CHICAGO | Hyde Park Development

[Busy Bee]

I don;t think those panels are too "contrasty" at all. It'll look good when its all finished.

[untitledreality]

A few cell phone pictures from yesterdays gloomy weather.

Harper Theater Renovation




Akira Flagship




Harper Court + Hyatt

[Rizzo]

Great update!

Seeing this makes me think I'm looking at a busy downtown corner. I really like this density

[eaguir3]

Can't wait to see City Hyde Park get off the ground, that shot will be even more epic. Its a bummer though they got rid of the taller structure.

[spyguy]

Originally Posted by untitledreality

A few cell phone pictures from yesterdays gloomy weather.

Really awesome updates today. Thanks.

So Park 52 is closing very soon. I wonder if the owners will try to lease it out even though it's eventually slated to be demolished for one of the midrise apartment buildings.

[ardecila]

I'm surprised Busy Bee didn't beat me to it, but the typeface on the Harper Theater signage is kinda lackluster (Arial?). Still, the overall effect is very clean and stylish, especially with the argyle pattern in the brick.

The new windows on the liner building are great, too. Nice, hefty mullions with a good profile. They look appropriate.

[markh9]

Loving how this project is turning out so far. Especially digging Harper Theater.

Speaking of the Harper, they just confirmed they're opening this Friday. If I have the time this weekend, I'm thinking of catching a movie and checking out the surrounding development. Looking forward to it.

Here are a few photos from the Harper Court Facebook page.

Looking NW from Lake Park Ave + 53rd:


Hyatt Place Hotel from the Harper Court office tower:


Harper Court office tower, looking south towards the Hyde Park Bank:


Photos by twitter user (and developer) @ChrisDillion.

[ardecila]

I didn't even realize that the arched entry into Hyde Park Bank would visually cap off the alley at Harper Court. Very cool.

[spyguy]

There's a community meeting on January 30th at 7 PM to discuss plans for a mixed-use development on the McMobil site. This is apparently being built by the University and Mesa Development.

Harper Theater is now open. Still surprised that no retail tenant has been announced for that prime corner space.


Harper Theater/ Facebook

Harper Theater/ Facebook

[Swicago Swi Sox]

What's with that moose?

[the urban politician]

Originally Posted by spyguy

There's a community meeting on January 30th at 7 PM to discuss plans for a mixed-use development on the McMobil site. This is apparently being built by the University and Mesa Development.

^ That's great news. A project of significant scale is much more likely to be financed with the University behind it. This is as opposed to the other projects (Antheus) in Hyde Park that have been sort of sitting there lingering.

We are in the midst of a time in Chicago when either very small projects (renovating a 2 or 3 flat) are going to happen, or very large ones (a highrise or large mixed use development) with single or multiple deep-pocketed players (or developers with excellent track records and good lender relations) are going to be involved.

Unfortunately, it makes things more difficult for the small time developer/entrepreneur who wants to break into the real estate development business. It also doesn't help that a lot of small banks in Chicago, which tend to take more risk, have collapsed (from this week's Crains).

[spyguy]

140 feet tall, 13 stories, 267 apartments, 30000 sf retail, 218 parking spots

More info here

[Ch.G, Ch.G]

Love it. Make it happen, Hyde Park.

[the urban politician]

WOW!

Definitely need to make this happen. I wonder what is holding up some of these private projects in Hyde Park these days? Hyde Park saw practically no construction (outside of the University) during the boom years, so I imagine there has to be demand brewing.

[ardecila]

That "practically no construction" is the problem; it's risky. Try getting a bank to lend to a project in a market with no new construction in decades. Remember that the Harper Court project is hotel, retail, and office - the residential tower isn't funded yet.

[urbanpln]

Originally Posted by ardecila

That "practically no construction" is the problem; it's risky. Try getting a bank to lend to a project in a market with no new construction in decades. Remember that the Harper Court project is hotel, retail, and office - the residential tower isn't funded yet.

Yeah but I would bet you that the U of C is backing this deal since they owned the land and issued the RFP back in the summer.

[SamInTheLoop]

There are some really amazing things in the works for Hyde Park. I hope as many of them as possible actually move forward. Am I right though that the only one yet (of the larger residential or mixed-use projects) to get financing and reach construction has been Harper Court? I just hope at least one of the Studio Gang proposals makes it to fruition! Also, how do you write that article and not include the architect?! Anybody know? The developer is Mesa, so it's at least a positive that it's a developer with a (very) large-project track record.....

[the urban politician]

Originally Posted by ardecila

That "practically no construction" is the problem; it's risky. Try getting a bank to lend to a project in a market with no new construction in decades. Remember that the Harper Court project is hotel, retail, and office - the residential tower isn't funded yet.

^ Banks have financed plenty of apartment rehab projects in recent years in Hyde Park (Del Prado just being one example). Clearly there is enough data present to determine market rents/occupancies, etc in the area to give lenders an idea of the risk.

In addition, there are many neighborhoods on the north side of Chicago that have had very little apartment new construction (at least major projects) in recent years. Again, the emphasis is on apartment construction, not condo construction.

So I'm not sure that the argument that "lack of new construction" as a reason why residential apartment building projects are slow to find financing in Hyde Park necessarily applies. Lenders care pretty much about 3 things: 1. how deep the pockets are of the borrower, 2. the borrower's history and experience, and 3. the likelihood that the project will generate enough income to pay the mortgage without default.

I see no reason why this determination can't be made pretty easily in Hyde Park just as in any other Chicago neighborhood. SamintheLoop, do you want to chime in?

[cntodd]

I quite like the new building. I would like to see some renderings from the street level to get a better sense of the height and how it will change the feel of the street.

I would also like to see some ideas for how they hope to change the park entrance across the street.

[SamInTheLoop]

Originally Posted by the urban politician

^ Banks have financed plenty of apartment rehab projects in recent years in Hyde Park (Del Prado just being one example). Clearly there is enough data present to determine market rents/occupancies, etc in the area to give lenders an idea of the risk.

In addition, there are many neighborhoods on the north side of Chicago that have had very little apartment new construction (at least major projects) in recent years. Again, the emphasis is on apartment construction, not condo construction.

So I'm not sure that the argument that "lack of new construction" as a reason why residential apartment building projects are slow to find financing in Hyde Park necessarily applies. Lenders care pretty much about 3 things: 1. how deep the pockets are of the borrower, 2. the borrower's history and experience, and 3. the likelihood that the project will generate enough income to pay the mortgage without default.

I see no reason why this determination can't be made pretty easily in Hyde Park just as in any other Chicago neighborhood. SamintheLoop, do you want to chime in?

I agree with your assessment of what lenders find important, although it might also be a bit of a higher hurdle to be the first large, institutional quality apartment tower in a neighborhood or more general part of the city in many years. While I haven't looked at the fundamentals data for Hyde Park, my guess is it's either there already or just about to be supportive of the type of construction financing we're talking about (in addition to the main factors TUP mentioned)....