A huge Bronzeville apartment complex is changing hands in what, if completed, would be the largest Chicago single multifamily property transaction since 2007.
Draper & Kramer is selling the nine-building, 1,869-unit Lake Meadows to New Jersey-based Antheus Capital, Crain’s Report.
Terms of the deal were not disclosed, but given the size of the complex and its 97 percent occupancy rate, Antheus likely paid more than $150 million for the property, the outlet reported.
The deal also reflects investor confidence in Chicago’s multifamily housing market, which has fared far better than the rest of the commercial real estate sector. In addition, high interest rates and a tight lending environment are depressing property values, even condos, making it possible for well-capitalized buyers to sometimes buy large properties at low prices, especially those tied to related assets. approaching debt maturity.
This is far from the first big deal in recent years for Draper & Kramer, led by Chief Executive Todd Bancroft. In March, the company listing The 656-unit 11-30 building on Michigan Avenue and the 275-unit Aspire on South Wabash.And in 2019, Draper Sell The 1,675-unit Prairie Shores complex, also in Bronzeville, sold to Golub and Farpoint for just under $170 million, or about $100,000 per unit.
Meanwhile, Antheus continues to expand its Windy City portfolio, having acquired nearly 5,000 apartments on the South Side since 2007. Its holdings include the 1,031-unit Regents Park, the 330-unit Shoreland Apartments and the 250-unit Solstice on the Park.
Lake Meadows is the largest privately financed urban redevelopment project in the country
It was built in the 1950s. Average rent was $2.22 last quarter, up 9% from a year earlier. Monthly rents range from $998 for a studio to $3,624 for a four-bedroom, the outlet reported, citing data from CoStar.
— Quinn Donoghue