Cedar Street Cos. and Origin Investments, both Chicago-based firms, have formed a joint venture to develop Pilsen Gateway, a $64.5 million luxury community just outside of Chicago’s Pilsen neighborhood.
The project will rise on a 1.2-acre site and is one of the first and largest developments in a qualified opportunity zone in Chicago.
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Financing for the property was arranged by Don Adams of TCF Bank and Michael Slovitt of Berkadia.
The project is located at 1461 S. Blue Island, just three block north of Pilsen and on the southern edge of the University Village/Little Italy neighborhood. Apartments at the community will be a mix of studio, one- and two-bedroom units that will average 616 square feet in size. Seven units at the building will be designated affordable. Amenities at the property will include an 8,500-square-foot amenity deck, a resident lounge, fitness center, 131 parking spaces and about 7,600 square feet of ground floor retail space.
Construction recently launched at the project, with a completion date slated for spring of 2021, according to the venture. The project marks Cedar Street’s second in the Pilsen market, following the firm’s renovation of an historic building along nearby 15th Street.
Will Murphy, CEO & managing partner of Cedar Street Cos., said in prepared remarks that his firm saw the project as an opportunity to develop something of scale in an area that was lacking supply. With the project, Murphy hopes more multifamily development as well as retail will follow.
Last month, Origin Investments, along with Randolph Street Realty Capital, acquired an 80-unit Class A multifamily property in an opportunity zone in downtown Phoenix.