August 1, 2006

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters

In the latest sign of Millennium Park's drawing power for real estate, investors have proposed a 40-story apartment tower for the northeast corner of Michigan and Randolph.

The building would occupy one of the most prominent spots in Chicago, overlooking the park and joining a row of distinctive towers along Randolph. Planned to have 80 units, or only two per floor, the building would arise on a skinny 6,000-square-foot parcel that now includes the La Strada restaurant.

Owners of the parcel, BJB Partners, have applied for a zoning change needed because of the building's height. It would be about as tall as the neighboring building, the former Doral Plaza at 151 N. Michigan, which is now called Millennium Park Plaza.

Developers have scrambled to capitalize on the park's success in drawing crowds. Many believe it has made the East Loop a showcase that will attract tourists, new residents and office tenants.

A BJB partner, Sean Barry, said his firm is undeterred by a slowdown in the housing market. The location and its views allow for a rental building that can charge premium rents, he said.

"The rental market is the best we've seen in five, six years," Barry said. "The demand at our other properties has just been unbelievable."

Park Ridge-based BJB owns many properties near the lakefront from downtown to Evanston, primarily apartments. Millennium Park Plaza is part of its holdings. It owns buildings with rooftop concessions on Waveland Avenue across from Wrigley Field.

Barry said his firm has hired the architectural firm Solomon Cordwell Buenz to design the building -- with a modern glass-and-steel facade that will justify its place in the skyline.

The zoning request starts a review process by city agencies leading to public hearings and a vote by the City Council. The process could take months. Barry, who said financing has not been secured, is hoping to break ground by spring of 2008.

La Strada, a popular Italian restaurant, would close but could reopen in the new building, Barry said. He said the restaurant has about a year to go on its lease.

Michael Mormando, an owner of La Strada, said he wasn't aware of plans for a new building. "I've been here for 26 years, and I don't plan on going anywhere," he said.

Bob O'Neill, president of the Grant Park Advisory Council, said the quality of the architecture will make or break the project. "Millions of people will be looking up at that building. It should be close to a work of art."

It would join a vista from the park that includes the One and Two Prudential Plaza buildings, Aon Center and the Blue Cross and Blue Shield Building that is due for a 24-story addition. A block to the north are two development sites: one due to get a 65-story Mandarin Oriental hotel and another that's a possible expansion site for the Fairmont Hotel.