Luxury building near Wrigley Field hits market for $125M

A luxury apartment building near Wrigley Field is on the market for the second time in two years, now with an asking price of $125 million.

JDL Development and Harlem Irving are looking to sell Halsted Flats, a 269-unit building at 3740 North Halsted Street in Lakeview, Crain’s reported. It is one of the largest apartment buildings to be put up for sale since the pandemic started. A deal could signal renewed optimism in Chicago’s commercial real estate market.

So far, investors have backed away from buying or selling properties in Chicago’s downtown core because of uncertainty around pricing and demand for space.

Halsted Flats was constructed in 2014 and is one of the few new luxury apartments in the area. It first hit the market in October 2018 when Chicago’s rental market was red hot and developers were converting their condos to rentals. The developers never found a buyer.

Halsted Flats is about 91 percent occupied. Its average unit rental price was $2.93 per square foot in the third quarter, according to CoStar.

The developers financed the project with a $58.5 million construction loan and then refinanced it with a $72.5 million loan in 2015. The developers told the city in 2012 it would cost $73.4 million to build.

JDL is one of Chicago’s most active residential developers. Its other projects include One Chicago in River North. It also recently released plans for North Union, a 2,680-unit megadevelopment on River North that could be the city’s largest development project in 20 years.

[Crains] — Keith Larsen