Streeterville Continues To Pace Downtown Multifamily Activity

850 N Lake Shore Drive

Investor appetite for prime downtown multifamily assets continues to set records. JP Morgan Asset Management paid $140M for 850 N Lake Shore Dr, a 192-unit apartment building formerly known as the HQ for the Lake Shore Athletic Club.

The sales price—$707k/unit—blows away the previous high mark for downtown multifamily assets, Crain's reports. The previous record: $651k/unit for 111 N Wabash, which sold for $328M in January 2015, the most expensive multifamily deal of last year. The cap rate for downtown multifamily sales last year beat pre-recession levels, at 4.33%.

Northwestern sold the property to Integrated in 2008, which redeveloped it five years later. Rents at 850 N Lake Shore range from $1,913/month for a studio to over $11k/month for a three-bedroom unit.

Streeterville multifamily sales have been attached to eye-popping numbers this year. Convexity Properties' 340 E Water sold for $240M in January, an average of $640k/unit. Several multifamily developments are in the works, including a 444-unit project at 465 N Park Dr. [Crain's]

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