Originally built as a pillow factory in 1940, Millennium Lofts has been reinvented as a successful South Loop loft apartment conversion, with average apartment sizes that are a whopping 1,302 square feet. Within this South Loop neighborhood, average residents’ income hovers near $111k annually. While rental growth has been aggressive, occupancy remains high at 94% for Millennium Lofts alone.
The neighborhood is in such a development phase that year-over-year rent growth of 9.7% has been achieved and continues to climb even higher. The average year built of multifamily assets in the South Loop is 1997. People are choosing the South Loop. Millennium Lofts has numerous features that add to the appeal of a South Loop development. The asset qualifies for development bonuses available through Chicago’s TOD ordinance. In fact, the closest ‘L’ stop is only a few minutes’ walk from the front door. Another enviable component of this property is its proximity to the brand-new Mariano’s a few blocks away: It’s a 5-minute walk.
The future expansion and development of Millennium Lofts is an advent of opportunity. In addition to the potential reconfiguring of the loft apartments into smaller units, there is also a 16,700-square-foot parking lot that investors can develop. With existing zoning there exists the opportunity to construct an additional 74,000-square-foot building. An integrated plan of renovated existing apartments and an adjacent new development will garner a positive response, as similar projects have seen in other Chicago submarkets.
Millennium Lofts offers developers several viable paths of repositioning the asset to their desired investment strategy. TOD, value-add and future development with an existing 5,135 square feet of commercial space are all factors that make this the opportunity of the Millennium.