Home News Mavrek Development plans big apartment tower in Chicago’s West Loop

Mavrek Development plans big apartment tower in Chicago’s West Loop

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The numbers are staggering. According to his Integra Realty Resources, a valuation and consulting firm, the developer will complete a total of about 3,000 apartments in West Loop in 2022, 2023 and 2024. But they’re proposing nearly 10,000 more.Two development groups announced plans last month about 700 units Located in the Fulton Market district, the epicenter of the construction boom.

High occupancy rates and record rents give developers and their investors confidence to build new skyscrapers. However, rising construction costs and rising interest rates are working against them by making it difficult to finance projects.

About nine months ago, builders allowed developers to borrow about 60% to 65% of a project’s cost. Today, they don’t get much more than 55% from his 50%, said David Hendrickson, senior managing director of Walker & Dunlop’s Chicago office. Developers usually have to invest more equity in the project to fill the gap.

“There was a pullback,” Hendrickson said.

But it’s actually good for the market, reducing the potential for an oversupply of West Loop apartments. Hmm, other developers may simply postpone their plans.

Mavrek also plans a tower at the south end of the neighborhood, a few blocks away from Fulton Market, an area not flooded with new apartments and development plans.

Marbreck executives declined to comment. Earlier this year, a joint venture that included the company submitted plans to the city. 21-story apartment complex with 248 units at Streeterville. Venture in late September Securing $102 million in construction loans for the project.

Mavrek is planning the West Loop project at a company-owned site currently occupied by a five-story office building. The high-rise, designed by BVK Group, will include 125 parking spaces and 350 bicycle parking spaces, according to a zoning application filed with the city. To comply with the city’s Affordable Housing Ordinance, the project will have 74 units set aside to be affordable for tenants with incomes averaging 60% of the median income in the Chicago area. included.

Because the current zoning does not allow for Mavrek’s proposed building, the developer filed a document with the city council asking for a special zoning designation to allow it. If Mavrek secures council approval, it will need to finance construction before construction can begin.

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