Single-tenant office buildings in Fulton Market are still selling for big money, but a luxury apartment building in the neighborhood got snapped up at a discount. Chicago-based investor Dwelle acquired the 72-unit 1247-1249 West Madison St. for $32.8M, or about $405 per SF, according to company officials. They couldn’t resist the price.
“It’s a COVID-19-era deal,” Dwelle Managing Principal Drew Breneman said. “The going-in cap rate is higher than anything we’ve come across in years of comparable size and quality. We like the price per pound we are getting here, too.”
Even though most of the property’s tenants’ incomes have not been hurt by the pandemic, he added, the per SF price is 20% lower than what the Monroe Aberdeen apartment building around the corner at 1050 West Monroe St. sold for in March. Most of the properties the firm looked…
Read the full story here.