New Mixed-Use Development Approved for Chicago's Loop

- The project, named ACōDA, is a $162.2 million, 25-story tower developed by the minority-led firm DL3 Realty. It will feature 300 mixed-income apartments, with 20% designated as affordable, alongside retail, co-working spaces, and live/work lofts. The developer will also fund at least $1.5 million in upgrades to the adjacent Pritzker Park. - This development is part of a broader city strategy to revitalize the southern portion of the State Street corridor and increase residential density in the Loop. The Loop's population is growing, and its 70% of housing inventory has been built in the last 27 years. Adding 5,000 new housing units could bring up to 8,000 new residents to the area in the next five years. - The project reflects a larger trend of converting underutilized downtown properties. Chicago is actively encouraging office-to-residential conversions through initiatives like the "LaSalle Street Reimagined" program, which uses Tax Increment Financing (TIF) to help create new apartments, a significant portion of which are affordable. - Institutional capital is returning to Chicago's real estate market, targeting both new construction and value-add opportunities. While financing has been tight, Midwest markets are attracting investors due to sustained rent growth compared to other U.S. regions. Chicago's multifamily market, in particular, benefits from limited new supply, with only about 550 new units expected to be delivered downtown in 2026, which should support continued occupancy and rent growth. - The development team includes general contractors Power Construction and UJAMAA Construction, with architectural design by Perkins & Will. This selection was the result of a 2025 Request for Proposals issued by the city's Department of Planning and Development, which chose ACōDA over two other competing proposals. - While the Loop's residential market is expanding, housing prices have seen a recent downturn. In January 2026, the median home price in the Loop was $370,000, a decrease of 8.6% compared to the previous year. However, the broader Chicago market for attached homes (condos and apartments) has shown resilience, with a 10.7% year-over-year price increase, signaling a strong urban market. - This project is not the first proposal for the site at 331 S. Plymouth Court. A previous winning design from 2021, called "Assemble Chicago" and led by The Community Builders with a design from Studio Gang, was initially planned as a 20-story, 207-unit carbon-neutral tower but was later scaled back due to financing challenges.