Chieftain in €100m Chicago development

Property group Chieftain is set to embark on a €100 million-plus development in the US city of Chicago.

The Limerick-based group, part of Chieftain Construction, is planning to develop 333 condominiums close to the South Loop in downtown Chicago.

Seán O'Sullivan of Chieftain said that the site acquisition and building costs for the development will total $125 million (€105 million).

"We have purchased the site and we have all the permits, and we are going to start construction on the site in September," he said.

The Irish group has hired local builder Kenny Construction as the main contractor.

Chieftain intends selling the condominiums in both Ireland and the US. The company is expecting to sell to investors and Irish people with a connection to Chicago or a reason to travel there regularly with the properties. They are likely to sell €170,000-€520,000.

Mr O'Sullivan said yesterday that the south side of Chicago, where the apartments will be located, offers the most scope for development, as the north side of the city is at capacity.

Property in Chicago has delivered average growth of 9 per cent over the last five years and the market is regarded as low risk. "Chicago is not experiencing a bubble, which some other centres are," Mr O'Sullivan said.

Chieftain's development will be named Lexington Park, as it is on the site of the old Lexington Hotel, where mob boss Al Capone had his headquarters.