A mixed-use development planned for the site of the former Purple Hotel at Touhy and Lincoln Avenues in Lincolnwood, Illinois has begun construction. The District 1860 project will contain 299 residential apartments.
The Patch reports that Highland Park-based Tucker Development and AECOM-Canyon Partners, a joint venture formed by a pair of Southern California firms have announced that the partnership had closed on a construction loan and is now starting construction.
The name District 1860 is a reference to the year the village's namesake, Abraham Lincoln, was first elected. The redevelopment will include the following:
- 299 residential units
- An Amazon Fresh grocery store
- More than 40,000 square feet of additional leasable retail and restaurant space
Commercial space at the new development is already 65 percent pre-leased and the redevelopment is due to open in 2023.
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The Lincoln Review stated that the two restaurants that are planned for the site have been identified as local chains Fat Rosie's Taco and Tequila Bar and Fat Pour Tap Works.
The Purple Hotel opened in 1962 as a Hyatt but in later years it became known for organized crime and debauchery. It is also the place where reputed Mafia associate Allen Dorfman was shot to death in 1983. It was demolished in 2013 after being purchased by North Capital Group, whose principal Zvi Feiner, is facing federal charges following allegations he used his position as a rabbi to run a Ponzi scheme that targeted members of the Orthodox Jewish community.
The redevelopment of the site is the subject of ongoing litigation in federal court. Lake Forest Real Estate Investors, which had been under contract to purchase the site, sued the village and former Mayor Barry Bass in 2019. They alleged that Bass had "greased the skids" in favor of Tucker, a longtime associate.
Attorneys for the village managed to get some counts of the complaint dismissed and have asked a judge to rule in the village's favor in their claim of a violation of the 14th Amendment's guarantee of equal protection.
In last week's court filing, an attorney for the former contract purchaser alleged that village officials refused to meet with the developer despite repeated requests, ignoring information it provided and allowed Tucker to proceed with a plan that was far less developed.
An article in Crain's Chicago Business states that Tucker Development has lined up an equity partner, Los Angeles-based AECOM-Canyon Partners and a $101 million construction loan from Pacific Western Bank, also from Los Angeles.
The project will also receive some major financial help from the Village of Lincolnwood, which approved a $31 million tax-increment financing subsidy in 2019.
Tucker pursued the project partly because of its phenomenal location at a busy intersection. An average of 45,000 cars pass by daily on Touhy and 15,000 drive past everyday on Lincoln. That would definitely be a draw for retailers. On the flip side, the Amazon Fresh and restaurants are amenities that could help lease up the project's apartments.
The development site also includes a parcel along Lincoln for a future hotel. Tucker would bring in a hotel developer to build the hotel rather than do it on its own. Tucker stated that they are already in discussions with a few different players.
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