In July, Sloniger plans to begin construction on the next phase of the development: a 24-story, 280-unit tower just west of Atrio, along Damen Avenue. Marquette is also planning a third building with nine floors totaling 120 units just south of Atrio.
The medical district and the surrounding district have received a lot of interest in recent years from real estate developers, betting that the demand for apartments, hotel rooms and commercial space will increase as the healthcare sector increases. expands. A redevelopment of the former Cook County hospital, long vacant finished last year, and a large mixed-use project called Gateway is underway just west of the Marquette site, although it has progressed slowly.
With Rush University Medical Center and the University of Illinois-Chicago close by, Sloniger expects to hire many students and workers in the area. He also likes his project’s proximity to the Medical District CTA station, which might appeal to downtown commuters, and Malcolm X College, just north of the Eisenhower Freeway.
The market “has a lot of depth. There are a lot of demand drivers out there, ”he said. “People want to live there because they can walk to El and walk to work.
Many Chicago apartment owners have suffered over the past year from the coronavirus pandemic and recession, but demand has held up better the further away from the city center. With ongoing vaccinations and optimism for the economy on the rise, 2021 should be a better year for apartment owners.
Marquette is counting on this in the rise of pre-leases at Atrio. The building’s asking rents range from $ 771 per month for a studio to $ 3,260 for the more expensive three-bedroom unit, according to real estate information provider CoStar Group. The average apartment rents for $ 1,835 per month, or $ 2.57 per square foot.
People who have not seen the tower since Marquette bought it may no longer recognize it. Built in the 1960s, the skyscraper had a Soviet-style look, with a dreary facade and small windows. Marquette didn’t change the building’s geometry, but its new glass and steel facade would fit in with the many buildings designed by Mies van der Rohe and their downtown Chicago imitators.
Marquette paid $ 28 million for 1926 W. Harrison in 2019; Sloniger declined to say how much the redevelopment will cost. The company is financing the project with a $ 37.8 million loan from Associated Bank.
“It was a building with a lot of deferred maintenance, and it was really really run down,” Sloniger said. “It’s one of those projects that takes a lot of work, but it’s very satisfying.
Atrio’s amenities will include a large fitness center, downstairs study and work rooms, and a penthouse lounge with views of downtown Chicago.
Marquette is in the final stages of planning and approval for its next building, the 24-story tower next door, which is licensed under the city’s current zoning. Marquette is teaming up on this project with its capital partner on Atrio, Kayne Anderson Capital Partners, based in Los Angeles. Companies still need to secure a construction loan before starting work, Sloniger said.
Marquette also has its hands full in the west loop, where he has completed, developed or planned more than 1,000 apartments.