Developers that converted a former Morton Salt warehouse along the Chicago River into a concert venue now have their eyes on an adjacent site for a potential major expansion to hold larger events.
Chicago-based Blue Star Properties and other investors have a contract to buy more than 5 acres at 1401 N. Magnolia Ave., Blue Star President Craig Golden said. That site is immediately north of the Salt Shed, and it already is used for concert parking.
The Salt Shed's early success in Chicago is part of a national trend in which developers, concert venue operators and cities are trying to fill the gap between intimate spaces and massive arenas. As part of the initial redevelopment, Goose Island Beer Co. in late 2022 agreed to move its original brewpub from 1800 N. Clybourn Ave. to a former Morton Salt vehicle maintenance building within the Salt Shed complex.
The Magnolia site and other nearby parcels have been listed for sale in recent years by members of the Labkon family, which operated the General Iron scrap-metal plant nearby before it shut down in 2020.
Buying more land along the north branch of the river would allow Blue Star, Salt Shed development partner Chicago developer R2 and other investors to expand the facility to allow for larger concerts, festivals and other events, Golden said.
Golden emphasized that the land deal is preliminary and still could fall apart.
He said if the developers are able to complete the land deal and fund the approximately $60 million to $70 million project, the larger outdoor area would be able to hold events for crowds as large as 15,000. As of now, outdoor concerts are capped at 5,500 and indoor capacity is around 3,600.
Golden said the developers are still evaluating the feasibility of the addition, including how seawall construction and other infrastructure on the long-vacant site would be funded.
Golden described himself as “guardedly enthusiastic” about the project while evaluating whether the economics will work.
“It’s a big lift, but it would be a great thing for the city,” Golden said. “We’d love to see it come to fruition.”
If the developers proceed with the expansion plan, the new site likely would be configured with a mix of grandstand seating, grass berms and a large, open area for standing-room spectators, Golden said. Some space would be preserved for parking.
Open space would help accommodate non-music events such as farmers markets, fairs and street festivals, Golden said.
“We envision it more like a fairground than a concert venue,” Golden said. “We’re trying to keep it as a space where we can be very flexible with the programming.”
The land is in a longtime industrial area that has been in transition in recent years, including now-stalled plans by Golden’s former firm, Sterling Bay, to build a $6 billion mixed-use neighborhood called Lincoln Yards nearby. The site is along wealthy, densely populated neighborhoods such as Lincoln Park and Bucktown.
Plans by the Blue Star-led venture to buy the land and expand were earlier reported by Crain’s Chicago Business.
Golden was co-founder of Sterling Bay before leaving that firm to create Blue Star Properties. An affiliated company led by Bruce Finkelman and Golden, 16” on Center, owns bars, restaurants and concert halls including the Empty Bottle, Longman & Eagle and Thalia Hall.
The firms are known for finding new uses for historic properties.
Blue Star earlier this year paid $27.75 million for the 26-story former home of the Chicago Daily News at 2 N. Riverside Plaza in the Loop business district. That building, which was owned for half a century by late Chicago billionaire Sam Zell, is set for a $50 million renovation, Golden said in July after the building acquisition was completed.
For the record
Colliers broker Mike Senner is representing the sellers.