X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Skepticism from members of the community development commission could be expected this week before they unanimously recommended a $12.3-million sale of “Block 37″ to Mills Corp. The $336-million retail and entertainment base of what could ultimately grow to a two-million-sf redevelopment is hardly the first proposal to come and go in more than a decade.

The involvement of well-heeled Arlington, VA-based Mills Corp. is one reason city officials are confident the development, which ultimately promises to generate $17.5 million a year in property and sales tax revenue, will be built pretty much as planned. If there is any gamble to Mills Corp.’s proposal for 108 N. State St., though, it appears to be two towers that could contain multifamily units and hotel rooms.

Mills Corp. is building what it knows best–the 417,000-sf retail and entertainment portion of the development that will be “the podium” for 108 N. State St. Although negotiations are under way with CBS to take 100,000 sf to anchor a 400,000-sf office tower, that project would be built by Lincoln Property Co. Meanwhile, Mills Corp. is in negotiations with developers for the other two towers, says executive vice president of development Steven J. Jacobsen.

Those towers could be 200 to 300 units, and the mixture between residences and hotel rooms will be driven largely by the market, Jacobsen and city officials emphasize. That flexibility improves the odds of the towers being built, suggests Terri Haymaker, deputy commissioner of the department of planning and development. However, some were uneasy about the possibility of that portion of the project failing to materialize.

“The last thing we want is 450,000 sf of retail and an unfinished tower,” Jacobsen says. “This is very important to the company. “

So far, though, Jacobsen says there is “strong interest” from hotel developers, particularly because the base of the entire 108 N. State St. also includes a $172-million Chicago Transit Authority station three stories underground. It will offer express service to O’Hare International Airport, as the CTA’s Red line is connected to the Blue Line, which runs down the middle of the Kennedy Expressway to the airport.

Also overseeing the company’s redevelopment of Piers 27-31 in San Francisco as well as Vaughn Mills in Toronto, the 108 N. State St. assignment is a homecoming for Jacobsen. The architect is a Chicago native, received his degree Downstate at the University of Illinois as well as Downtown at Roosevelt University. “What’s important for me is to come back and do a project like this in the city,” he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.