Not Your Mom's Clark/Division

On the seam between Old Town and the Gold Coast lies the fabled mini-neighborhood of Clark and Division where the development gears are whirring. Actually, it's very real. And those of you who've ended a long night at Mother's or Butch McGuire's know what we mean.

JDL Development president Jim Letchinger has known the area literally his entire life (he grew up around Division and the lake). His recent 250-unit multifamily project with Hines (1225 Old Town), opened in August and is already 92% leased with rents well over $3/SF. Jim likes the high demand in the area and even more the high barrier to entry for new projects (JDL won zoning approval for 1225 back in 2009). He's bringing in a 28k SF Plum Market specialty grocery store this spring. He's also working with Harlem Irving on a proposed $30M mixed-use development across the street. In the midst of permitting, the proposed 71-unit apartment building with 10k SF of retail is being eyed by a "strong Chicago name" restaurant, Jim hints, and he hopes to break ground by the end of March.

The area north of Chicago Ave has been a development desert when it comes to rental products. Appraisal Research Counselors VP Ron DeVries (just back from some sun and fantastic golf at the NMHC annual meeting in Palm Springs) tells us before 1225 Old Town, all development was condo projects, little new land was available, and the high price of land when the market was hot kept rental projects out of reach. As land prices have adjusted and 1225 has shown the neighborhood can support $3/SF rents, more developers like Fifield have come into the fray. Ron (pictured with colleague Gail Lissner) says the product pipeline north of the Loop is still small and proximity to Wells Street nightlife will keep the construction cranes coming and rents growing to some of the highest downtown.