Tall & Urban News

The developer of a big high-rise proposed just north of Millennium Park has scaled back its plans, slashing the number of hotel rooms in the project amid a drastic downturn in the lodging market.

Magellan Development Group originally proposed two hotels totaling 570 rooms in the building at 193 N. Columbus Drive. Now it plans one with just 269 rooms, according to an email that downtown Ald. Brendan Reilly, 42nd, sent to his constituents this afternoon. 

The Chicago-based developer also has slightly reduced the number of apartments in the tower, from 640 to 599, plus 30 serviced apartments, the email said.

Just south of Aqua Tower, the project would add to the collection of high-rises built in Lakeshore East, a development that Magellan launched more than 15 years ago. The building also has been in the works for years—the Chicago Plan Commission approved it in 2018—but the site, known as Parcel O, has sat fallow as Magellan has moved ahead with other developments in Lakeshore East, including the recently completed St. Regis Chicago, formerly known as Vista Tower.

With apartments and two hotels, Magellan’s original proposal for Parcel O would be tough to pull off even in a healthy market. Securing construction financing for such a large, complex project is especially difficult regardless of market conditions.

But it’s even harder amid a downtown hotel market that is suffering through its worst downturn in decades. That’s the main reason Magellan decided to include just one hotel in the building with half the number of rooms originally planned, Magellan CEO David Carlins confirmed in an email. He declined to identify the name of the hotel and said Magellan has not finalized the financing.

Designed by Chicago-based bKL Architecture, the building would also include three floors of co-working space and 8,500 square feet (789 square meters) of retail space, according to Reilly’s email. Originally 53 stories, the tower appears slightly shorter in revised renderings, but Reilly did not provide any specifics on height. The new design employs a sawtooth pattern on the building’s façade, a feature that didn’t exist under the old one.

Because the city has already approved a zoning change for the project, Magellan does not need to return to the Plan Commission or City Council for approval of the smaller building. The developer plans to break ground no earlier than October and aims to complete construction by April 2024, the email said.

For more on this story, go to Crain's.