Financing back in place for Michigan Avenue tower

Developers said Wednesday they will restart construction on a residential high-rise at 1000 S. Michigan Ave., a project stymied since July 2020 when the pandemic scared financiers.

Work will begin this month because Goldman Sachs and Deutsche Bank have pledged $304.5 million toward a construction loan, the developers said. The 73-story building, designed by the late architect Helmut Jahn, is expected to be finished in three years.

The co-developers are Time Equities, JK Equities and Oak Capitals. During the delay, they reworked the design, cutting the building’s height by 26 feet, to 805 feet, and changing it from condos to rental apartments. It will offer 738 units, including 23 classified as affordable under city ordinance.

Robert Singer, director of development at New York-based Time Equities, said the redesign makes the project more viable. “The market in Chicago for ultra-luxury rental apartments is very strong, and we see this segment of the market only strengthening from here. We look forward to delivering best-in-class apartments in late 2024,” he said.

The Chicago Plan Commission endorsed the revision in June when it approved changes to the parcel’s planned-development zoning.

Jahn died in May but his longtime second-in-command, Philip Castillo, is overseeing the project, the developers said.

Francis Greenburger, chairman of Time Equities, called Jahn “a world-renowned architectural genius” who is greatly missed. He said the building, prominently placed alongside Grant Park and on a historic boulevard, will be “further testament to his impact on the Chicago skyline.”

Chicago-based McHugh Construction will serve as the construction manager.

Jahn’s work in Chicago includes the United Airlines terminal at O’Hare Airport, the James R. Thompson Center in the Loop, the office tower at 500 W. Madison St. and the Joe and Rika Mansueto Library at the University of Chicago. The Thompson Center could be demolished because the state of Illinois is selling it.