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2,200 Apartments, Hotel Proposed For River West Salvation Army Site Near Bally’s Casino

Fulton Market-based Shapack Partners has hatched a plan to redevelop the site after buying the Salvation Army campus for $25 million.

The now-shuttered Salvation Army thrift store building, 509 N. Union Ave. in River West
Quinn Myers/Block Club Chicago
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RIVER WEST — Thousands of apartment units and a hotel could replace the former Salvation Army property and a neighboring site steps from the city’s first casino in River West.

Chicago-based Shapack Partners plans to transform two areas, including the closed store at 509 N. Union Ave., into an apartment-hotel hybrid campus, according to two zoning applications submitted to the city.

The property along Grand Avenue between Desplaines Street and Union Avenue would be divided between a 141-room hotel and a 1,110-unit apartment building. The hotel would be along Union Avenue, while the apartments would be primarily along Desplaines Street, according to the zoning documents.

Shapack plans for a three-building apartment complex southwest of the Salvation Army property along the intersection of Milwaukee and Union avenues and Hubbard Street, according to the plans. The 1,159-apartment campus would also feature ground-floor retail and office space.

There are 454 affordable units planned overall, with 222 for the hotel-apartment hybrid and 232 for the three-building apartment complex.

Representatives from Shapack Partners were unavailable for comment.

If approved by City Council, the large development would be walking distance to the $1.7 billion Bally’s casino slated to be built at the Chicago Tribune Freedom Center, which is waiting final approval from the Illinois Gaming Board.

The Salvation Army closed in March, citing significant disruptions caused by the COVID-19 pandemic. The site was home to a thrift store and an adult rehabilitation center, which also closed in March. Shapack Partners bought the campus in May for $25 million, according to Crain’s.

Known for its high-profile projects in the Fulton Market District, Shapack Partners is responsible for developing Hoxton Hotel, Soho House and 167 Green Street, which is home to a famous basketball court looking out to the skyline.

Most recently, the company received approval for a 36-story mixed-use building at 170 N. Green St. The property is a three-pronged development and will include apartments, hotel rooms and commercial space.

Credit: City of Chicago
Sub areas A, B and C would be apartment buildings with a combined 1,159 units.
Credit: City of Chicago
Sub area A would be a 141-room hotel and sub area B would be a 1,110-unit apartment building rising to 600 feet.

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