Two Downtown Apartment Buildings Are For Sale
Downtown multifamily was the hottest asset class of 2016's first half and that's going to continue as we start the final six months of the year. HFF was hired to find bidders for two apartment towers in the South Loop and West Loop.
One of the assets is 180 North Jefferson (pictured), a 274-unit tower in the West Loop owned by a JV of Draper & Kramer and GE Asset Management. It's walking distance to the always popular Randolph Street restaurant district and the Chicago French Market in the Ogilvie Transportation Center. The other is 1401 South State, a 278-unit tower owned by Marquette. The Draper & Kramer-GE JV paid $75M for 180 North Jefferson in 2007, according to Crain's. Marquette acquired 1401 South State four years ago in a $71M deal.
A combination of rising rents and investor appetite drove demand for downtown multifamily assets in Q1 and Q2. Multifamily sales accounted for $1.11B in transaction volume in the first six months of the year. The record: $1.43B in 2011. [Crain's]