HP buys Lincoln Park apartment building from Novak for $20M

HP Ventures bought a five-story Lincoln Park luxury apartment building in one of the priciest per-room deals in at least five years.

Chicago-based Novak Development sold the 32-unit building at 2050 North Clark Street for $20.5 million, Crain’s reported. The price comes out to about $641,000 per unit, the most paid per unit for a Lincoln Park apartment building since 2017.

The cost reflects the large size of the residences and high rents. People living in the building pay between $3,000 and $7,000 per month for apartments ranging from 780 to 1,750 square feet. The units include high-end finishes and private balconies that cater to the wealthy tenants. The property is 100 percent leased.

Novak Development, an affiliate of Novak Construction, financed the property with a $11.8 million construction loan from Hinsdale Bank & Trust in 2017. The developer refinanced with the same bank in 2019 and secured a $15 million loan.

HP Ventures owns about 500 apartments in Chicago, mostly in neighborhoods like Lincoln Park, Wicker Park and Avondale, and some in suburbs such as Countryside, Downers Grove and Barrington.

The Chicago apartment market has been making steady recovery over the past year as demand rises and landlords increase rents when tenants leave. HP’s Peter Cook claimed to the publication that tenants often stay with their buildings, in part because the company doesn’t hike rents as much as some other landlords.

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— Victoria Pruitt