Two Major Residential Projects Advance in The Loop
Development momentum continues in Chicago's Loop with the selection of a mixed-use project for a city-owned site on South Plymouth Court. Separately, plans are moving forward for a development that will bring 300 new apartments near the Harold Washington Library. These projects signal continued investor confidence in the long-term residential viability of the city's central business district.
- The selected developer for the city-owned site at 331-35 S. Plymouth Court is DL3 Realty, a firm led by Leon Walker, known for its focus on impactful commercial projects in emerging Chicago communities, including redeveloping a former Target in Chatham and a historic building in Englewood. - The $162.2 million project, named ACōDA, will be a 25-story tower with 300 mixed-income apartments, 60 of which will be designated as affordable. The development is transit-oriented, including only 60 parking spaces for the 300 units, taking advantage of its proximity to multiple CTA lines. - As part of the development agreement, DL3 Realty will purchase the .35-acre site for its market value of $3.8 million and will also fund at least $1.5 million in improvements to the adjacent Pritzker Park, including a new performance space and enhanced lighting. - This project aligns with a broader trend of adaptive reuse and new construction aimed at bridging Chicago's housing supply gap; downtown is expected to see 1,664 new units in 2026, with 806 coming from adaptive reuse projects. - The Chicago multifamily market remains one of the nation's tightest, with inventory expanding at the fourth-slowest pace among major markets over the last three years and a vacancy rate of 5.0%, significantly below the U.S. average of 8.5%. - For seven consecutive quarters, Chicago has ranked among the top five U.S. markets for rent growth, a trend expected to continue through 2026 due to the constrained supply of new apartments. - Institutional investors are increasingly looking to Midwest markets like Chicago for higher initial yields; over the last two decades, Midwest apartment cap rates have been, on average, 45 basis points higher than the national benchmark. - For those looking to enter the field, Chicago has numerous real estate investor associations like CAREIA and networking events that provide opportunities to connect with local professionals and learn market specifics. Key publications that active Midwest investors read include REJournals and GlobeSt.
