Affordable Housing on Lasalle

A City Hall initiative to diversify LaSalle Street with mixed income housing in the wake of COVID vacancies and a shift in office investment to the West Loop has attracted six proposals for five buildings. Up to three winning applicants will be chosen by the end of March, a city official said. Three other proposals were withdrawn, incomplete or at an ineligible address.

The goal of “LaSalle Reimagined,” said Department of Planning and Development (DPD) Commissioner Maurice Cox, is to turn the thoroughfare into a '15-minute neighborhood' where affordable housing can be found" and all one's other needs are within a quick walk.

When originally presented in September, “LaSalle Reimagined” had a goal of 1000 housing units, 30 percent of them affordable. The number of housing units delivered will depend on how much assistance developers require, “but given the quality of the proposals received, we believe we will be able to meet our initial aspiration to assist in bring ing at least 1,000 new residential units to this corridor,” Department of Housing Director of Public Affairs Rima Alsammarae said in an email.

Although LaSalle Street has traditionally been the Loop’s financial, banking, legal and government office district, vacancies there are higher than any other downtown submarket for both retail (36%) and offices (26%), officials said in a webinar for applicants.

Moreover, "There is nearly 5 million square feet of vacant commercial space on the LaSalle Street corridor, but not a single unit of affordable housing," Mayor Lori Lightfoot said at the initiative’s unveiling in September.

Affordable housing on or adjacent to LaSalle between Washington and Jackson is the first goal. Proposals must provide a minimum 30 percent of units affordable to people earning 60 percent of the Area Median Income, which is $43,800 for a one-person household, ($50,040 for two persons). Adaptive reuse of underutilized landmark buildings and activation of their grand interior spaces is also a priority. The creation of ground floor assets such as grocery stores and small-scale dining and cultural attractions is yet another requirement.

City officials said they were encouraged by Google’s recent announcement that it would locate its headquarters in the James R. Thompson Center, formerly occupied by the state of Illinois.

Funding assistance to developers is expected to come from a variety of sources: Federal Rehabilitation Tax Credits, the Affordable Illinois property tax incentive provided by a state law passed in July 2021 in response to the pandemic, low-income housing tax credits, and Tax Increment Financing. The LaSalle-Central TIF was worth $197 million at the end of 2021.

City officials said in the webinar that a successful precedent for using TIF funds for housing downtown is the Randolph Tower City Apartments at 188 W. Randolph St., which had been vacant since 2007, with terra cotta in need of restoration. The $145 million project received a $34 million subsidy from the Randolph Wells TIF in 2010. It now has 310 units of housing, 20 percent of them affordable, as well as 2nd floor office space and a restaurant. However, a phone call to the apartments revealed a waitlist of one to five years for the affordable units.

105 W. Adams St. (Two proposals)

1. MAVEN Development Group proposes 423 studio, one- and two-bedroom units with 30% affordability (127 units). The $167 million project would also include a rooftop amenity deck.

2. The Reimagine Adams Limited Partnership, an affiliate of Celadon Partners and Blackwood Group proposes 247 studio, one-, two- and three-bedroom units with 75% affordability (185 units). The $192 million project would also include a tenant fitness room and roof deck, a public food market and a coffee shop. The high-rise was built in 1927 and is listed on the National Register of Historic Places.

111 W. Monroe St.

A proposed $180 million development by 111 W. Monroe LLC, an affiliate of Prime/Capri Interests LLC, would create 349 studio, one- and two-bedroom units with 30% affordability (105 units). The project would also include a new hotel on lower floors with a spa and fitness center, underground parking and a new rooftop pool and restaurant. The Ionic-columned brick and granite structure dates to 1910 and is listed on the National Register. It has been home to BMO Harris Bank, which announced in 2018 it would be moving to its new tower adjacent to Union Station.

135 S. LaSalle St.

Riverside Investment & Development/AmTrust proposes 430 studio, one- and two-bedroom units with 30% affordability (129 units) for the Art Deco Field Building, which is listed on the National Register. The $258 million project could also include up to 80,000 square feet of lobbies, retail, food and beverage, event and cultural space; and a fresh market grocer. Previously home to the LaSalle National Bank and the Bank of America (which has relocated to a tower on Wacker Drive), the 45-story skyscraper dates to 1934 and is listed on the National Historic Register of Historic Places. It was the last major office building constructed in Chicago until One Prudential Plaza in 1955.

208 S. LaSalle St.

UST Prime III Office Owner LLC, an affiliate of The Prime Group Inc., would spend $130 million to build 280 studio, one- and two-bedroom units with 30% affordability (84 units). Additional proposed improvements include a private dog run, fitness center, tenant lounge and access to the amenities of the two existing hotels within the building. The former Continental Bank Building was built in 1914 and is listed on the National Register of Historic Places.

30 N. LaSalle St.

Golub & Co. LLC/American General Life Insurance Co. would spend $186 million to redevelop the 1975 high-rise into 432 studio, one- and two-bedroom units, with 30% (130) of them affordable. There would also be ground floor retail, exterior green space, and seating along both Washington and LaSalle streets.

by Suzanne Hanney / photos provided by the City of Chicago