$2.5-Bil Lakeshore East Project Clears Planning Hurdle

Lakeshore East Development Group envisions a "town within a city" east of Columbus Drive between Randolph Street and Wacker Drive. The residential component of the mixed-use development includes seven condominium towers with about 2,350 units, five rental buildings with an additional 2,300 apartments, and 200 townhouses. In addition, plans call for 2.4 million sf of office space in two towers, 200,000 sf of retail space and at least one hotel. The developer also will create a six-acre park and public elementary school.

The site is part of the 83-acre Illinois Center complex and is now used as a nine-hole golf course. "It is one of the most desirable development sites within a major metropolitan area in the United States," says Joel Carlins, president of Magellan Development Group, which is teaming up with fellow residential developer Near North Properties Inc. to form Lakeshore East Development Group.

The number of residential units is down by nearly half from the 9,050 approved in 1993. While seeking official city approval, Lakeshore East Development Group followed what has become a top priority for developers here: win support of neighborhood groups. Friends of the Park, the Metropolitan Planning Council and Greater North Michigan Avenue Association were among the groups lending their support to the proposal. "We are pleased that they have sought the council's input and we have resolved a number of concerns to our mutual satisfaction," says Robert O'Neill, president of the Grant Park Advisory Council. "We are particularly pleased that the developer has included a park facility and public elementary school in the proposal and we look forward to continuing this cooperative relationship as the program proceeds."

Lakeshore East Development Group made changes in their initial plan that cut the size of the development by nearly one-third to 9.7 million sf, eliminated plans for townhomes to preserve the view of an adjacent multifamily building, changed elevations to preserve the view of another multifamily building as well as increased space between its projects and neighboring buildings.

"Our plan recognizes the importance of scale and position so as to preserve and enhance views not only for the future residents and workers in this neighborhood, but for those who live and work here now," says James Loewenberg, president of Near North Properties and an architect. "Our plan carefully situates the buildings in a manner that takes advantage of Lakeshore East's proximity to the Chicago River to the north, Lake Michigan to the east, the new Millennium Park at the north end of adjacent Grant Park, and the park within the site."

The two 30- and 60-story condominium buildings, 50 townhomes and the park would be built first, with sales of the residential units beginning this summer. "If everything goes according to plan, we project first occupancy for 18 to 22 months after construction begins," Carlins says. "This means that some people will be calling Lakeshore East home in spring or summer 2003." Condominiums will sell from $225,000 to $2 million while townhomes will sell for $500,000 to $2.5 million.