Universal Destinations & Experiences
To Open Universal Horror Unleashed
Crain's Chicago Business
A new immersive horror experience is coming to a site near the Bally’s casino, casting doubt on the future of a massive residential project proposed there that's been mired in a labor dispute over the past year.
Universal Destinations & Experiences plans to open Universal Horror Unleashed, a year-round themed entertainment venue, at 700 W. Chicago Ave. in 2027, in an empty 114,000-square-foot industrial building on the site, according to an announcement June 24 from Mayor Brandon Johnson’s office.
Prominent Canadian developer Onni Group bought the 7-acre property that includes the vacant building, a former Tribune advertising insertion plant that ceased operations in 2012, for about $45 million in 2022 and subsequently won Plan Commission approval for a 2,451-unit apartment complex on the site. But that project has been stalled for about a year as the influential Service Employees International Union 1 has lobbied against it due to not reaching a labor peace agreement with Onni Group.
City officials didn’t address the future of the apartment proposal when announcing Universal’s plans for the venue at a news conference. But Universal is receiving incentives for the project through Illinois’ Economic Development for a Growing Economy tax credit program, and according to the agreement, the venue must maintain operations for at least 10 years. That suggests Onni is moving on from its plans, or at least tabling them for a long time.
But a spokesperson for the firm said in a statement that the developer is committed to advancing the residential project and that the lease to Universal is a complementary step that supports those plans.
“This strategic lease aligns with Onni’s broader development timeline and reflects the company’s ongoing commitment to delivering a transformative, long-term vision of the site,” said Duncan Wlodarczak, Onni Group chief of staff. Wlodarczak said the lease provides “interim utility and activation of the space” while Onni “remains committed to securing the necessary approvals to realize its comprehensive redevelopment plans,” which are “designed to bring lasting economic and social value to the community, while also delivering much needed housing” to the city.
SEIU didn't respond to requests for comment from Crain's, and a spokesperson for the mayor's office didn't provide a comment with further details. Universal said it does not comment on the details of its lease agreements.
Universal Horror Unleashed will be the second venue of its kind, after one set to open in Las Vegas in August, Page Thompson, president of new ventures for Universal Destinations & Experiences, said at the news conference June 24. The venue will feature “film-quality” haunted house experiences that will put fans in the world of Universal horror movies like "Frankenstein" and "The Mummy," as well as themed bars and food and beverage offerings, Thompson said.
“Our goal is to design a world-class experience that honors our legacy in horror but is deeply connected in this city and to our riverfront location,” he said.
Phil Clement, president and CEO of World Business Chicago, said the Universal venue is another way that Chicago is defining “the rise of the experiential economy.” It follows other announcements like 360 Chicago’s expansion at the top of the former Hancock Center and a planned $50 million magic venue steps from the Magnificent Mile, the type of experience-based attractions that are more resilient to challenges like e-commerce than traditional stores.
“It joins a powerful wave that’s transforming underused space into opportunity and elevating Chicago’s status as a national model for what’s next in entertainment,” Clement said.
The venue will create more than 400 permanent jobs and generate more than $1 billion in economic impact for the city, according to city officials. Construction on the project is expected to start in early 2026.
Onni Group asked the City Council's Zoning Committee to approve its proposed $1.1 billion residential project at 700 W. Chicago Ave. in May, leading to a dramatic scene in the halls surrounding the chamber as lobbyists, zoning attorneys and city officials discussed their options.
SEIU had contacted members of the committee to say they hadn't reached an agreement with the developer that would require Onni to not interfere with the union's bid to organize their residential buildings.
Local Ald. Walter Burnett, 27th, deferred the vote. He told reporters after the meeting that he and his colleagues were in the middle of a "game of chicken" between the developer and the union that has been boiling for years.
DLA Piper's Rich Klawiter, a zoning attorney for Onni, told the committee that such a labor agreement isn't required for City Council approval and shouldn't be considered, and that the project has "languished" during the yearlong delay "at precisely the time that this city needs capital investment and to put our tradespeople onto job sites."
Danny Ecker and Justin Laurence contributed.
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Rachel Herzog is a commercial real estate reporter for Crain’s Chicago Business. She joined Crain’s in 2023 from The Real Deal, where she had covered commercial real estate in Chicago. Before that, Herzog wrote for the Arkansas Democrat-Gazette. She is a graduate of UNC-Chapel Hill, receiving a bachelor’s degree in media and journalism, as well as a separate degree in Hispanic literature and culture.
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