The Chicago River is “flooding” again.
This time its banks are awash in a wave of new residential projects.
The river, once thought to be a second-rate location, now is prime real estate, where new waterfront townhouses are going for $1 million or more, and where condominium towers soon will soar skyward in the downtown area.
“The river is hot,” said Laurene von Klan, executive director of the Friends of the Chicago River. “More people are discovering the river; they want to live and work close to it.”
More than 1,200 new housing units are on tap in four mega-developments along the river. Other new projects in the planning stages could produce hundreds of additional riverside residences.
Plus, another 1,500 new housing units are being built within a short walk of the river, and many of them have river views from their upper stories.
Why this deluge of new projects? Why the river’s renaissance now?
“There’s only one river; those residential sites can’t be repeated,” said Tracy Cross, president of Tracy Cross & Associates, a Schaumburg-based real estate consulting firm.
“The lure is being able to go out on your patio or balcony and enjoy views of the river and the city’s skyline. The lure also is the exciting urban environment, and the proximity to 500,000 jobs in the Loop,” said Cross.
This special ambience does not come cheap.
“Developers on the river are achieving price premiums unheard of before,” noted Cross.
Here’s a capsule look at four of the largest projects–already under way or about to start–that will change the face of the river:
– River Bend. To be built at a high-profile site across from Wolf Point at the crossroads of the North, South and Main Branches, it will consist of a 38-story condominium tower and four townhouses at its base.
Bejco Development Corp. plans 139 to 166 units priced from the high $200,000s to more than $1 million. All will have river views. Construction is scheduled to begin next spring, with completion 18 months later.
– RiverView. Planned for one of the most scenic locations still available–13 acres on the north side of the Main Channel just before it meets Lake Michigan–it will consist of two condominium towers of 22 and 27 stories and 19 four-story townhouses along the river, a total of 266 units. Prices range from $325,900 to $2.1 million at the MCL Companies project.
At a later date, a third condominium high-rise may be built next to Lake Shore Drive with an additional 150 residences.
– Kinzie Park. Models already are being built at this 6.5-acre site on the west side of the North Channel across the river from the East Bank Club at 500 W. Kinzie St.
The mix in the 330-unit gated community will include a 34-story building, midrise residences and four-story townhouses. Prices range from $121,500 to $969,600 at this joint venture of the Habitat Co. and Enterprise Development Co.
– Randolph Place. The vintage, nearly 1 million-square-foot warehouse/office building, located on the west side of the river across from the Loop, between Randolph and Lake Streets, is being converted into 350 condominium loft residences. Now 95 percent sold, the remaining units cost $174,800 to $314,800 at the project by MCZ Development Corp.
The new residents in these projects will be able to enjoy the benefits of the river’s dramatic setting as it flows through the canyons of downtown buildings, and the sight of increased boat traffic plying the waterway.
Part of the river’s new appeal can be attributed to better water quality. The Deep Tunnel project, constructed to alleviate flooding, has reduced the amount of waste water flowing into the river.
“The river is an asset now. The water is cleaner, there are 60 species of fish in the river, and it is used recreationally by canoeists and people rowing shells,” said von Klan of the Friends of the Chicago River.
“Developers should do what is necessary to make the river attractive,” she said. “Residential projects along the river should be designed so that they permit public access to walks along the water.”
That will happen at River Bend, RiverView and Kinzie Park, which have included riverwalks in their plans. Randolph Place is separated from the river by railroad tracks.
“The river is our front door,” said B.J. Spathies, president of Bejco, developer of River Bend.
“We’ll have boat slips along the sea wall, a public riverwalk and a pocket park just to the south along the water,” added Spathies.
The condo building will curve to follow the river.
Several other sites along the river are being eyed by developers, according to Christine Slattery, deputy commissioner in the zoning division of the city’s Department of Planning and Development.
Immediately south of River Bend is a tract that could be developed by using air rights to build over the railroad tracks.
“The Levy Organization is negotiating with developers Bruce Abrams and Richard Stein for possible office construction, but the site could be residential and there is no limit to the number of dwelling units,” Slattery said.
Across the river at Wolf Point, a three-level parking garage stands in front of the Apparel Center. Slattery views that property as another possible residential location.
Farther up the North Branch on the east side, south of Erie Street, are two vacant parcels. A 19-story building with 241 residential units has been suggested for the site next to the Ontario Street ramp to the expressway, and 90 midrise condos for the adjoining property, she said.
North of Erie on the river is the 28-acre Montgomery Ward complex, which has been acquired by Ocean Atlantic Development Corp. of Alexandria, Va. The site could be developed with a mix of uses, including residential, but plans have not yet been revealed.
Still farther up the river, at the south end of Goose Island, an existing eight-story building may be converted for a maximum of 100 live/work rental apartments, according to Slattery.
North of Goose Island is another new river project that will be built on the former site of the Henry C. Grebe & Co. Boatyard at Belmont Avenue. Burnside Construction Co. is planning 88 townhouses and 112 condominiums there, priced from $119,900 to $295,900.
“South of River City (on the South Branch, north of Roosevelt Road), proposals have been pending for years to develop about 25 acres for mixed uses, including residential,” Slattery said.
“The river is Chicago’s second greatest resource, after the lake,” said Ronald Shipka, president and chief executive officer of Enterprise Development, co-developer of Kinzie Park, along with the Habitat Co.
Douglas (Rick) Woodsworth, president of Habitat, attributes the boom in river residences to the general increase in downtown development.
“The number of available sites is limited, so it was natural to look at land on the river,” he said.
Dan McLean, president and CEO of MCL Companies, praised the Friends of the Chicago River for leading the way in river improvements.
“Then the city embraced the idea,” he said.
Explaining the increased value of the river, he said: “Water is soothing. It may be the No. 1 amenity.”
And buyers apparently are willing to pay for it.
The 19 townhouses along the water at RiverView are aimed at the luxury market, with hefty price tags ranging from $1.1 million to $2.1 million.
Even at these prices, the buyers will have to share the river with the public. The residences will have a private, 30-foot yard lined with a wrought-iron fence. Beyond that there will be a landscaped buffer and then the 30-foot-wide esplanade along the water. Open to all, this riverwalk will connect with Centennial Fountain and Water Arc to the west and continue all the way to Michigan Avenue.
Construction of the townhouses and the east condo tower is scheduled to begin this fall, with completion in 2000.
The popularity of the river has ebbed and flowed over the years.
Chicago’s first settlers built along the river, and in the 19th Century it teemed with freight and passenger vessels.
“This is where Chicago started–the commerce of the city grew up on the banks of the Chicago River,” said Michael Lerner, developer of Randolph Place.
He pointed out that the river has come full circle by returning to its residential roots.
Before that happened, though, the river fell into disfavor. In the early years of this century, the old factories and warehouses along its banks began to be replaced by office buildings. At that time the river often was seen as an impediment to development, and many of the offices turned their backs on the water.
There were a few notable exceptions, including Marina City (built in 1964) and River City (1985), which recognized the value of water as a residential amenity.
Meanwhile, the City of Chicago is pushing a plan for the revitalization of the river. It includes these objectives:
To encourage economic development, to create a connected greenway and path along at least one side of the river, to develop the river as a recreational amenity and to protect the water quality.
If achieved, these goals would further enhance the river as a desirable place for residents as well as the general public.
“The goal is to reclaim the river for recreational uses,” said Joseph Zehnder, deputy commissioner of the city’s Department of Planning and Development.
Already, the city is moving ahead with three projects that are targeted for completion this year. They are the Riverwalk Gateway, on the south side of the Main Branch under Lake Shore Drive; a Rush Street Park, on the north side of the Main Branch at the Wendella dock; and the Erie Street Terraces, on the east side of the North Branch.
Projects scheduled for next year include a 300 South Wacker Park and a Chinatown Park.
Zehnder added that one of the innovative ideas being considered is the use of floating walkways, particularly below bridges, so that the riverwalk can be continuous.
The attractiveness of the river received a boost this summer with the opening of four outdoor cafes on the south side of the Main Branch. They are below the bridges at State, Clark and LaSalle Streets.
