CHICAGO—Developer Fifield Cos. just broke ground on NEXT, a 310-unit luxury apartment project in Chicago's River North neighborhood that it expects to deliver in early 2017. The groundbreaking ceremony took place on Tuesday as construction crews were already excavating the site. Thousands of young people have flocked to Chicago's amenity-rich urban core, but remain more reluctant than previous generations to purchase homes, and Fifield hopes the 28-story tower, located at 347 W. Chestnut St., will appeal to this demographic.
“With more and more multinational corporations and small technology startups moving into the city's River North neighborhood, the area north of Chicago Ave. in is in high demand by developers and potential residents alike,” said Randy Fifield, vice chair and principal at Fifield Cos., as she addressed the crowd. “Google is here, Amazon is coming, even Facebook is looking to Chicago for a new home. With more jobs comes the need for additional housing – housing that is more affordable for the next group of Chicagoans who are looking for starter homes near where they work, without forgoing the amenities they've become accustomed to. NEXT will provide just that.”
According to data from the US Census, the homeownership rate for those 35-and-under dropped to 35.9% in the second quarter of 2014, its lowest level in two decades, and held steady at 36% in the third quarter, meaning this group will drive demand for rental units in 2015.
The developers remain concerned, however, that many of the Chicago areas attracting jobs are not properly zoned. “River North, the West Loop and Goose Island have formed a creative and technology jobs triangle, which continues to drive more jobs and residences into this area; but our land use and planning don't reflect this evolution,” said Steve Fifield, the company's president and chief executive officer. “This very area where people want to live is zoned for low density commercial and industrial use.”
Although the company did get NEXT approved, he said the approval process was an uphill battle due to what he calls difficult land use and planning ordinances. “I challenge my peers in design, construction, development and finance to help the city realize the potential of this area and amend and update the zoning and planning to capture the jobs and housing Chicago continues to attract.”
The NEXT building will offer studio, one-, two- and three-bedroom luxury rental units ranging from 462 to 1,727 square feet. Fifield Cos. will include plank flooring, quartz countertops, glass tile backsplashes, Grohe faucets, oak-faced flat paneled cabinets, GE stainless steel appliances and oversized windows. Select units will also feature private balconies, master bedroom walk-in closets, and double-bowl bathroom vanities.
“The next generation loves convenience, flexibility, and amenities, and they love to share. They ride skateboards and bikes, and love technology and the latest apps,” added Randy Fifield. “Together with 27th Ward Alderman Burnett, Fifield Cos. has worked hard to bring these beautiful apartments – 85% of which are studios and one bedrooms – to this neighborhood to make life better, more efficient and more affordable.”
Pappageorge Haymes Partners has been retained as the building's principal architect. McHugh Construction will serve as the general contractor for the project and Soucie Horner, Ltd. will design the interior spaces.
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