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Chicago's Michigan Avenue lands city's first Nordstrom

By John Frantz

CHICAGO -- Overcoming various historical landmark hurdles, Nordstrom is finally coming to this city's ritzy North Michigan Avenue shopping district, as the anchor of a new shopping complex.

When the initial plan for the project, called North Bridge, was unveiled in the early 1990s, architectural preservationists were outraged to discover it called for the destruction of the McGraw-Hill building, which many considered a valuable part of Chicago's architectural heritage. But after a delay of several years, a compromise has been hammered out that will preserve the building's facade.

Developer John Buck Co., Chicago, in partnership with The Morgan Stanley Real Estate Funds, New York, has unveiled plans for the $450 million North Bridge project, which will include a four-level, 260,000-square-foot Nordstrom.

North Bridge, which will encompass several city blocks as well as North Michigan Avenue frontage, will also include another 300,000 square feet of retail, 890 hotel guest rooms and other amenities.

Locating Nordstrom on the far south end of North Michigan Avenue -- long considered the ugly stepsister of the more hip north end -- will be a boon for the local area. Previously, most of the shopping district's action was focused around the northerly end's two vertical malls, Water Tower Place and 900 North Michigan.

Nordstrom is expected to heighten interest in the shopping strip's southern point, an area consisting of nonretail attractions such as the Wrigley Building, Chicago Tribune Building and the North Michigan Avenue bridge that spans the Chicago River.

"Most of the high-end retailers have gravitated to the northern end where there is Water Tower Place and boutiques along [nearby] Oak Street," said Bruce Kaplan, president of Northern Realty Group, Chicago, which surveys the street's activity through its annual publication, The North Michigan Avenue Retail Vacancy Survey. "But now we're seeing more interest south with the relatively recent flagship store of Crate & Barrel, the 600 N. Michigan building, and the All-Star Cafe."

Mr. Kaplan expects Nordstrom to open the floodgates for more retailers, enticing them to the south end of a shopping strip that is considered one of America's best.

"We expect the eventual opening of Nordstrom will upset shopping for at least six months because of the 'new kid on the block syndrome,'" said Jacqueline Hayes, chairperson of the Planning, Preservation & Urban Design Committee of the Greater North Michigan Avenue Association, Chicago. "But after that we expect the balance to be restored to normal, and North Michigan will be a better shopping strip than ever."

At presstime, the developer was only waiting for a final City Council approval for the project, having already gained the thumbs-up from the Department of Planning and Development. Once approved, the project will begin this year, and Nordstrom is expected to move in as early as 1999.

"I'm optimistic. There has been so much negotiation--now this should be consummated," said Alderman Burton Natarus. "I don't see too much left to argue about."

When originally proposed in the early 1990s, plans were less ambitious, incorporating only Nordstrom and a few other developments. But they were a lot more contentious, because Nordstrom wanted to demolish the McGraw-Hill building to make way for its grandiose frontage on North Michigan.

Preservationists quickly cried foul and brought Buck's grand plan to a screeching halt. The 20-story, Class B office building had long been considered functionally obsolete, but preservationists saw its art deco facade as an invaluable part of Chicago's architectural history. Preservationists won landmark status for the building in 1997, forcing Buck's architect and design team to incorporate it into the project's final plans. As a result, a compromise has been struck which preserves the facade while demolishing the building behind it, at a price of $9 million.

Regardless of the new building's planned interiors, the retained facade doesn't offer a ritzy enough entrance for Nordstrom's taste. To make a grander statement, Buck plans a four-story entrance, crowned by an atrium, directly north of the McGraw-Hill site. The entrance, to be built over Grand Avenue, will give Nordstrom an elegant street frontage.

While Nordstrom has three suburban Chicago stores in Skokie, Oak Brook and Schaumburg, Ill., the North Bridge project will be the chain's first foray into the Windy City's downtown market.

The project promises a great deal in addition to Nordstrom. The McGraw-Hill Building's redesign will accommodate a five-level galleria, with space for 30 specialty retailers.

Nordstrom's arrival will represent the triumphant conclusion of a hard-fought battle. According to Northern Realty's Mr. Kaplan, "This is the single most exciting event on North Michigan Avenue since Water Tower Place was built in the late 1970s."