Illinois is an economic hub in the Midwest. And Chicago is its gem.
When it comes to real estate development, this city is THE place to do it best! And if you’re looking for a good neighborhood to move into in close the future, the 78 in Chicago is going to be a solid bet.
What is the 78?
Navigating Chicago is a unique experience. This city currently has 77 community areas!
These areas came from the mapping of two sociologists of the University of Chicago - Robert E. Park and Ernest Burgess. During the late 1920s, they grouped the neighborhoods and surrounding areas. Chicago added O'Hare in 1956 and Edgewater in 1980.
The 78 is the latest and largest community to be developed in the city of Chicago. This mega-development spans 62 acres and 13 million square feet. It seeks to transform a long-unused land into a masterfully planned mixed-use neighborhood.
Specifically, this will take the vacant riverfront parcel between Chicago’s South Loop and Chinatown, and turn this area into a fine location with a vibrant mix of architectural design. It will be going towards sustainable, smart, and modern real estate development.
For starters, the 78 is going to have commercial and residential districts, wide, open green spaces, and infrastructure advancements, especially for transportation. And for people saving up for homes, twenty percent of this community area will go to affordable housing.
This 7.2-billion dollar investment aims to redraw the Chicago urban landscape in the same vein as the Hudson Yards in New York City and King's Cross in London. This is one of the ways Chicago seeks to renew itself through real estate.
History of the 78's development
The 78 is developed by Related Midwest and master-planned by Skidmore, Owings & Merrill. Development began with community engagement between 2016 and 2019. This involved public meetings, stakeholder meetings, and block club meetings with more than 2,800 attendees.
Zoning for The 78 was approved by the Chicago Plan Commission in November 2018 and by City Council in December 2018. A Tax Increment Financing District and Redevelopment Agreement (RDA) with Related Midwest was approved by the Community Development Commission in February 2019 and by City Council in April 2019.
The City of Chicago, especially the Roosevelt/Clark TIF District, also invested a lot for the 78. $551 million goes to building new public infrastructure such as :
- $364 million to fund a new CTA Red Line subway station at 15th and Clark
- $85 million to realign Metra tracks through the site
- $79 million toward improvements on Clark Street
- $13 million for the extension of 15th Street
- $10 million for the reconstruction of the riverfront seawall
Related Midwest also will donate an acre of land for the University of Illinois to construct the Discovery Partners Institute (DPI), a new research and innovation center focused on incubating startups.
What does the 78 offer?
The 78 has so much to offer! This envisions the next great neighborhood for Chicagoans. Settling along with several vibrant, diverse communities of Chicago such the South Loop, Chinatown, Pilsen, Little Italy, and Bronzeville.
Here are the different things you can expect to find in the 78 as a potential place to work and live in.
-
Housing
According to Related Midwest, the 78 will have 5,000 new apartments. 20 percent or a thousand of these will be affordable and cater to low-income families.
-
Education
The 78 also seeks to foster a better learning environment. It combines the natural landscape with technological innovation.
For one, residents and visitors can enjoy the seven-acre public park.
Then the 78 will also be a hub akin to Silicon Valley, through the Discovery Partners Institute, a high-tech research center and incubator created by the University of Chicago, the University of Illinois, and Northwestern University. This research and tech network aims to serve 10,000 students every five years.
-
Economic Potential
The 78 boasts a booming job market, with over 24,000 permanent jobs. It will generate net new spending of $40 billion over the next 30 years and raise the new annual city and state tax revenue of more than $220 million. This includes a potential Amazon base in the future.
-
Transportation
Related Midwest and the City of Chicago aims to connect the 78 to the other Chicago areas through new infrastructure. This strategy is for building a desirable hub for corporate and residential dwellers.
The first of these infrastructures to be built upon the 78 is Wells — Wentworth Connector. This is a north-south roadway that will connect Wells Street’s South Loop dead-end to Chinatown’s Wentworth Avenue. This will also provide access through boats on the river, new inland waterways, a new subway stop, and the existing commuter railway.
There will also be a second north-south road in the form of a new “LaSalle Street” running from the elevated level of Roosevelt Road down to the 15th Street extension.
To improve the railroad service, there will also be a new Chicago Transit Authority Red Line stop to serve the Roosevelt and Cermak-Chinatown stops and both O’Hare and Midway International Airports. Related Midwest will also move the Metra tracks away from Clark Street. The relocated Metra tracks would be enclosed for improved air quality and reduced noise.
It also builds a healthy commuting system with bike lanes and pedestrian-friendly streets. Clark Street will transform into a more walkable, urban street with active use.
-
Recreation Opportunities
The 78 is deeply rooted in the Chicago River. Its waterway is an attractive amenity.
Related Midwest will build a new Riverwalk where seven acres of public parkland merge with five acres of unimpeded space along the south branch of the Chicago River. Here residents and visitors will enjoy phenomenal riverfront views, year-round recreation opportunities, and beautiful amenities that celebrate culture and the Illinois charm.
The seven-acre crescent-shaped park will follow the path the river originally followed before it was straightened in the 1920s. Within the buildings of the 78 will be the“open space threads” so people can enjoy the outdoors.
At the edge of the Chicago River, the 78 will offer a 100-foot-wide, half-mile-long riverwalk. Inside this, Related Midwest allots lanes for dining, jogging and biking and waterside lingering.
Progress in 2021
According to the Chicago Department of Transportation (CDOT), the phase one and phase two construction of the Wells-Wentworth connection has been completed on April 13, 2021. The final phase of construction, including the opening of the road, is expected to be by the end of 2022.
Industry experts concur that the 78 will take 10 to 20 years to finish. Despite the COVID-19 crisis rocking the whole world, Related Midwest and the CDOT are hard at work with this development. Related is even recalibrating their designs to respond to shifting market conditions.
Conclusion
The 78 is on track to be Chicago’s next great community. This will fill in the gap in Chicago’s overall layout. There are a lot of exciting opportunities for this real estate development.
Interested in real estate? Book a FREE consultation with me here.
