Co-developer Martin G. Tuohy has done two other build-to-suit projects for the state agency in the suburbs of Melrose Park and Park City. His 2650, LLC signed a lease in late March with the department, which is being forced out of its current quarters at 412 N. Milwaukee Ave. In addition, the state wants to consolidate case workers and other social services under one roof, Tuohy says.
The owner of that property is capitalizing on the West Loop and River North redevelopment boom, Tuohy indicates.
Tuohy admits his partnership is taking a gamble by doing build-outs that will be capitalized over 15 years, even though the state's initial commitment is only five years. However, he expects the department's 150 employees to be working at the former Niedermaier Co. furniture shop for at least a decade.
"They don't tend to move," Tuohy says of state tenants.
The project is being financed by GE Capital Business Asset Financing Corp., according to the department of planning and development. The lease is a net deal, with the state paying property tax bills that are expected to jump from $49,000 to more than $125,000 a year.
Located in the Kinzie Industrial Corridor TIF area, the project is transit oriented, as it is located near the CTA Green Line's California Avenue stop as well as Western Avenue bus line. "This TIF has been one of the fastest-growing in the city of Chicago," says 27th Ward Alderman Walter Burnett. "It also includes a residential area west of California Avenue," he adds, which could help spur the building of more affordable housing.
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