Wednesday, December 2, 2020

Is a Conversion to Rentals the Answer to Save 1000M Development on Michigan Avenue?

An update on the 1000M development (via Chicago Tribune):

The biggest Chicago skyscraper to have construction halted by the coronavirus pandemic could be revived in 2021 — as apartments instead of condos.

Unit layouts are being redesigned at 1000M, the Helmut Jahn-designed condo tower on South Michigan Avenue, in an effort to refinance the project and resume construction next year, “primarily as a rental project.”

“The exterior of the building would remain substantially as previously approved,” Francis Greenburger, chairman and CEO of New York-based Time Equities, added in an emailed statement. “Our hope would be to commence construction next year, but this will depend on economic conditions and the availability of financing.”

As a reminder, construction was officially paused in the Summer (see post here) given financing challenges.  At the time it was unclear what the path forward was - especially given all the uncertainties with Covid-19. 

Regardless, the pivot to rental seems like the latest effort to not lose out on this high-rise.  It seems like there are a lot of hurdles to clear for this one - so we will see what comes next.

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