CHICAGO — Ivanhoé Cambridge and Hines have plans to construct the $300 million River Point, a 900,000-square-foot office building located in downtown Chicago’s West Loop. Construction is slated to begin before the end of the year, and completion is scheduled for early 2016.
“The River Point project is truly exceptional, not only for its prime location and architectural quality, but also because it is taking shape at an auspicious moment, with all signs pointing to a substantial increase in demand for new office properties in downtown Chicago in the years to come,” says Bill Tresham, president of global investments for Ivanhoé Cambridge. “This is great news for Ivanhoé Cambridge, for Hines, for the City of Chicago and for the many large-scale corporations seeking prestigious and functional office space.”
Chicago’s 136.7 million-square-foot office CBD market reported a 14.9 percent vacancy rate at the end of the first quarter, a welcome decline from the 15.4 percent reported during the fourth quarter of 2011, says Matthew Ward, senior vice president of Skokie, Illinois-based The Alter Group.
“Downtown Chicago’s prospects going forward remain strong,” he says. “Strengthening consumer and professional/business services sectors will drive Chicago’s expansion. The local economy is expected to add 35,000 to 40,000 jobs in 2012 and 60,000 in 2013.”
Chicago Mayor Rahm Emanuel says the development will be on the largest real estate project to be launched in Chicago in the last 5 years. “River Point is a vote of confidence for our city, welcome news for the local economy and a signal that Chicago is leading the nation in job creation and economic development,” Emanuel says. “The investors and developers are starting this project because they see that Chicago is a city on the move, shaping its own future and attracting the best and the brightest.”
Pickard Chilton designed the 45-story building, which will be located at 444 West Lake Street on land co-owned by Larry Levy, a local business leader. The project is pre-certified LEED Gold. Additionally, construction will include a 1.5-acre public park atop the existing rail infrastructure that will connect the tower and its 450-linear feet of newly landscaped walkway to the Chicago Riverwalk.
“River Point will drive strong enthusiasm in the next-generation real estate product market and will be a striking addition to Chicago’s much loved and world-renowned architectural character,” says Kevin Shannahan, senior managing director and CEO for the Midwest and Southeast regions at Hines. “Ivanhoé Cambridge’s formidable commitment to this development and the city of Chicago today is a beacon for economic recovery.”
With a population of 9.6 million, metro Chicago is the third-largest MSA in the U.S. According to the Bureau of Labor Statistics, the unemployment rate in Chicago in March registered 9 percent, down from 9.5 percent in January.
Ivanhoé Cambridge is one of the world’s 10 largest real estate companies. The Montréal, Québec, Canada-based company owns 30 office buildings in the United States.
Houston-based Hines is a privately owned real estate firm with controlled assets valued at approximately $22.9 billion. The firm’s historical and current portfolio of projects that are under way, completed, acquired and managed include 1,192 properties and more than 482 million square feet.
— Savannah Duncan