Magellan Multifamily Tower Could Fetch $258M In Sale
Magellan Development, one of the busiest developers in the East Side, is selling another of its Lakeshore East apartment towers. Coast (shown, center), a 45-story, 515-unit building, joins the nearby Shoreham on the market and could entertain bids reaching $258M.
Some contributing factors to the speculation on a sale price: First, downtown multifamily assets are fetching strong prices so far in 2016, according to Crain's. Invesco paid $240M for 340 E Water in Streeterville in January. Crescent Heights is in talks to buy North Harbor Tower from Heitman, and Gerding Edlen acquired 420 East Ohio for $110M in January.
Second, Coast's value could benefit from being next door to Magellan's planned Wanda Tower. Finally, it's a good time for owners of Class-A multifamily to cash out. Magellan and its partner, JP Morgan Asset Management, could see a 200% return on equity if Coast sells for $258M. [Crain's]