ChicagoDowntown / Loop

Division Street apartments secure financing

by Joe Zekas on 7/8/14

A month ago we visited a site at 625 W Division St that had just been cleared in preparation for construction of a 19-story, 240-unit apartment tower.

At the time, we questioned whether the project has the weakest location of any of the Near North Side developments on our at-a-glance list of new downtown apartment projects.

The site’s one clear plus factor is the new Target directly across Division St. Proximity to the Kennedy Expressway is a theoretical plus that dissolves in traffic that’s often painfully slow. There are almost no bars, restaurants, retail or other neighborhood attractions within a short walk of the property. CTA train lines are beyond walking distance.

Chicago Real Estate Daily is reporting that the project has secured a $45.3 million loan, so we’ll one day learn how renters rate this location in comparison with developments planned for locations further east.

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Related posts:

  1. Demolition complete at Division Street apartment site
  2. 11 West Division apartments, Gold Coast
  3. Apartments filling in a bleak stretch of Clark Street
  4. Elm Street Plaza apartments, 1130 N Dearborn St, Gold Coast
  5. Another West Loop apartment project secures financing

{ 3 comments… read them below or add one }

Hello July 8, 2014 at 9:34 AM

Hopefully this development with all the other going on in the area will attract investment in “bars, restaurants, retail or other neighborhood attractions within a short walk of the property. ” Honestly this place isn’t going to be too far from New City, and maybe one day they will build a Divison St. Brown line El stop!

The division St. bridges connecting goose island getting widened and replaced will hopefully help traffic getting to the Kennedy.

There’s plenty of “weaker” locations out there in my opinion (by the time this is built) ,and I would expect these rentals to be priced in the $2/sqft/mo rather than the $3/sqft/mo like the new builds in River North

Reply

Joe Zekas July 8, 2014 at 10:22 AM

Hello,

625 W Division is a half-mile from New City and a half-mile from where a Division St Brown Line stop might someday be built.

I agree that the bridge make-over will help with the traffic problem.

As with your comments on a previous post you ignore my reference to specific projects in stronger locations, preferring a comparison to unnamed locations.

What’s your basis for expecting $2 rentals? This project’s cost basis can’t possibly differ that much from the basis of the $3 rentals.

Reply

Hello July 8, 2014 at 12:02 PM

Why not, the cost of the land was probably a lot cheaper? I’m sure they told the bank they could probably sucker someone to live in a 1k sqft 2/2 for $3k a month in this location, but the reality isn’t there as rentals in the area are in the $2 range. Then again, people do like “new”…

I would also consider 1/2 a mile “walking distance”, but that is just semantics. Also I do understand your point about that of the “new” projects this one is the worst location. You aren’t saying its a bad location, just the worst of the new builds.

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