Pacific Reach Properties bought a Loop apartment tower, its first acquisition in the lucrative Chicago rental market.
The Vancouver-based private equity firm paid $121 million for the Linea apartments at 215 West Lake Street.
The seller of the 33-story property was Chicago developer Moceri & Roszak, according to Cook County records.
Citibank provided Pacific Reach with an $80 million acquisition loan, county records show.
Pacific Reach owns a number of properties in Canada, Phoenix and Los Angeles, but the Linea is its first multifamily property in Chicago. Its portfolio also includes a surface parking lot at 601 West Monroe Street, according to its website.
Moceri & Roszak put the year-old building on the market this summer, reportedly seeking $136 million. The firm led by architect-turned-developer Thomas Roszak and tech executive Dan Moceri invested some $98 million in the project, Crain’s reported earlier this year.
The firm developed several multifamily buildings Downtown but recently pivoted to enter the office market, securing a $71.4 million construction loan for a 20-story office tower at 145 South Wells Street.
Pacific Reach’s entry into the Chicago multifamily market comes at a time of solid rent growth and occupancy rates, despite the addition of thousands of new units in recent years. But more than 8,000 new units are expected to be delivered in the next two years, prompting worries of a looming slowdown.