If you haven’t heard of the new mega development possibly coming to the South Loop called Gateway, it’s only a matter of time before it hits your radar. Planned for a location that would overlook Soldier Field and Museum Campus, the $3 billion Gateway project could include as much as 3,000 homes and 500 hotel rooms that would occupy a site just west of Lake Shore Drive.
Although current developers are still planning a strategy and weighing options that may include bringing in additional partners, the impact such a project would have on the South Loop real estate market is undeniable, especially given what’s already happening in the neighborhood with the new DePaul arena and various other large scale projects currently in the works.
One major challenge facing the new Gateway project is that anything developed would have to be built above the already-existing Metra rail tracks, as developers actually own the “air rights” to build above the tracks, not the land itself.
In all, about nine buildings are planned for Gateway and unlike recent development trends in downtown Chicago, the majority of Gateway’s units would actually be condos rather than rentals—a sign that we might finally be seeing the start of a strong rebound for condos and other for sale units as it pertains to new development.
Eventual condos at Gateway would no doubt feature incredible lake and city views, while the project’s location would also give residents a close proximity to museums, the Loop, and tons of restaurants and entertainment near McCormick Place.
According to a report from Crain’s, developers for the project estimate the value of the air rights at this location to be around $75 million.
Although Gateway is still in its very early planning stages, definitely stay tuned for more information about this one.