Catch Up on Chicago: 8 Big Updates

Retailers are finding space opportunities in store closures and relocations. Big Lots, Red Lobster, Rue21, Express and Family Dollar are among the brands closing locations across the metro. Although elevated office vacancy remains a pain point, tourism continues to come back following the pandemic. The city also received a big economic boost from hosting the Democratic National Convention in August, which attracted roughly 50,000 people. Construction momentum has swung in favor of redevelopment and mixed-use residential projects that are creating new retail and restaurant space options. Below is a look at some of the top projects and deals impacting the Chicago market.

$100M Redevelopment Takes Shape at Old Orchard Mall

Unibail-Rodamco-Westfield is moving forward with plans to transform its Old Orchard Mall into a mixed-use residential community. URW is partnering with Focus, a Chicago development company, on the suburban Skokie redevelopment. According to Patch, the two-phase project will raze the northwestern and northern portions of the mall, including the former Bloomingdale’s, to make room for new apartments above redesigned retail space. The first phase will encompass 425 apartments and 16,000 square feet of street-level retail in two buildings, as well as a central park and event space. The second phase will add a seven-story mixed-use building with an additional 250 residential units atop a new parking garage.

Changes Ahead for the Magnificent Mile?

North Michigan Avenue, aka the Magnificent Mile, traditionally has been a tourist draw and shopping destination, home to retailers from Apple and Nike to Tiffany & Co. and Armani. Yet challenges to regain foot traffic post-pandemic have sparked discussions on whether to “reimagine” this iconic retail destination. According to Axios Chicago, Gensler conducted a study that explores creative ways to connect North Michigan Avenue to Oak Street Beach. In addition, legislation has passed to create a business improvement district for the Mag Mile. A BID could be used to collect taxes to fund area improvements.

$53M Redevelopment Underway at Westridge Court

Brixmor has kicked off a $53 million redevelopment and reconfiguration of its Westridge Court shopping center in Naperville. The plan is to create a 91,000-square-foot restaurant and entertainment district called Block 59. Brands that have committed to the project include The Cheesecake Factory, Yard House, Ruth’s Chris Steak House, Shake Shack, FreshFin and Velvet Taco. An open-air, central plaza will serve as a public gathering place and hub for community events. Westridge Court is anchored by The Fresh Market; Ulta Beauty; Hollywood Palms cinema, bar and eatery; and a newly announced Wayfair Outlet.

CRM Eyes Residential Tower for Lincoln Park

CRM Properties Group is exploring possible demolition of its Clybourn Place shopping center in Lincoln Park to make way for a luxury apartment tower. According to CoStar, the owner is considering redevelopment into a mixed-use project called the Willow Street District. Initial plans include more than 70,000 square feet of retail, as well as parking and a pedestrian boulevard. The project would join several other mega residential developments that are proposed and underway in Chicago’s urban core.

Slow Progress for Lincoln Yards

Despite financial headwinds in this higher-interest rate environment, Chicago-based Sterling Bay continues work on plans for its Lincoln Yards development. Ahead of looming debt maturities, the firm recently listed three properties near the site for sale, according to Bisnow. Sterling Bay has ambitious plans for the 53-acre Lincoln Yards. Located on former industrial land along the Chicago River, the master plan for the 14.5 million-square-foot development includes office, life sciences, residential and retail. The first project, a 285,000-square-foot life sciences building overlooking the river, opened this year at 1229 W. Concord Place.

New Grant Program Targets Food Deserts

The state of Illinois hopes to incentivize grocery store development in local food deserts. According to Progressive Grocer, grants from $160,000 up to $2.4 million will be available to small supermarket operators who open new stores in areas defined as food deserts. Funds are available as part of the New Stores in Food Deserts Program and can be used for costs associated with construction or renovation to create new stores, as well as for start-up costs. To qualify, a supermarket must earn less than 30% of its revenue from alcohol and tobacco sales, must offer a diversity of fresh foods and must accept certain food-assistance programs as payment from consumers. Retailers that run more than four grocery locations are not eligible.

NewMark Merrill Adds to Chicago Portfolio

NewMark Merrill Cos. is expanding its portfolio in the Chicago metro. The California-based company acquired the Marketplace at Six Corners in Portage Park in April. Jewel-Osco anchors the 117,000-square-foot shopping center. According to the Chicago Business Journal, this is the third neighborhood retail center NewMark Merrill has acquired in the metro in the past 18 months, bringing its Chicago-area retail portfolio to six properties.

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Jack in the Box Has Big Plans for Chicago

Jack in the Box has announced an expansion into the Chicago market via eight corporate stores that will open in 2025: one in Chicago and seven in the suburbs. The fast-food chain has identified more than 125 location opportunities in the trade area for future corporate and/or franchise development. It has about 600 restaurants across 16 states.