The developers behind Chicago’s first geothermal and all-electric apartment tower broke ground Tuesday, at a time where the city sorely needs more apartment construction.
The groundbreaking comes more than three years after Tree Street Group, alongside Magellan Development Group, began planning 410 N. Elizabeth, a two-tower development that will total more than 724 apartments when complete. The project is backed by a $102 million construction loan that the developers secured earlier this month.
Tuesday’s groundbreaking marked the beginning of the first tower’s construction. The 33-story apartment building will add 383 units to Fulton Market, with 77 of them affordable. Units include 38 studios, 87 one-bedroom, 256 two-bedroom and two three-bedroom apartments.
Also included at the site is 28,000 square feet of public green space — a rarity in the industrial Fulton Market area — that will include outdoor retail, event space and a dog park.
“For generations, [this site] served the rail yard, the warehouses and the industries that really built this city,” said Ed Kruschka, principal of Tree Street Group. “And today, we write a new chapter — not with another warehouse, but with a project that really embodies the future of Chicago.”
Ted Weldon, principal of Tree Street Group, said the developer’s vision was to construct a more efficient building — something city leaders praised during Tuesday’s groundbreaking.
The building’s geothermal energy system will support more than 80% of the building’s heating, cooling and hot water supply, according to Weldon. The geothermal system, along with other key design features, will slash energy usage by roughly 60% and energy costs by more than 25%.
The building is projected to reduce emissions by 30%, the equivalent of 390 tons of carbon annually, Weldon said.
“We should ask ourselves how a building can use less energy and place less strain on the grid. Consistently, that should be the standard,” said Ald. Walter R. Burnett (27th). “We should ask how design can lower long-term operating costs, and we should ask how innovation can help us deliver better homes in less time. When a building uses energy effectively, residents can face lower utility costs, owners gain more predictable operating [expenses] and rents come down. That is what Chicago needs — point-blank, period. We need more housing, and we need it to be affordable. And we need to build those homes effectively, efficiently and quickly.”
The construction of 410 N. Elizabeth comes at a time when new apartment stock is sorely needed in Chicago. The average monthly rent for an apartment in Chicago is $2,521, according to July 2 data from RentCafe. That’s up 4.6% compared to the same time last year, when the average rent was $2,410.
Rents are rising, in part, because of a lack of new construction as demand for apartments increases. RentCafe data also shows 95.3% of apartments across the city are occupied, leaving a small number of units available for those looking to rent. And new construction only accounts for .2% of all apartments across Chicago, meaning there’s no new apartments to satiate the growing rental pool.
“We’re proud of the work we’ve done here, and we’re excited to add a new building to the Chicago skyline at a time when it desperately needs more,” J.R. Berger, president of Magellan Development, said.