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Related Midwest pushes forward on four Chicago developments despite tight market
The firm is starting leasing at its 400 Lake Shore Drive 72-story multifamily project, targeting March 2027 completion and 635 new apartments.
Bisnow reports that Related Midwest, the Chicago-based arm of Related Cos. led by Stephen Ross, has advanced four major development projects in Chicago across multiple asset classes within the past year, even as conditions for large-scale new construction in the city have remained tight.
The outlet notes that many institutional investors have stayed on the sidelines due to concerns tied to Chicago’s volatile property tax environment and political climate, alongside broader pressures from construction costs and financing that have deterred other developers.
Related Midwest is behind megadevelopments including a quantum campus on the South Side and the Chicago Fire’s new stadium at The 78, and it has nearly completed both a new lakefront apartment tower and what Bisnow describes as the first major new office building in the city in several years.
DePaul University’s Real Estate Center director Reagan Pratt said Chicago has shifted from a core gateway for international investors and U.S. pension funds to what he called a market “quasi-redlined by institutional capital,” adding that Related likely faces a lower risk premium than other firms. Separately, Bisnow says Related announced in early August it began leasing at 400 Lake Shore Drive, a 72-story multifamily property on the site of the scuttled Spire project, with expected completion in March 2027, which would add 635 apartments to a multifamily pipeline at historical lows.