Another apartment landlord is turning to the short-term rental market to help pad their bottom line.
Hartz Mountain Industries is seeking the city’s permission to house short-term rentals in its One Superior Place, an 809-unit apartment building in at 1 West Superior Street in River North, according to Crain’s. If approved, the landlord would enter into a deal with Kasa Living to provide 161 short-term rental units, comprising about 20 percent of the building.
One Superior Place would need a rezoning to allow for rentals lasting under 30 days, according to Crain’s.
The deal would further expand the short-term rental market in Chicago, which has grown rapidly in recent years. It also signals the increasing willingness of multifamily landlords to accept such uses in their buildings as a way to boost occupancy in a competitive downtown apartment market.
Earlier this month, short-term rental company Sonder announced the doubling of its footprint in Chicago, including taking up 92 units in the newly delivered Essex on the Park. Companies like Lyric, Stay Alfred, Domio and Blueground have also recently expanded to Chicago, competing in the short-term rental market.
The expansion of short-term rentals will likely put pressure on the hotel market, which has been riding high after record tourism helped boost occupancy.
New Jersey-based Hartz bought One Superior Place in 2011 for $320 million, according to Crain’s. The building opened in 1999 and was 96 percent leased in the first quarter of this year. [Crain’s] – Joe Ward