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Horizon Realty buying South Loop apartment tower for $90M+
The seller, Crescent Heights, is also shopping another residential complex in the neighborhood
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