The market for downtown apartments, squeezed over the last few years by rampant condominium conversion, may be loosening up a bit as another new rental high-rise was announced Friday.
Chicago developer Royal Imperial Group will erect a 46-story, 387-unit apartment building on the southeast corner of LaSalle and Kinzie Streets, according to New York investment firm Boston Financial, which is helping to fund it.
Called the Sterling, the building will have rooftop tennis courts, a sun deck, swimming pool, fitness center and 24-hour doorman service. The project will include a 611-space free-standing garage.
The announcement was the second in less than a month for a new downtown rental building. A 36-story, 230-unit high-rise is planned for the corner of Chestnut and LaSalle Streets.
“The market dynamics for apartments in downtown Chicago continue to be strong, with steady demand, rising rents and increasing barriers to entry for new developments,” said Gregory Day, director of Boston Financial’s investment banking group.
Royal Imperial Group has developed projects ranging from a retirement community in Hazel Crest to loft conversions in the Printers Row area of the South Loop. The firm was a partner in the development a decade ago of a River North office building at 350 N. LaSalle St. across from the new apartment project.
The building, with an address of 333 N. LaSalle St., will be right next to the Cook County Traffic Court building, which a developer is planning to redevelop for loft apartments and trendy shops when the county moves to a new location, a change being urged by Mayor Richard Daley.
Construction is planned to start this summer on the new apartment tower, which is being designed by Chicago architects Solomon Cordwell Buenz & Associates. It will have a mix of units from studios to three-bedroom apartments. Proposed rents were not disclosed.
