Lincoln Park Mall Owner Scraps Apartments, Moves Ahead with Retail

The owner of Clybourn Place shopping center will demolish the Lincoln Park property and rebuild it as retail-only development, abandoning controversial plans for a high-rise apartment building that drew fierce neighborhood opposition.

The decision clears the way for demolition to begin within months on the aging shopping center at 1800 N. Clybourn Avenue, which houses a Whole Foods, LA Fitness and several smaller retailers. The property owner will proceed under existing zoning that allows commercial development without seeking city approval for residential units.

“We’re moving forward with a retail-focused redevelopment that aligns with the current zoning and community expectations,” a spokesperson for the development group said Tuesday.

The retail-only approach represents a significant scaling back from the original proposal, which called for a mixed-use development including hundreds of apartment units above ground-floor retail space. That plan required zoning changes that faced strong resistance from Lincoln Park residents who argued the project would worsen traffic congestion and strain parking in the densely packed neighborhood.

Clybourn Place opened in the 1980s as one of several shopping centers that transformed the former industrial corridor along the Chicago River. The property sits at the intersection of three affluent North Side neighborhoods - Lincoln Park, Old Town and River North - making it prime real estate for redevelopment.

The current shopping center occupies 8.2 acres and includes about 180,000 square feet of retail space. Whole Foods anchors the center as its largest tenant, occupying roughly 60,000 square feet. The grocery chain has not announced plans for its location during the redevelopment process.

Demolition permits filed with the city indicate work could begin as early as late spring, with construction on the new retail development starting in 2027. The project timeline extends roughly two years, meaning the new shopping center could open by 2029.

The abandoned apartment component would have added an estimated 400 residential units to Lincoln Park, where housing costs rank among the highest in Chicago. One-bedroom apartments in the neighborhood typically rent for $2,500 to $3,500 monthly, while condominiums sell for an average of $650 per square foot.

Lincoln Park residents organized opposition to the residential component through the Lincoln Park Conservation Association, which argued the neighborhood already faces density pressures from multiple high-rise developments approved in recent years. The group cited traffic studies showing Clybourn Avenue operates near capacity during peak hours.

“This outcome reflects the community’s consistent position that additional residential density would overwhelm our infrastructure,” said Patricia Morrison, president of the conservation association.

The zoning battle reflected broader tensions over development in established Chicago neighborhoods, where longtime residents often clash with developers seeking to add housing density. Similar disputes have played out across Lincoln Park, Lakeview and other North Side communities where property values make redevelopment financially attractive.

The retail-only approach avoids the lengthy city approval process required for zoning changes. Mixed-use developments typically require review by the Chicago Plan Commission and City Council approval, processes that can stretch 12 to 18 months and face community opposition.

Commercial real estate experts said retail-only development carries less financial risk but also lower profit potential compared to mixed-use projects. Apartment buildings generate steady rental income that shopping centers cannot match, particularly as retail faces ongoing challenges from e-commerce competition.

“Retail development makes sense if you can secure strong anchor tenants, but the margins are tighter than residential,” said David Chen, a commercial real estate broker who specializes in North Side properties.

The Clybourn corridor has seen significant retail investment in recent years despite broader challenges facing brick-and-mortar stores. Target opened a large-format store at nearby Clybourn Galleria in 2019, while several restaurant chains have expanded their presence along the commercial strip.

Lincoln Park’s affluent demographics make it attractive for retailers seeking locations with strong consumer spending power. The neighborhood’s median household income exceeds $120,000, well above the citywide average of $65,000.

The development group has not released architectural renderings or detailed plans for the new shopping center. Industry sources expect the project will include similar retail square footage as the current center but with updated design and layout to attract premium tenants.

Retail developments typically require less parking than mixed-use projects, potentially easing neighborhood concerns about traffic congestion. The current center includes surface parking lots that will be reconfigured as part of the redevelopment.

The timeline puts the Clybourn Place project among several major retail developments planned for Chicago’s North Side over the next three years. The projects reflect continued developer confidence in affluent neighborhoods despite broader economic uncertainties affecting Politics & Government decisions on zoning and development incentives.

City planning officials had not responded to requests for comment on the revised development plans by Tuesday evening. The project does not require additional city approvals beyond standard building permits for demolition and construction.