Crain’s: Cityfront Plaza Condo/Hotel Tower Plan in Streeterville
What market downturn?
Crain’s is reporting that a North Shore developer has a tentative agreement to purchase land in Centrum’s Cityfront Plaza development for a possible 50-story hotel/condo high rise.
From Crain’s:
David Hovey, president of Glencoe-based Optima Inc., has a tentative deal to buy a site just north of NBC Tower, 455 N. Cityfront Plaza Drive, from a joint venture that includes Chicago developer Centrum Properties Inc., people familiar with the deal say. The exact purchase price could not be determined, but is between $45 million and $50 million, surprisingly strong given the fierce decline in the downtown market for new, high-priced condos.
The developer’s current projects are in the suburbs and include Optima Old Orchard Woods and a 28-story highrise in Evanston.
Reflecting the rest of the downtown market, sales have been slow in the second tower of the Cityfront Plaza development:
Mr. Hovey’s Streeterville tower would be the third phase of a three-stage high-rise development called Cityfront Plaza that stretches from St. Clair Street to Fairbanks Court along Illinois Street.
The first phase is a 31-story condo building at the corner of Fairbanks and Illinois, which Centrum completed last fall. About 90% of the building’s 281 units have been sold.
Condo sales have gone more slowly for Centrum’s second phase, a 41-story building proposed for the corner of St. Clair and Illinois. About 40% of the proposed 253 units in that building are said to be under contract.
According to the article, they are already in talks with luxury hotel companies about a partnership.
Stay tuned.
North Shore developer eyes Streeterville tower [Crain’s]
David Hovey is a very good architect, some would say great, and the Optima project Old Orchard Woods was very well done. I know alot of people that are waiting on Optima to do a project in the city proper. There is a good chance this is a long term plan, a developer has a lot of work to do before a project can happen, and it only makes sense to get your ducks in a row for when the economy eventually rebounds. If this is the case it would be the second major tower in the immediate area going this route. The other being the Fordham/Waldorf proposal. I’m crossing my fingers on this one. SSDD
Yeah, I can’t wait to see what Hovey comes up with for this site. The Optima projects in the North Shore are striking and attractive.
Have any of you actually been inside any of the Optima Units? The exteriors of the Optima projects are very creative, but the interiors are no different than any other standard inexpensive modern condo built in the last 10 years. Then there is the question of building quality, which should cause one to remain censorious. Optima Views and Optima Horizons (both new high rise projects in Evanston) have had numerous problems causing lots of legal battles between Homeowners and Hovey.
It seems like on every block of Steeterville there’s something new or “planned” going up. Who’s buying all of these new $600+ condos in this market??
^ I’ve heard about issues with the Optima tower in Evanston, both the construction issues and some weird layouts, but no such issues with Old Orchard Woods…..yet.
Hovey does have a level of eccentricity though, so some units with strange layouts aren’t too surprising. Hopefully by the time he designs the Streeterville tower he’ll figured this out, lest it go the way of Ralph Johnson’s Skybridge, a striking tower with mostly piss-poor living spaces and thus long market times.
David Hovey’s developments reflect his role as architect, developer, and general contractor. No other Chicago developer personally fills all three roles. His projects are well-constructed, and the interior finish choices will “age” well designwise. He also prices his developments slightly below market average price, and he historically outsells (market absorption rate)any other residential developer in the Chicago marketplace.
Hovey has consistently embraced the modernist principles in his building design for over two decades. His exteriors and curtain walls are notable and stand out from the typical developer design. He is innovative with construction, which has positives and negatives. Interior spaces seem to be fine, as long as one doesn’t have an expectation for high ceilings, open kitchens with an island, or high quality finishes. Prices tend to be on the higher side. Hovey’s greatest contribution is his ability to take marginal pieces of property and create a successful and beautiful addition to a community. Old Orchard Woods and his projects in Evanston are great examples.