Construction is officially underway on the G.J. Lofts construction project.
Developer Justin Fern was joined by City of Bloomington staff and elected officials for a groundbreaking ceremony Monday at the former State Farm building along Washington and Jefferson Streets in Downtown Bloomington.
Fern's company, Urban Equity Properties [UEP], aims to restore and repurpose the building into an 183-unit apartment complex that appeals to customers looking for more luxury and upscale living.
That's raised some eyebrows among Twin City renters desperate for lower cost options.
But Bloomington City Council member Cody Hendricks, whose ward encompasses Downtown Bloomington, believes that although this may not fall under the umbrella of "affordable housing," it is still addressing the city's need for more sustainable residential units.
"As we have more and more housing, you know, the hope is that we're going to see some of those prices come down and become more affordable," Hendricks said. "It's something that's challenging, and there's not going to be a silver bullet, but I don't see anything we're doing in creating more and more housing that's going to hurt anything."
Bloomington's Director of Development Services Kelly Pfeifer said she sees the project as a way to address an overlooked demographic in Bloomington: young people just starting a career.
Fern confirmed this, making it clear that this was not a student-housing project.
"Any housing is important. So, 183 units into downtown, that's big. The type of units is also important," Pfeifer said. "These are one and two bedrooms; they're designed for the singles, the starters, the executives."
The crisis Bloomington-Normal has endured with a lack of affordable housing isn't addressed head-on by G.J. Lofts. Prices typically range from $1,200-$2,000 a month. But there is belief that a shift could occur to open up more affordable housing to those that need it, while more financially-capable residents can reside in the new building.
"One of the reasons we don't have affordable housing is because we don't have enough housing. So when you can bring on more supply, it should temper some of those things," Pfeifer said. "So while it isn't 'affordable,' as in subsidized, their target rents are affordable for our area according to our area median income."
A monumental day for Downtown
The nearly $80 million project is not just significant on the housing front. It is the first time the historic building will be used since 2018. After State Farm officially moved all of its employees out of the building, Fern bought the vacant property in 2019 and started planning from there.
He's since purchased the former Park Plaza Garage, across Jefferson Street from the future G.J. Lofts, to create parking for residents, plus about two dozen public parking spots.
"I'm actually still in shock that we're here today — actually having this groundbreaking site. I can't believe, but it's fantastic." Fern said. "It's been a long road, but I'm still 100% convinced it was worth it."
G.J. Lofts is not part of the streetscape project or the plethora of other work in Downtown, but it does signify a major change in the area. UEP wants to create something that is exquisite while keeping the history the Art Deco building provided.
"We aren't just celebrating the start of construction, or really the continuation of the construction that's occurring. We're also celebrating momentum. We're celebrating confidence in our downtown. We're celebrating a future that many people spent decades imagining and working towards," Hendricks said.
The project also symbolizes a successful public-private partnership. G.J. Lofts received a federal tax credit granted to projects revitalizing properties with historic value. The city also ponied up cash and resources, providing additional tax incentives and offering a bridge loan had UEP not gotten that federal tax credit.
The Bank of Pontiac is financing the project.
"This... building was such an icon for the City of Bloomington and for Downtown. It was incredibly important that we work with whomever had purchased it to try to achieve their vision in a way that works for the whole area," Pfeifer said.
Luckily, Fern had the interests of preserving the history of the area at the forefront of his planning. He said the building's neon accent lights are in remarkably good shape and will once again light up. And eventually, G.J. Lofts will restore the tradition of putting a Christmas tree on top of the building during the holiday season.
Phase one, which includes 57 apartments and a plethora of restaurants, is set to be finished next summer, while the remainder of units are scheduled to be complete in the 2028 summer.
"To have the largest conversion outside of Chicago in the state's history... in Bloomington, Illinois, that just shows the potential for the City of Bloomington and what can be done," Fern said. "Come this time next year, a lot of folks are going to be impressed with the finished product for the first phase."
