This week an already roiling real estate market in Chicago’s West Loop got hotter still. The latest entrant is a $400 million mixed-use tower designed by Goettsch Partners—a 350-room, four-star hotel beneath about 600,000 square feet of offices that will surely stoke the continued evolution of the area from post-industrial grittiness into a sleek, high-rent hub for technology companies and haute cuisine.
Crain’s Chicago Business reported Florida-based developer Joseph Mizrachi will further thicken an already competitive field of downtown office space, building on his 2012 acquisition of a 1.1 million-square-foot office tower at 540 West Madison Street. His group, Third Millennium Partners, hopes to start work by mid-2015 on a 1.2 million-square-foot building just to the west, at 590 West Madison Street.
Goettsch Partners’ design is restrained, concealing its luxury hotel rooms and undoubtedly high-tech offices in tranquil planes of glass, scored with white mullions that stripe the building’s bifurcated mass vertically.
As for the crowded market, Crain’s says Mizrachi enjoys an advantage over the competition:
Because the foundation already was poured for the new building years ago when a second office tower was planned, the new tower can be built in as little as 20 months, giving Mizrachi’s plan an advantage over some competitors, [J.F. McKinney & Associates Executive Vice President Mark] Gunderson said. Work could begin with as little as 200,000 square feet of office space leased in advance, he said.
It also might compete by offering office rents slightly lower than its neighbors, which include 52 and 53 story towers from developers Hines Interests and John O’Donnell.