new neighborhood, just moved into Lakeshore East.

With privileges come responsibilities. Frequent pics please! At least every month or so anyway.

[Chi-Sky21]

I always have wondered about the other vacant lot directly behind BCBSA, at the northwest corner of Stetson and Lake. Was there ever anything planned for that site?

[nergie]

Originally Posted by Chi-Sky21

I always have wondered about the other vacant lot directly behind BCBSA, at the northwest corner of Stetson and Lake. Was there ever anything planned for that site?

IIRC wasn't the vacant lot supposed to be the location of the Mandarian Oriental Hotel?

Toews lived in the Aqua, but I believe he moved to another location in the neighborhood.

I am renting for a year and then looking to buy in the neighborhood.

I will do my best to take pictures, need to buy a camera that will take pictures worthy of this site. Harry, I am Hydrogen, George and so many others all take amazing snaps.

[the urban politician]

Originally Posted by wierdaaron

I and a few others have said it would be nice as a grand staircase or something to gently transition between upper Columbus and the lower level street, which could improve the pedestrian experience and bring human beings down to those storefronts.

^ Serious? A staircase next to an already existing staircase?

I couldn't think of another more wasteful use of prime real estate.