A luxury apartment complex on the West Loop is selling for a surprisingly low price despite Chicago’s relatively strong multifamily housing market.
Oregon-based Green Cities sold 199 Emme apartments at 165 North Desplaines Street to a real estate investment trust regulated by Houston-based Hines, which paid nearly $73 million for the building. report. Approximately $365,000 per unit.
It’s unclear how much Em has lost value since interest rates rose last year, depressing property values in the city and much of the country. The property was built in 2017 and has never changed hands before. But given its prime location, 96% occupancy rate and average monthly rent of $2,970, it’s safe to assume the building would have sold for more than $365,000 per unit in previous years.
There have been only a handful of multifamily homes for sale in Chicago recently, a rarity especially in the buzzing West Loop area. However, other condo sales offer clues as to how much real estate values have fallen.
In May, City of Green purchased the 329-unit Lake & Wells building at 210 North Wells Street for $98 million. That’s 20 percent less than the $123 million development cost. Miami-based Crescent Heights recently purchased 400 North Water Street apartments in Streeterville for $173 million, down significantly from the $240 million it paid for the site in 2016.
In addition to real estate values, Chicago’s multifamily housing market is doing well compared with the city’s retail and office markets, which are still reeling from the pandemic. Demand is strong, and so are rents, although they are finally starting to slow after months of skyrocketing.
— Quinn Donoghue
