Related Midwest has broken ground on 900 Randolph, a 43 story apartment tower in Chicago's Fulton Market. The project will feature 300 apartment units, 60 of which will be designated as affordable housing.
An article in PR Newswire states that the partnership between Related Midwest, LR Contracting Company and BOWA Construction will deliver one of Chicago's first 80/20 buildings and the city's first high-rise with an African-American Minority Business Enterprise co-leading construction.
The project was designed by Morris Adjmi Architects. This is Related's third collaboration with Morris Adjmi Architects nationwide and second in Chicago. The firm previously partnered with Related for the 300 unit Landmark West Loop tower at 1035 West Van Buren which opened in 2015.
The development will be a model for the future because it is the first major building constructed under new Affordable Illinois legislation, with 80 percent market-rate and 20 percent affordable units, totaling 50 affordable residences.
"We are thrilled to bring this transformative project to Fulton Market, where it will set a new standard for Chicago's residential market by creating the highest quality housing for all Chicagoans. With its elegant design and innovative approach to mixed-income development, this is a building for Chicago's future."
President of Related Midwest | Curt Bailey
Details are still forthcoming but the building will include:
- 300 apartments
- Studios to 3 bedroom units
- Full suite of amenities and services
Crain's Chicago Business states that this project is a major step forward for Bowa and its president and CEO, Nosa Ehimwenman, who founded the company in 2009. Bowa has completed about $400 million of work over the past five years and now employs about 60 construction professionals.
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Minority contractors can get work on big, high profile developments, but it's often to meet the city's requirements. Developers that need a zoning change or other city benefits for a project must set aside 26% of the work for minority-owned businesses and 6% for women-owned businesses. According to Ehimwenman, developers do it to check a box, but many aren't really committed to giving the companies real responsibility so they can win business without government help.
Related Midwest has hired Bowa as the prime contractor for other projects, including a library on Taylor Street in Little Italy. But at $212 million, 900 Randolph is a lot bigger and more complicated. To pay for it, Related Midwest is borrowing $130 million through Wells Fargo Bank and Bank of America, financing coordinated by the Illinois Housing Development Authority, according to the developer. Related Midwest and its joint venture partner, the State Teachers Retirement System of Ohio, are also investing $82 million of equity in the project.
The Fulton Market project is a leader in another category, too. It is one of the first, if not the first, large residential development expected to qualify for a new tax-incentive program created to encourage construction of affordable housing. The program gives developers a reduction in their property-tax assessments if they set aside at least 20% of their units as affordable. At 900 Randolph, Related Midwest will rent out 60 apartments at below market rates.
Ehimwenman grew up in Evanston and moved with his family to the south suburbs before high school. As a track star at Homewood-Flossmoor High School, he excelled at triple jump and long jump. He attended Ohio State University on a track scholarship, earning a Big 10 championship and All-American honors. He worked for several years in construction for Gilbane Building before starting Bowa in 2009.
