Chicago Project Moves Forward With $305M Loan
The developers switched from condominiums to a luxury rental tower.
A joint venture of Time Equities Inc., JK Equities and Oak Capitals has secured $304.5 million in construction financing from Goldman Sachs Bank USA and Deutsch Bank Wealth Management to re-start development of a multifamily skyscraper at 1000 S. Michigan Ave. in downtown Chicago, known as 1000M. Construction is expected to be completed within three years.
Development of the tower, initially planned to be an 832-foot high condominium building with 521 units, was stalled in the spring of 2020 because of the pandemic. Due to changing market conditions, the project owners moved from condominiums to an ultra-luxury rental tower. Designed by the late famed German architect Helmut Jahn, the tower will now be 805 feet and 73 stories with 738 apartments. Residences will range from studios to three-bedroom penthouse units and will include 23 affordable apartments.
Jahn passed away in May, but his firm, JAHN, remains the architectural firm of record with Phillip Castillo, Jahn’s longtime partner, continuing to oversee the day-to-day responsibilities for 1000M.
McHugh Construction is the construction manager. Interior designer Kara Mann is leading the completely re-imagined interior design and amenity planning for the South Loop rental tower. The building will feature 75,000 square feet of indoor and outdoor luxury amenity space. Centrally located along Chicago’s Cultural Mile and the Historic Michigan Boulevard District, 1000M overlooks Grant Park and is also within walking distance of Maggie Daley Park and Millennium Park, the lakefront, restaurants, transportation, schools, the Art Institute, Field Museum Shedd Aquarium and Soldier Field.
The developers broke ground on 1000M in November 2019. Once the pandemic shut down construction of the condo development, TEI, JK Equities and Oak Capitals decided to recalibrate and redesign the project. The Chicago Plan Commission approved revised plans for the rental apartment design in mid-June and the City Council signed off on the revamped project in early July.
Robert Singer, TEI’s director of development, said in prepared remarks the market in Chicago for ultra-luxury apartments is very strong now and is expected to continue strengthening and they look forward to delivering best-in-class apartments in late 2024.
Even with the slightly reduced height, 1000M will still be Jahn’s tallest structure built in Chicago. Francis Greenburger, TEI chairman & CEO, said in a prepared statement the team remains saddened by the loss of Jahn, but sees 1000M as further testament to the renowned architect’s impact on the Chicago skyline. His iconic projects in Chicagoland include the James R. Thompson Center, United Airlines Terminal 1 at O’Hare International Airport, the University of Chicago’s Mansueto Library and the 40-story One South Wacker office building.