A Miami-based developer is aiming to sell a 76-story luxury apartment building along the south end of Grant Park in a deal that could fetch one of the highest prices for a Chicago real estate property in recent years — and represents a major test of investor appetite in a sluggish market.
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Crescent Heights tapped CBRE to secure a deal for the 800-unit NEMA Chicago at 1210 South Indiana Ave., CoStar reports. Despite headwinds such as high interest rates and difficulty securing capital, the luxury tower could sell for a pretty penny due to the size of the tower and relatively robust demand for luxury residential properties.
It is unclear how much Crescent Heights is expecting in a sale or why the developer decided to sell the building, according to CoStar. The building is the ninth-tallest in the city, according to the Council on Tall Buildings and Urban Habitat.
Crescent Heights completed NEMA Chicago in 2019 as part of what was initially planned as a two-tower project. Developers haven't disclosed why they haven't built the other tower, though another developer will have the chance to do so. Crescent Heights hired CBRE to find a buyer for the neighboring development site about three months ago, CoStar reported.
The highest price for a multifamily tower in the city this year is the $231.5M purchase of a 44-story, 492-unit apartment tower in the West Loop by Spanish billionaire Amancio Ortega, founder of the clothing retailer Zara.
Crescent Heights was also involved in another large deal over the summer when it paid $173M for the residential section of a 50-story tower in Streeterville. When purchased, it was the highest price paid for a residential building in Chicago in almost two years, CoStar reported.
While the sale of NEMA Chicago could set another price record, activity has been off pace for the year. There have been a combined $3B in Chicago-area apartment sales to date, with sales projected to fall well short of the $5B totals recorded in each of the past two years, according to CoStar data.
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