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These 10 Apartment Sales Paced A Record-Shattering Year For Downtown, Suburban Multifamily

WASHINGTON DC 06.27.2017

THE WASHINGTON DC STATE OF THE MARKET

Matt Bronfman -- Jamestown Properties
Anthony Lanier -- EastBanc
Herb Miller -- Western Development

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

180 North Jefferson Street, Chicago

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

Stonebridge Apartments, Arlington Heights, IL

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

420 E Ohio, Chicago, IL

Location: 420 East Ohio St.

Buyer: Gerding Edlen

Seller: Heitman

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

Eight O Five, Chicago

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

River North Park, Chicago

Location: 320 West Illinois St.

Buyer: Angelo Gordon

Seller: Waterton

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

850 N Lake Shore Drive

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

One East Delaware Place, Chicago

Location: One East Delaware Place

Buyer: A JV of Golub and Alcion Ventures

Seller: Waterton

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

Axis Apartments, Chicago

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

North harbor Tower, Chicago

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

340 E Water, Chicago, IL

Location: 340 East North Water St.

Buyer: Invesco

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.