These 10 Apartment Sales Paced A Record-Shattering Year For Downtown, Suburban Multifamily
The sexiest sector in Chicago commercial real estate last year was far and away multifamily. Sales volume records were on pace to be shattered in the city and suburbs by July, and they were. Downtown sales topped $1.53B, while suburban apartment sales eclipsed $1.3B. Today, we count down the top 10 multifamily sales of 2016, according to Real Capital Analytics.
10. 180 North Jefferson For $96.5M
Location: 180 North Jefferson St.
Buyer: JLL Income Property Trust
Seller: A JV of Draper and Kramer and GE Asset Management
Date of Sale: December
The Draper and Kramer/GE Asset Management JV bought this 274-unit tower in the West Loop for $75M in 2007 and patiently waited for the market to rebound so it could turn a profit.
9. Stonebridge Village For $105M
Location: 600 West Rand Road, Arlington Heights
Buyer: The Connor Group
Seller: Maria Magnus
Date of Sale: February
The suburbs' top multifamily sale of the year is the only nine-figure deal outside of the urban core and the biggest suburban apartment sale of the past two years. Connor has been very active buying multifamily in the burbs; this was the firm's third acquisition in 24 months.
8. 420 East Ohio For $109M
Location: 420 East Ohio St.
Buyer: Gerding Edlen
Date of Sale: April
Gerding Edlen announced it acquired this 263-unit tower in January; the deal was finalized in April. Heitman marketed 420 East Ohio as a value-add opportunity and rehabbed 121 apartments when it put the building on the market.
7. Eight O Five Apartments For $114M
Location: 805 North LaSalle St.
Buyer: Berkshire Group
Seller: Smithfield Properties
Date of Sale: June
Smithfield delivered this 292-unit River North tower in 2015 and cashed out while the market was hot. Berkshire paid $391k/unit.
9. River North Park For $122.5M
Location: 320 West Illinois St.
Buyer: Angelo Gordon
Date of Sale: November
Waterton chairman David Schwartz said last October that the multifamily landscape was extremely competitive on the acquisitions front. Perhaps preparing for the market to soften, Waterton spent 2016 disposing of assets and refinancing others to pay down debt loads. This 399-unit building sold for an average of $306k/unit.
5. 850 North Lake Shore Drive For $140M
Location: 850 North Lake Shore Drive
Buyer: JP Morgan Asset Management
Seller: Integrated Development
Date of Sale: April
JP Morgan paid a record $707k/unit for the former home of the Lake Shore Athletic Club, which now houses 192 apartments. With rents ranging from $1,913/month for studios to $11k/month for three-bedrooms, the firm sees a guaranteed revenue generator in Streeterville's northern edge.
4. One East Delaware Place For $145M
Location: One East Delaware Place
Buyer: A JV of Golub and Alcion Ventures
Date of Sale: September
Golub had a busy 2016 in multifamily, delivering 1,600 apartments to downtown, but it was also in acquisition mode as it strengthened its Gold Coast presence with this 306-unit building across the street from the Golub-owned Chestnut Place.
3. Axis Apartments & Residences For $230M
Location: 441 East Erie St.
Buyer: Group Fox
Seller: LaSalle Investment Management
Date of Sale: December
The question wasn't if downtown apartment sales volume would set a record this year, but when. When the ink dried on Group Fox's acquisition of this 615-unit building, the record was shattered. Group Fox paid $374k/unit.
2. North Harbor Tower For $237M
Location: 175 North Harbor Drive
Buyer: Crescent Heights
Seller: Florida State Board of Transportation
Date of Sale: May
Crescent Heights spent 2016 expanding its downtown footprint and made a splash with the acquisition of the 55-story, 600-unit building in May, giving it a presence in Lakeshore East and a prime value-add opp. Crescent Heights now controls 2,200 apartments downtown.
1. North Water Residences For $240M
Location: 340 East North Water St.
Seller: Convexity Properties
Date of Sale: January
The first big sale of 2016 remained the largest sale of the year when the dust settled. The 50-story building was delivered two years ago with the Loews Chicago Hotel, which Convexity sold for $156M in the top hotel sale of 2015. Invesco got 398 apartments in the center of Streeterville, surrounded by Navy Pier, Millennium Park, Downtown and River North. And the building's value will only increase with construction of a 44-story tower at 465 North Park underway.
CORRECTION, FEB. 6, 9:19 A.M. CT: A previous version of this story listed River North Park's sale price at $99. According to the firm that brokered the sale, HFF, the actual sale price was $122.5M. The story has been updated.