Marquette is redeveloping a run-down 18 story rental tower near the old Cook County Hospital and is planning two more buildings next door. The Naperville firm is wrapping up an extreme makeover of a drab apartment tower in the Illinois Medical District and is ready to break ground on its next project.
An article in Crain's Chicago Business states that Marquette is moving forward with plans to develop nearly 700 apartments at Ogden and Harrison Streets. In the project's first phase, the developer has gutted an 18 story high-rise at 1926 W. Harrison and is transforming the facade with floor-to-ceiling windows. He has a 272 unit building called Atrio that shoud open in May according to Marquette President and Chief Investment officer, Darren Sloniger.
In July, Sloniger plans to start construction of the development's next phase which will be a 24 story, 280 unit tower just west of Atrio, along Damen Avenue. Marquette also plans a third building rising nine stories and totaling 120 units south of Atrio.
The medical district has attracted major interest in recent years. A redevelopment of the long-vacant old Cook County Hospital wrapped up last year and a major mixed-use project called Gateway will get started just west of Marquette's site.
With the University of Illinois-Chicago and Rush University Medical Center nearby, Sloniger is expecting to rent to a lot of students and workers in the area. The fact that his project is close to the Medical District CTA station should appeal to downtown commuters.
Many Chicago apartment landlords have suffered over the past year because of the pandemic and the recession, but demand has held up better the greater the distance from downtown. With vaccinations well underway and optimism about the economy on the rise, 2021 should be a better year for apartment owners.
Marquette is, of course, counting on that as it is ramping up pre-leasing at Atrio. Rents in the building go from $771 per month for a studio to $3,260 for the most expensive three-bedroom unit. The average apartment rents for $1,835 per month or $2.57 per square foot.
People who haven't seen the tower since Marquette bought it might not recognize it. The high rise was built in the 1960's and had a Soviet-style look with small windows and dreary facade. It now has a new glass and steel facade and would fit right in to downtown Chicago.
Marquette paid $28 million for 1926 W. Harrison in 2019 but would not say how much the redevelopment will cost. The firm is financing the project with a $37.8 million loan from Associated Bank.
Atrio's amenities will include the following:
- Large fitness center
- Study and work rooms on the ground floor
- Penthouse lounge with views of downtown Chicago
Marquette's next building is in the final planning and approval stages right now. Its a 24 story tower right next door and is allowed under the current city zoning. Marquette will be teaming up with its equity partner on this project. They are Los Angeles-based Kayne Anderson Capital Partners. They still need to secure a construction loan before breaking ground.
Marquette also is busy in the West Loop where it has completed, is developing or plans more than 1,000 apartments.
DataBid is also reporting on this project: 1436-50 W Randolph Street Multiple Building Multi Use Development Fulton Market - Chicago (0047111020)
