Streeterville Is Crushing Downtown Multifamily! Here's Why.
One downtown submarket shone like a beacon in Q1. Streeterville is bustling with activity across several sectors, and multifamily is the straw stirring the neighborhood drink. Streeterville apartment building sales accounted for $490M in transactions in Q1. With more buildings on the market, others ready for activation and cranes in the air, there are no signs of a slowdown soon. Let's look at five multifamily happenings in Streeterville.
1. 340 E Water Sells For $240M
Convexity Properties delivered this 50-story high-rise in tandem with the Loews Hotel last year and sold its 398 apartments to Invesco in January. At the time, the sales price of $604k/unit was the third-highest ever paid for a downtown apartment building. Invesco's interest in the building was a sign that out-of-town investors had healthy appetites for downtown multifamily assets, and music to the ears of owners looking to make a strong ROI on their assets.
2. 850 N Lake Shore Dr Sells For $140M
Speaking of strong ROI, Integrated Development and National Real Estate Advisors made out like bandits with the sale of this 192-unit apartment building in the former Lake Shore Athletic Club when JP Morgan Asset Management bought it two weeks ago. At $707k/unit, it's a record per-unit price for downtown multifamily. Rents at 850 N Lake Shore range from $1,913 per month for a studio to over $11k per month for a three-bedroom.
3. 420 E Ohio Sells For $110M
Gerding Edlen had the first nine-figure acquisition of the year when it bought this 263-unit building from Heitman in January, at an average of $420k/unit. Heitman positioned the building as a value-add opportunity and rehabbed 121 apartments prior to the sale. Several older apartment buildings are being updated to compete with new deliveries. This sale indicates investors are willing to pay for the right value-add plays.
4. Jupiter Realty's 465 N Park Dr Project
Jupiter Realty presented plans for this 45-story, 444-unit tower to the public last year. It's in a perfect location between the Loews Hotel and AMC River East 21 movie theater. Jupiter's proposal also calls for a $3.5M upgrade to nearby Ogden Park, which would be seen as a "public benefit" to the area; residents frequently complain about a lack of open space in Streeterville.
5. Golub Moment And Sienna Flats
Pre-leasing on Moment, Golub's 45-story, 490-unit tower at 545 N McClurg Court has begun, with the first tenants expected to move in this July. Sienna Flats, consisting of 50 loft-style apartments at 423 E Ohio, opens in September, with pre-leasing starting next month. Golub CEO Michael Newman and SVP Paula Harris told Bisnow in February the properties are ideally located for Streeterville medical district workers who want to live close to their jobs and nightlife, and renters who want larger footprints but don't want to deal with the hassles of a mortgage.