CHICAGO—The apartment surge which has swept the neighborhoods adjacent to downtown will soon hit the Illinois Medical District on Chicago's Near West Side . Guggenheim Real Estate LLC , has just formed a joint venture partnership with Atlantic Realty Partners and Focus Development Inc. to renovate its Medical District Apartments, a 410-unit rental community located along Ashland Ave. between Polk and Taylor streets. And it's probably not the last major project that developers will undertake in the area over the next few years. “There is a rush to develop the Near West Side because of the pent-up demand,” Susan Tjarksen , principal and managing broker at KIG , which arranged the partnership, tells GlobeSt.com. “There has been no new construction there since 1974,” and this is a neighborhood which through its hospitals, medical schools and clinics provides an extraordinary number of highly-paid jobs. “It's the hottest neighborhood in Chicago right now.” Tjarksen estimates that this could eventually be a nearly $300 million project, including the cost of acquisition, renovation of the existing units, which were built in 1972, and the construction of a mix of new residences. The approximately 5.65 acre property includes two 12-story residential towers, as well as a pair of two-story garage decks. “This site offers tremendous upside potential through a combination of value-add renovation and ground-up development,” Tjarksen adds. “We had every major developer in the city of Chicago submit a response to this RFP.” GRE eventually selected Atlantic Realty Partners and Focus Development's joint equity, development and construction plan from a pool of eight potential partners sourced by KIG. Atlanta-based Atlantic and Northfield, IL-based Focus Development will co-develop the property, while Focus Construction will serve as the general contractor for the rehab and new construction. Tjarksen and KIG managing partner Todd Stofflet led the team that represented GRE in the formation of the joint venture. Currently 94% occupied, Medical District Apartments includes a mix of studio, one- and two-bedroom apartments just steps from Rush University Medical Center , the University of Illinois at Chicago and several major bus and rail lines. About 30,000 people work in the Illinois Medical District, but the property also offers quick access to the CBD and West Loop, which has recently attracted high-profile employers like Google and McDonald's . "This project checks all the boxes for us: value add, TOD, retail adjacency and walkability,” says Richard Aaronson , president and chief executive officer of Atlantic Realty Partners. “We are excited to bring new investment and new housing options to the Little Italy/University Village neighborhood." This project alone could mean around 500 new units in the district, Tjarksen adds. And over the next five to seven years, she estimates the development community could build as many as 3,000 in the surrounding area. “Rents there have increased to the point that it makes economic sense to start new construction.” Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more. CHICAGO—The apartment surge which has swept the neighborhoods adjacent to downtown will soon hit the Illinois Medical District on Chicago's Near West Side . Guggenheim Real Estate LLC , has just formed a joint venture partnership with Atlantic Realty Partners and Focus Development Inc. to renovate its Medical District Apartments, a 410-unit rental community located along Ashland Ave. between Polk and Taylor streets. And it's probably not the last major project that developers will undertake in the area over the next few years. “There is a rush to develop the Near West Side because of the pent-up demand,” Susan Tjarksen , principal and managing broker at KIG , which arranged the partnership, tells GlobeSt.com. “There has been no new construction there since 1974,” and this is a neighborhood which through its hospitals, medical schools and clinics provides an extraordinary number of highly-paid jobs. “It's the hottest neighborhood in Chicago right now.” Tjarksen estimates that this could eventually be a nearly $300 million project, including the cost of acquisition, renovation of the existing units, which were built in 1972, and the construction of a mix of new residences. The approximately 5.65 acre property includes two 12-story residential towers, as well as a pair of two-story garage decks. “This site offers tremendous upside potential through a combination of value-add renovation and ground-up development,” Tjarksen adds. “We had every major developer in the city of Chicago submit a response to this RFP.” GRE eventually selected Atlantic Realty Partners and Focus Development's joint equity, development and construction plan from a pool of eight potential partners sourced by KIG. Atlanta-based Atlantic and Northfield, IL-based Focus Development will co-develop the property, while Focus Construction will serve as the general contractor for the rehab and new construction. Tjarksen and KIG managing partner Todd Stofflet led the team that represented GRE in the formation of the joint venture. Currently 94% occupied, Medical District Apartments includes a mix of studio, one- and two-bedroom apartments just steps from Rush University Medical Center , the University of Illinois at Chicago and several major bus and rail lines. About 30,000 people work in the Illinois Medical District, but the property also offers quick access to the CBD and West Loop, which has recently attracted high-profile employers like NOT FOR REPRINT
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