LINCOLN PARK — It's been a year since mega-complex New City opened on the southern edge of Lincoln Park, and some retailers and restaurants are still waiting for a shopping surge.
The massive complex at 1457 N. Halsted St. is starting to see more foot traffic, but it's off to a slow start, according to retail managers and shoppers.
Some speculate that's because the chain retailers aren't as attractive to shoppers, while others argue that the retailers are charging prices that are too high for the area.
"It's not as busy as we'd like it to be, but it's a work in progress," said Robert Lang, general manager of high-end sports bar Yard House, which seats 370 people total and serves entrees that cost up to $27.
"There's not a lot of foot traffic in the area. We saw a big effect when the Cubs were in the playoffs last year. That's what we're waiting on," he added.
Lang pointed to the neighborhood demographics as a possible reason.
"East there's businesses. North there's businesses. But south and west there's nothing. It's just residences, and it's also low-income residences. Since this is a higher price point, we don't necessarily attend to that demographic," he said.
Julie MacGuidwin, manager of women's clothing store Evereve, said while sales at the New City location don't yet compare to the store's Lakeview location at 3440 N. Southport Ave., things have improved since opening, although last month wasn't great.
"Our grand opening was great, but over the winter months, it dwindled due to the weather," MacGuidwin said.
"It's picked up a little bit. A lot more people know about the center now. It ebbs and flows. The end of August was really busy for us. September was softer than we expected."
Both retail managers and shoppers agree that weekends are much busier than weekdays at New City, but exactly how much is up for debate.
Kathleen O'Hara, a Lincoln Park resident who has been coming to New City at least twice a week since it opened, said it picks up on the weekends, but "not in the way other areas pick up."
"I feel like in Old Town ... there's always something going on there [in the retail district]. Any time of day, I would pass by the Starbucks, and I was like, 'Does anybody work in the city of Chicago?' You can see and feel that it was really busy," she said.
New City, on the other hand, which she said has a more "suburban feel," appears empty more often than not. She and her cousin said they never have to wait for service at any of the restaurants or retailers.
"I think it's because there's a lot of chains [in New City] and I feel like ... Chicago's all about small, 'Cheers'-style, 'Everybody-knows-your-name'" businesses, she said.
Earls Kitchen & Bar is just one of the restaurants within the complex. [All photos DNAinfo/Mina Bloom]
John Bucksbaum, the founder of the company that manages the retailers, Bucksbaum Retail Properties LLC, defended the slow start.
"When properties open, typically business builds as they get better known and people more accustomed to them," Bucksbaum said.
"If it were to stop right here and never see an increase, would we be satisfied? Probably not. But we're seeing growth. It's progressing in the way that we want," he added.
Seven years in the making
When it was being built in 2014, the $275 million mega-complex was Chicago's biggest construction project, spanning 8.5 acres. It was also the largest project developer Structured Development had ever undertaken.
The land used to be the home of New City YMCA, which brought together residents from the Cabrini-Green public housing project and affluent Lincoln Park. The YMCA was torn down in 2007 after years of dwindling membership due to the teardown of Cabrini-Green, which was plagued by crime.
That same year, Structured Development bought the land with the goal of building a massive new mixed-development in its place — one of the most ambitious projects to date in the Clybourn Corridor.
The developer got a $182 million construction loan and broke ground in 2013.
Structured Development and its partners on the project, Power Construction and OKW Architects, won the "Development of the Year" award at the 28th annual Chicago Commercial Real Estate Awards in April.
"The project was in its infancy as the recession took hold and the team, led by Structured Development, stuck with its vision through one of the worst financial crises to hit the commercial real estate industry," the news release read.
As of mid-September, Jeff Berta, senior director of real estate development at Structured Development, said about 85 percent of the retail storefronts within the complex had been filled.
Berta said his team has been working hard to bring in retailers that are new to Chicago, like California-based ArcLight Cinema and Canada-based Earls Kitchen & Bar. Right now, he and his team are eyeing clothing stores to fill the remaining storefronts.
"We're really focused on apparel-type tenants that would supplement and play off Saks on Fifth and Dick's Sporting Goods and the maternity store" Evereve, he said.
Like the retail managers and shoppers, Berta said retail at New City is "more weekend-focused."
"We've got a good mix of tenants," he said. "I think we've definitely added a number of retailers that weren't in the marketplace before."
'New City is its own lifestyle'
In addition to 380,000 square feet of retail space, the development includes a 19-story residential tower with 199 apartments, a 1,100-car parking garage and nearly two acres of open space.
The average apartment rent is about $3,000, according to Diana Pittro, executive vice president of RMK Management Corp., the company that manages the residential tower.
As of mid-September, 95 percent of the tower was occupied.
The tower offers studios, convertible units, one-bedrooms, two-bedrooms and three-bedrooms — outfitted with modern amenities like quartz countertops, floor-to-ceiling windows and impressive views of the city skyline.
As of mid-September, the tower was 95 percent occupied, Pittro said.
"It's gone better than expected," Pittro said. "The owners are pretty happy."
Most of the renters are between 25 and 38 years old who make an average income of more than $100,000, she said.
"The demographic at New City is falling right into place with what we thought it would be," Pittro said. "The area is very vibrant. It's still in the process of changing."
As for whether those tenants shop and dine within the complex regularly like it was designed, it depends on who you ask.
Pittro said New City is "its own lifestyle."
"We have all of the retail, we have the restaurants, we have the movie theater. You're not renting an apartment in New City. You're renting a lifestyle. That lifestyle has value," she said.
Some retail managers said while they get some run-off from the movie theater and grocery store, most customers aren't merely wandering in — they're on a mission.
"Most people come here [because it's] their destination," MacGuidwin said. "Some people pop their heads in and explore, but most people come to see us. They're in here because they parked to come see our store."
The view from one of New City's top-floor apartments.
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