CHICAGO — Tree Street Group, along with Magellan Development Group and Mark Goodman & Associates, will co-develop the first geothermal-powered, all-electric multifamily high-rise in Chicago. The 33-story building, 410 North Elizabeth, will be the first phase of a two-tower, mixed-use development in the city’s Fulton Market District.
Bank OZK, the senior lender on the project, provided a $102 million construction loan for the development, according to various media sources. Beach Point Capital and Circle Property Partners were the junior lenders.
“Closing on financing for 410 North Elizabeth is a significant milestone for our team, one that dares to achieve what no one else has attempted — Chicago’s first geothermal multifamily high-rise,” says Ted Weldon, principal of Tree Street Group. “Our ability to move forward on this project underscores the faith of the many parties involved that Chicago is a national leader in sustainable development and a premier market for institutional investment.”
The geothermal system, along with other key design features, has the potential to reduce energy usage by an estimated 60 percent. As a result of lower energy use, the building is projected to reduce emissions by 30 percent and energy cost savings by more than 25 percent.
According to the U.S. Department of Energy, geothermal systems operate by using the earth’s consistent underground temperature to heat buildings in the winter, cool them in the summer and provide hot water.
401 North Elizabeth will include 383 apartments comprising 38 studios, 87 one-bedroom, 256 two-bedroom and two three-bedroom floorplans. Approximately 77 of the units will be designated as affordable.
Upon completion of both phases, the two-tower project will offer more than 724 apartments, including 146 affordable units. The construction timeline for project completion was not released.
Designed by Archeo Design Studio, each tower will feature a gridded façade with metal paneling and glazing by Reflection Window + Wall, as well as ground floor retail space that sits adjacent to a park that will be open to the public. Clark Construction Group is serving as the project’s general contractor, and Integra-X-Builders, which has experience with geothermal-powered projects, will be providing construction management services.
Founded by Rodrigo d’Escoto, Theodore Weldon and Ed Kruschka, Chicago-based Tree Street Group’s current pipeline includes approximately $1 billion in next-generation developments that emphasize energy efficiency and sustainability.
Headquartered in Chicago, Magellan Development has delivered more than $8 billion in total development value across residential, hotel, office and retail projects.
Mark Goodman & Associates, a Chicago-based real estate firm specializing in development, investment and construction management, has completed over $2 billion in real estate transactions since 1978.