Fulton Market developer proposes over 2,200 apartments near Bally’s casino site

Separately, Shapack proposes to redevelop a trio of sites southwest of the Salvation Army property near the intersection of Milwaukee and Union avenues and Hubbard Street, according to the other zoning application. as ground-floor retail space and a small amount of office space.

The collection of projects, which require City Council approval, amount to one of the most ambitious bets on a downtown apartment market that has roared back from early COVID-19 pandemic devastation.

It also piles onto a mix of huge apartment projects near the Chicago Tribune’s Freedom Center, which is poised to be redeveloped into a $ 1.7 billion Bally’s casino, hotel and entertainment venue if the gambling giant can win final approval from the Illinois Gaming Board and Chicago Plan Commission for the project. Canadian developer Onni Group recently won City Council approval to build almost 2,700 apartments just north of the casino site on the southern tip of Goose Island. Onni is also finalizing a deal to buy another big development site along the casino property’s northern border with a plan to develop what could be well more than 1,000 more apartment units.

If the Shapack projects come together as planned, it would further establish the area between Fulton Market and the North Branch of the Chicago River as a burgeoning new downtown neighborhood.

A spokesman for Shapack couldn’t be reached.

Shapack is best known for developing a series of high-profile office, hotel and apartment buildings in Fulton Market over the past decade. Its most notable projects include a 750,000-square-foot office building at 167 N. Green St., the Hoxton Hotel , the Soho House hotel and private club, and the Parker Fulton Market apartment building.

A source familiar with the new Shapack plan said the hotel would be developed before the apartment buildings, similar to the way Shapack began his Fulton Market work with Soho House to help generate foot traffic in the neighborhood.

The new proposals combined include plans for 454 affordable units in the apartment buildings to comply with the city’s ordinance governing affordable housing in residential projects, according to the zoning applications.

On the Salvation Army site along the southern edge of the Interstate 94 Ohio Street feeder ramp, Shapack plans to convert a six-story building at 509 Union Ave. into the hotel. The apartment building would be built on a property along Desplaines, where current The site’s development prospects grew in 2017 after the city added more areas of the central business district that were eligible for higher-density zoning.

Magnetar Capital founder Alec Litowitz and his wife, Jennifer Litowitz, are investors in both projects, according to the zoning applications. They previously teamed with Shapack on the development of a 70,000-square-foot office building at 811 W. Fulton St. that they sold in 2019 for more than $ 50 million, then a record price paid per square foot for a Chicago office building.

The sites closer to Hubbard Street include a pair of properties on the north and south sides of Milwaukee Avenue as well as one east of Union Avenue. The properties, which Shapack acquired in pieces between 2016 and 2022, according to the zoning application, are primarily home to single-story buildings or surface parking lots today.

The site farthest west between Milwaukee and Hubbard would be redeveloped with a 337-unit apartment building rising 300 feet, according to that site’s zoning application. Shapack proposes a 317-unit apartment building rising 350 feet on the parcel between Milwaukee and Union and a 505 -unit building rising 490 feet east of Union, the application shows.

Plans show that all three of those projects would be coordinated with open-air walkways cutting through the ground floors, similar to the “mews” concept Shapack developed at 167 N. Green St., which is slated to continue across the street at a large new development his firm has planned at 170 N. Green St.