Horizon Realty buying South Loop apartment tower for $90M+

The seller, Crescent Heights, is also shopping another residential complex in the neighborhood

May.May 23, 2018 08:00 AM
The Park Michigan at 1212 South Michigan Avenue

The Park Michigan at 1212 South Michigan Avenue

Horizon Realty Group is buying a 30-story South Loop apartment tower from Crescent Heights.

Chicago-based Horizon Realty is acquiring the 344-unit Park Michigan at 1212 South Michigan Avenue for between $90-$100 million from real estate firm Crescent Heights, sources told Crain’s.

Miami-based Crescent Heights bought the building for $65.5 million in 2011.

It is also selling the 332-unit Lex building at 2138 South Indiana Avenue, seeking $116-$120 million. Meanwhile, it continues to develop the nearby NEMA Chicago skyscraper, a 76-story, 792-unit apartment complex at Roosevelt Road and Michigan Avenue.

NEMA Chicago, formerly known as One Grant Park, is one of a number of residential projects underway in the South Loop, including a 500-unit development at 1326 South Michigan Avenue and the 479-unit Essex on the Park tower at 808 South Michigan Avenue.

Developers will complete more than 2,700 units in the South Loop in the next year and a half, consulting firm Integra Realty Resources said.

“The South Loop is going to become very competitive for rents over the next 12-18 months with the number of new units being delivered,” Integra’s Ron DeVries told Crain’s. “But older buildings like (the one Horizon is buying) should continue to perform well since most of the pricing impact will be felt at the newer properties.”

The average unit in the building rents for $1,723 a month, or $2.51 per square foot, according to CBRE marketing material earlier this year. The building was 92.2 percent occupied at the time.

Horizon and Crescent Heights did not comment on the deal. [Crain’s]John O’Brien 

Related Articles

Rendering of Sterling Bay/Magellan tower at 300 North Michigan Avenue just south of the Chicago River

Dutch hotelier to add 280 rooms to planned 47-story tower, then buy a piece of it

Location of the Poplar-Prairie Stone Crossing and Walton Street Capital CEO, Neil Bluhm (Credit: Google Maps and Getty Images)

Walton Street Capital’s mall sale highlights retail market woes

1035-1065 N Orleans St (Credit: Google Maps)

Developers place bets on another downtown hotel

2537 North Pulaski Road in Logan Square (Credit: Google Maps)

‘Hipster’ concert venue will cause gentrification, Logan Square activists claim

Former NFL player Israel Idonije and 200 W. Madison St. (Credit: Getty Images, Google Maps)

Former Chicago Bear launches 1871-styled incubator with insane lease rates

Homewood Suites by Hilton Chicago at 1101 South Wabash Avenue, Best Western Grant Park Hotel at 1100 South Michigan Avenue and Warren de Haan, head of originations at Acore Capital

Two South Loop hotels get refinanced for $147M amid strong market

PepsiCo CEO Ramon Laguarta and WeWork CEO Adam Neumann with the Old Post Office (Credit: Getty Images)

Space race: WeWork, PepsiCo may take a combined 320K sf at 601W Companies’ Old Post Office

Old Post Office and office brokers Allen Rogoway, David Burden and Lisa Davidson (Credit: Wikipedia)

Difference maker: Uber’s monster lease at 601 W Companies’ Old Post Office could transform local office market