Crescent Heights' Latest Acquisition Continues Downtown Buying Spree
Crescent Heights has been one of the busiest firms in downtown multifamily real estate the past two years. The Miami-based company is adding to its downtown holdings by agreeing to buy its second Lakeshore East tower in the past year, according to Crain's Chicago Business.
Crescent Heights has a preliminary agreement to buy Coast at Lakeshore East, a 45-story apartment tower at 345 East Wacker Drive, from a JV of Magellan Development and JP Morgan Asset Management. Since this is preliminary agreement, terms were not disclosed, but Magellan was seeking $258M for the building. The market has softened recently, which may impact the price tag: Rent growth in the downtown market has flatlined and downtown will receive 6,517 new apartments this year.
Crescent Heights' other Lakeshore East property is North Harbor Tower, which it bought last May for $237M; it was the second-largest multifamily sale in a record-setting 2016 for the sector. Crescent Heights is also busy in the South Loop. It bought Burnham Point for $126M in June 2015, and broke ground in January on One Grant Park, an 829-foot-tall apartment building that will be the tallest building south of Willis Tower. One Grant Park is Crescent Heights' first ground-up project in Chicago.