A $121 million project that includes mixed-income housing, commercial offices, and retail space has won a Chicago Department of Planning and Development (DPD) request for proposals to redevelop an historic City-owned property on Pershing Road.
Planned by IBT Group LLC for an approximately 6.5-acre site at 1717-69 W. Pershing Road, the project will repurpose a vacant 571,000-square-foot warehouse known as the Quartermaster Depot, built in 1918 for the U.S. Army. The six-story structure, featuring 90,000-square-foot floors and located within McKinley Park’s Central Manufacturing District complex, is listed on the National Register of Historic Places.
Rehabilitation workers will remove a center section of the building to create two partially detached structures with a shared interior courtyard. One structure will hold 120 mixed-income apartments ranging from studios to three-bedroom units; the other will become a 200,445-square-foot office hub and technology incubator. Approximately 120 parking spaces and rooftop amenities will serve tenants and visitors of both structures. Workers will preserve and restore the facade and other historic elements.
The site’s eastern portion currently contains a one-story City maintenance facility. The project will create a 50,000-square-foot grocery store there, with about 130 parking spaces available for store patrons and workers.
“The Pershing Road project is an example of how innovative thinking and design can breathe new life into our historic spaces while expanding affordable housing opportunities for Chicagoans,” Mayor Brandon Johnson said. “I look forward to the potential this project holds to revitalize the McKinley Park community, including plans for mixed-income housing, a grocery store, and office space to benefit neighbors and create jobs.”
Project leaders issued a request for proposals in July 2022, seeking plans incorporating mixed uses to address local needs, foster nearby investment, and improve employment options for area residents.
IBT Group was among three shortlisted development teams that responded to the request. A City selection committee evaluated each proposal based on factors including its responsiveness to the City’s goals, neighborhood needs, and the development team’s experience and diversity. IBT Group ranked highest on the committee’s independent scoring system and placed first on a community survey issued in three languages that generated more than 200 responses.
The development team also includes Epstein, APMonarch, dbHMS, Site, Englewood Construction, and ARCO/Murray.
“This is an ambitious plan that will completely revitalize one of the country’s most substantial vacant buildings while also creating a community anchor that fosters additional neighborhood investment,” a DPD spokesperson said.
The development site is valued at about $6.7 million, minus environmental remediation costs yet to be determined. The developer’s anticipated request for City support could include up to $25 million in tax increment financing assistance, pending formal review and approval processes that include examination by the City Council.
“I’m excited to see this project move forward.” said Ald. Julia Ramirez (12th). “An adaptive reuse of the former warehouse building will not only help maintain the historic integrity of the Central Manufacturing District but also revitalize the Pershing corridor, which has been vacant or underutilized for many years. I look forward to working with IBT Group and local stakeholders to ensure this project includes community benefits.”
For more information, visit www.chicago.gov/city/en/sites/dpd-rfqs-and-rfps/home/1769-w-pershing-road-rfp.html or call the DPD at (312) 744-9267.