A 47-story residential tower from Chicago-based Murphy Development Group and Los Angeles–based CIM Group is set to break ground in Chicago’s South Loop, according to Curbed Chicago.
Designed by Chicago- and San Francisco–based Solomon Cordwell Buenz, the tower will have a glass façade and it will include 500 rental apartments, retail space and parking.
Final approval for 1326 S. Michigan Ave. follows permitting for another South Loop tower, the 56-story Essex on the Park, which snagged a $170 million construction loan earlier this year.
The news of the tower’s construction kickoff comes amid speculation that Chicago’s rental market may be slowing down, with inventory likely to be up 150% from 2005 levels by 2018 and with more than 8,000 rental units under construction.
One indicator that the tapering may already be underway is that rental prices in the city declined in March, likely driven by oversupply.
Meanwhile, Related Midwest President Curt Bailey said the Chicago market is primed for large-scale condos, Multi-Housing News reported, as young people gain more confidence in the housing market and move from renting to owning.
Not far from 1326 S. Michigan, in the River North neighborhood, New York-based Symmetry Property Group is planning a 60-story tower combining hotel rooms, hotel timeshare units, condos and retail space. And the nearby Essex on the Park, which will be 56 stories tall, will include luxury rental units and four penthouse duplexes.
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