Horizon picks up North Side apartment complex for $39M

Edgewater building last fetched $37M in 2016

Horizon Realty Group's Danny Michael with 5600 Sheridan
Horizon Realty Group's Danny Michael with 5600 Sheridan (Horizon Realty, Apartments, Getty)

Horizon Realty paid $38.5 million to add a luxury apartment complex in Chicago’s Edgewater neighborhood to its portfolio.

The local firm bought the property at 5600 North Sheridan Road, dubbed The Bryn for its location in the Bryn Mawr Historic District near the lakefront, from an LLC that shares an address with Boston private-equity firm Alcion Ventures. Public records show the corporation bought the property in partnership with Chicago-based Golub & Co. for $37 million in 2016.

The building has studio, one, two and three-bedroom units, according to the apartment complex’s website, with retail on the ground floor. Monthly rents range from $1,329 to $4,480. The 98,800-square-foot property was built in 1969 and has 133 units.

Horizon manages 26 rental properties that have more than 2,500 units and eight commercial properties throughout Chicago, according to its website. The firm’s portfolio includes a housing complex for active seniors in the suburb of Evanston as well. Horizon didn’t return a request for comment.

Although rising interest rates have disrupted some Chicago multifamily market deals in recent months, comparably high cap rates, a measure of rental income after expenses divided by a property’s purchase price, reflect strong demand.

In addition, rising single-family home prices and higher rates are making it tougher for renters to buy, another reason multifamily rentals are still hot. Another reason capital is flowing to the market: office demand is down thanks to remote and hybrid work arrangements.

Multifamily sales in the Windy City include Cortland’s acquisition of a 25-story apartment building in River North for $105 million, as well as the $180 million joint acquisition of a South Loop apartment tower by Skokie real estate investment firm and a Dallas group.

Multifamily has been especially strong in the suburbs, where investors have been paying high prices for large complexes of 200 units or more. Those include Morgan Properties’ purchase of more than 1,000 apartments for $181 million earlier this month.