Developer Dreams of America’s Tallest Tower in Chicago
By Penny on May 21, 2014
Irish developer Garrett Kelleher’s plans have one more chance to prove they haven’t been blown away just yet. Since 2007, when the company broke ground on Chicago Spire, the tallest project in the windy city, the building has not made any progress, halted by the impacts of financial crisis.
Set to surpass the legendary heights of New York’s 1 World Trade Center by a projected 224 feet, the Chicago Spire would be an incredible 2,000 foot skyscraper on the lakeshore. The façade is a powerful spiraling design by Santiago Calatrava, the exuberant luxury extends to the interior of the building with apartments selling for $750,000 and $40,000,000.
Forced into Chapter 11 bankruptcy protection only nine months after having started construction, this meant that the company still believed they would be able to finance the project, thus maintaining ownership of all assets, they just needed some time to reorganize their business and try to become profitable again.
Last month, Atlas Apartment Holdings LLC, a Chicago-based apartment owner and developer struck a deal agreeing to payoff the debt holder Related Cos. if Kelleher was unable to pay. Stephen Ross, founder of Atlas Apartment Holdings LLC would then be the owner of the land. In doing so, Atlas and Kelleher will have two options to choose from before the October 31 deadline; they can either give Related Cos. $109 million immediately, or they will have to pay $22 million for a five month extension until they can provide the outstanding $92 million by the end of March. These figures are independent from the costs of construction, so regardless of which option they go with, they will still need to come up with the funds to build the 150-storey skyscraper.
“It would be a big deal for Chicago both in terms of its height and its title, and also its prominence on that site right on the lake and the difference of its architecture,” said Antony Wood, executive director of the Council on Tall Buildings and Urban Habitat. This skyscraper would restore Chicago’s historical title as the city with the tallest skyscraper in America. Originally, the 10-storey Home Insurance Building, which was built back in 1884, was titled the world’s first skyscraper according to the Guinness Book of World Records, followed by the construction of the Sears Tower (presently known as the Willis Tower) which was built in 1973 and was the tallest U.S. tower until the 1 World Trade Center.
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“The skyscraper was born in this city and people still associate a huge amount of pride with not only the buildings that are here, but Chicago being at the forefront of pushing what the skyscraper is.” Wood said.
What went wrong with Chicago Spire?
For starters, units in the Chicago Spire were priced just over the median price for homes in Chicago. Units ranging from 534 square feet to 10,293 square feet started from $750,000. The amenities epitomized opulence, with plans for a gorgeous swimming pool, half basketball court, cigar room and 40-seat cinema. Though Kelleher alleges they had about 30 percent of the 1,194 units sold, their biggest buyer Ty Warner (the founder of Beanie Babies and other Oak Brook toys) was in hot water for tax evasion. As the future purchaser of the $40 million penthouse, this posed a colossal problem and may have had some influence on the project’s progress.
Will Chicago once again be home to America’s tallest tower? Will Chicago Spire ever be built? Time will tell!
Feature image via Bloomberg.com
