Former Chicago Steel Mill Site to Get $74M Retail Development
By Colleen Corley, News Writer
Wednesday, October 5 2005
Wednesday, October 5 2005
Published on AllBusiness.com
Archon Group L.P. has purchased, and promptly begun razing, a 50-acre swath of prime South Side Chicago real estate for about $15 million. In addition to $31.5 million in tax increment financing from the city, Archon director Curt Bailey (pictured) said the company will pour about $74 million into the 420,000-square-foot retail center it has planned for the land, located on a former steel mill site.
Despite predictions for a "junky" retail season because of rising gas prices and the sluggish economy, retail projects continue to pop up, Bailey said. Archon is already actively looking to find another project and partner, and he noted that the Windy City isn't a bad place to do it.
"It's been the darling of the (retail) world for the past three or four years," he said. And as long as consumers keep spending, Bailey added, Archon will continue to invest. The company just completed one redevelopment project--the 550,000-square-foot Brickyard Mall--and has another 400,000-square-foot retail center under construction, both in Chicagoland.
But Chatham Market's South Side location holds an advantage over the wealthy Northwest suburbs, where the other two developments are located. "When you have densities like you have on the South Side, it's a completely different market," Bailey said, adding that finding large sites like the former steel mill is close to impossible there. More than 350,000 people live within a three-mile radius in the Chatham neighborhood, he explained, and every neighboring shopping center boasts 100-percent occupancy.
Developer Monroe Investment Partners L.L.C. had the property under contract for more than two years until the deal closed last week and Archon became the controlling partner in the joint venture, Bailey said.
The Market is set to open in the first quarter of 2007. Although Archon will only name one anchor--Lowe's--for its Chatham Market project, Bailey said the company already has several letters of intent signed.
Despite predictions for a "junky" retail season because of rising gas prices and the sluggish economy, retail projects continue to pop up, Bailey said. Archon is already actively looking to find another project and partner, and he noted that the Windy City isn't a bad place to do it.
"It's been the darling of the (retail) world for the past three or four years," he said. And as long as consumers keep spending, Bailey added, Archon will continue to invest. The company just completed one redevelopment project--the 550,000-square-foot Brickyard Mall--and has another 400,000-square-foot retail center under construction, both in Chicagoland.
But Chatham Market's South Side location holds an advantage over the wealthy Northwest suburbs, where the other two developments are located. "When you have densities like you have on the South Side, it's a completely different market," Bailey said, adding that finding large sites like the former steel mill is close to impossible there. More than 350,000 people live within a three-mile radius in the Chatham neighborhood, he explained, and every neighboring shopping center boasts 100-percent occupancy.
Developer Monroe Investment Partners L.L.C. had the property under contract for more than two years until the deal closed last week and Archon became the controlling partner in the joint venture, Bailey said.
The Market is set to open in the first quarter of 2007. Although Archon will only name one anchor--Lowe's--for its Chatham Market project, Bailey said the company already has several letters of intent signed.