Three Downtown Apartment Towers Hit the Market
Smithfield Properties and Heitman, looking to take advantage of a seller's market, have placed three multifamily towers for sale. Heitman is seeking buyers for 420 East Ohio in Streeterville, and North Harbor Tower, near Maggie Daley Park. Smithfield hired a broker to entertain offers for Eight O Five (shown) in River North, which only opened in June.
The three buildings total 1,155 units, but North Harbor and 420 East Ohio are being marketed as value-add opportunities, Crain's reports. Heitman rehabbed 121 of 263 units, and a buyer would be able to finish the task to compete with newer buildings in the market. The 600-unit North Harbor Tower, delivered in 1988, will be a larger challenge for a buyer. Heitman rehabbed 226 units there and has seen a 16.8% return on the renovated units.
Apartment sales downtown totaled $699M in the first half of 2015, but the record of $1.43B set in 2011 isn't within reach, as many of the buildings now on the market won't change hands until next year. [Crain's]