$1 Billion Chicago Real Estate Plan Proposed

May 30, 2012

‘Camelot’ wants to invest billions in Chicago real estate.

The Kennedy family has plans to construct a residential tower and two office buildings on the historic bank of the Chicago River in a project that would cost more than $1 billion.

On Tuesday, Kennedy Enterprises and its development partners, Hines Interest LP and Magellan Development Group, attended a community meeting to unveil Wolf Point, a three-phase building plan that includes a 525-foot-tall apartment tower with 500 luxury rental units, a 950-foot-tall commercial building and a 750-foot-tall commercial building that all together would total almost 3.7 million square feet.

The location would be on a 3.9-acre parcel along the north, south and east branches of the Chicago River, which famous patriarch Joseph Kennedy bought along with the Merchandise Mart in the 1940s. The Kennedy family sold the Mart in 1998 but held on to the nearby southwest property.

Under the plan, the towers would cover 22 percent of the total site, the rest would include new public parks and open spaces, enhancements to the 1,000-foot river walk area and a parking garage.

Wolf Point is expected to cost more than $1 billion and could create 2,000 construction and permanent jobs in Chicago. When completed, the project is estimated to generate more than $35 million in revenue for the city.

The developers said no public incentives, subsidies or tax increment financing will be requested for the job.

“The Wolf Point project is a major investment in the city and its future,” said Chris Kennedy, who runs the famous family’s business interests here.

“The project demonstrates the growing momentum of the economic recovery here in Chicago.”

Assuming the project is approved by the city, the apartment tower could be completed by 2014. The 950-foot-tall office building, which would rank in the top 10 of tallest skyscrapers in Chicago, would probably not be completed until 2018. The other building has a 2020 estimated completion date.

The project will not receive smooth sailing from residents, however. Check back to Chicagoland Real Estate Forum tomorrow for details on opposition to the Wolf Point project.

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