City Selects $121 Million Mixed-Use Project for Pershing Road Warehouse Site

September 7, 2023

Department of Planning and Development    312.744.9267

A $121 million project that includes mixed-income housing, commercial offices and retail space was announced today as the winner of a Chicago Department of Planning and Development (DPD) Request for Proposals (RFP) to redevelop a historic City-owned property in McKinley Park.

Planned by IBT Group LLC for an approximately 6.5-acre site at 1717-69 W. Pershing Road, the project will repurpose a vacant 571,000-square-foot warehouse known as the Quartermaster Depot, which was built in 1918 for the U.S. Army. The six-story structure, featuring 90,000-square-foot floor plates and located within McKinley Park’s Central Manufacturing District complex, is listed on the National Register of Historic Places.

Rehabilitation work will remove a center section of the building to create two partially detached structures with a shared interior courtyard. One structure will include 120 mixed-income apartments ranging from studios to three-bedroom units. The other will become a 200,445-square-foot innovative office hub and technology incubator. Approximately 120 parking spaces and rooftop amenities will serve tenants and visitors of both structures. The facade and other historic elements of the complex will be preserved and restored.

The eastern portion of the site, which currently contains a one-story City maintenance facility, will be redeveloped as a 50,000-square-foot grocery store. Approximately 130 parking spaces will be available for store patrons and workers.

"The Pershing Road project is an example of how innovative thinking and design can breathe new life into our historic spaces, while expanding affordable housing opportunities for Chicagoans," Mayor Brandon Johnson said. "I look forward to the potential this project holds to revitalize the McKinley Park community, including plans for mixed-income housing, a grocery store, and office space to benefit neighbors and create jobs." 

The RFP, issued in July 2022, solicited proposals that incorporate a mix of uses that address local needs, foster nearby investment, and improve employment options for area residents.

IBT Group was among three shortlisted development teams that responded to the RFP. Each proposal was evaluated by a City selection committee based on its responsiveness to RFP goals, neighborhood needs, and the development team's experience and diversity, among other factors. IBT Group was ranked the highest on the committee’s independent scoring system and placed first on a community survey issued in three languages that generated more than 200 responses.

The development team also includes Epstein, APMonarch, dbHMS, Site, Englewood Construction, and ARCO/Murray.

“This is an ambitious plan that will completely revitalize one of the country’s most substantial vacant buildings while also creating a community anchor that fosters additional neighborhood investment,” DPD Commissioner Maurice Cox said.

The development site is valued at approximately $6.7 million, minus environmental remediation costs that are yet to be determined. The developer’s anticipated request for City support could include up to $25 million in Tax Increment Financing assistance, pending formal review and approval processes that include City Council.

"I'm excited to see this project move forward.” said Ald. Julia Ramirez (12th). “An adaptive reuse of the former warehouse building will not only help maintain the historic integrity of the Central Manufacturing District but also revitalize the Pershing corridor, which has been vacant or underutilized for many years. I look forward to working with IBT Group and local stakeholders to ensure this project includes community benefits for McKinley Park and Brighton Park residents."

A community meeting for area residents to learn more about the project and development team is anticipated this fall.

For more information, visit the project web site.

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