Chicago's Branching Out
Here's the latest on Chicago real estate powerhouses doing deals around the country. Heitman could be breaking all pricing records for trophy towers in Atlanta's Buckhead neighborhood, we hear. Sources say Heitman (which declined to comment) is under contract to buy the Duke Realty/Pope & Land building, 3630 Peachtree Tower, for somewhere around $380/SF, a Buckhead record which values the 425k SF tower at $161.5M. Sources say the firm could close on the deal as early as next month. (You all have one month to clean up in anticipation.)
Over in the metro Phoenix area, MetroWest Development is working on three multifamily projects, Doug Gannett tells us. “The city has done a wonderful job setting the table up for developers," he says. Besides creating new urban zones, there's also lower cost for development compared to Chicago. “We don't have problems with trades here. It's a non-union town. It's much more affordable.” MetroWest’s projects are all shooting for a $1.50 to $1.60/SF rental because those multifamily developers in Phoenix chasing $2/SF rents are “giving me heartburn,” Doug says.