Development Assemblage in Chicago’s South Loop
- Aug 09, 2016
Chicago—A joint venture between locally based Murphy Development Group LLC and Los Angeles-based CIM Group acquired a 0.6-acre site at 1326 S. Michigan Ave. in Chicago’s South Loop, along with development air rights from adjacent properties with plans to develop a 500-unit apartment tower.
When completed, the 46-story development will also include 7,700 square feet of ground-floor retail and a 190-stall parking deck.
“The development of 1326 S. Michigan is consistent with our goal of producing institutional grade projects to either hold or sale; we are merchant developers,” John Murphy, Murphy Development Group’s president, told MHN. “The South Michigan Avenue market is strong now and just keeps getting stronger.”
Centrally located in the South Loop, the planned tower creates the opportunity to expand housing and also enhance the pedestrian experience along the already burgeoning South Michigan corridor.
According to Murphy, the walking-distance proximity to many of Chicago’s favorite amenities made the location so appealing. The site is close by cultural institutions, such as The Field Museum, the Adler Planetarium and the Shedd Aquarium, in addition to Soldier Field.
“Also, the McCormick Place convention center is just south of Soldier Field,” Murphy said. “Importantly, 1326 S. Michigan is just blocks from Grant Park and the transportation lines to all points in and around Chicago.”
CIM is no stranger to the market, as it already possesses 2.6 million square feet of real estate investments in the city. In June, CIM acquired an office property at 440 S. LaSalle, and its portfolio also contains Block Thirty Seven, a 275,000-square-foot five-level retail center in Chicago’s Loop; The Marquee at Block 37, a 34-story, 690-unit residential apartment tower, which CIM completed and opened in June; 625 N. Michigan Ave, a 27-story office building; and 1001 South State St., an apartment development located in the South Loop.
“Murphy laid the groundwork for identifying this in-fill site, secured the air rights, and created the development plan,” Avi Shemesh, CIM Group’s founding principal, said. “This is a compelling opportunity that is a good fit with our firm’s investment philosophy.”
Image courtesy of Murphy Asset Management Group