A New York developer wants to build a 135-unit apartment building in Logan Square, joining a swelling list of builders pushing multifamily projects on the Northwest Side.
A venture of Property Markets Group Inc. wants to develop its building on a vacant lot at Milwaukee and Talman avenues, according to a zoning application it recently filed with the city.
“We're big believers in Logan Square,” said Noah Gottlieb, senior managing director for Property Markets in Chicago. “We love everything that's happening there.”
Amid strong apartment demand and low supply on the Northwest Side, builders are trying to kick-start new rental developments from West Town to Wicker Park to Logan Square.
The bet is that tenants are ready to plunk down higher rents for new residences near Blue Line transit stations, restaurants and other amenities. Property Markets' development and others will test whether rents in fast-changing Logan Square have risen to at least $2 per square foot, considered the minimum necessary to justify the costs of a new project.
“I think you can get two bucks up there,” said Chicago investor and developer Mark Sutherland, who's developing a 41-unit rental building about a block from the Division stop on the Blue Line in Wicker Park. “Can you get two and a quarter? Two-fifty? Maybe you can. We'll see.”
Designed by Chicago architecture firm Brininstool + Lynch Ltd., the 79-foot-tall apartment complex also would include 15,000 square feet of ground-level retail space, 141 parking spaces and 144 bike-parking spaces, according to the zoning application. The 135 units would include one-, two- and three-bedroom rental options, Mr. Gottlieb said.
He wouldn't say how much the firm would seek in rent but said it can charge at least $2 per square foot.
Property Markets' Chicago portfolio includes several smaller apartment buildings around the city, according to the company's website. In New York, the firm is part of a group developing a 1,350-foot-tall residential tower south of Central Park, among other projects there, and is also creating new towers in South Florida.
One the biggest challenges Property Markets faces in Logan Square is persuading neighbors near the site and ultimately Ald. Joe Moreno (1st), who represents the area in the City Council, to support a zoning change that would allow the project to go forward.
Recently, some Logan Square residents resisted Chicago-based Savoy Development LLC's proposed 63-unit apartment building at 2340 N. California Ave. in Logan Square, according to DNAInfo Chicago, describing that project as too dense.
Mr. Gottlieb said his firm presented the proposed development to the Greater Goethe Neighbors Association, a Logan Square community group, and has incorporated feedback from area residents into the project. He declined to comment on discussions with Mr. Moreno.
The developer also must buy the land parcel where it wants to build from Chicago-based Gibbons Construction LLC, which acquired it for about $1.1 million in 2012, records show.
Mr. Gottlieb declined to say how his firm will pay for the parcel. Patrick Gibbons, owner of his namesake firm, did not return calls.