Even with rising interest rates weighing on real estate values, owners of big Chicago apartment buildings are casting wider nets to catch buyers.
Local developer Jaime “Jay” Javors and investment firm Invesco are the latest to test the downtown investment sales market for large multifamily assets as the cost to borrow surges at the fastest pace in decades, Crain’s reported.
In Streeterville, Invesco hired CBRE to market the 398 apartment units atop the Loews Hotel building at 340 East North Water Street. And Javors also hired CBRE to find a buyer for Lake & Wells, a 329-unit high-rise at 210 North Wells Street.
This follows a string of large downtown apartment buildings going up for sale in recent weeks, as investors look to cash out of properties with rents at record highs while interest rates and uncertainty regarding an upcoming round of property tax assessments weigh on real estate values.
Late last month, Shaul Kuba’s CIM Group and Chicago-based Golub listed the 30-story, 280-unit Chestnut Place for sale at 8 West Chestnut Street in Chicago’s Gold Coast that a partnership between the firms bought in late 2017 for upwards of $80 million. That added to the options for buyers in the market, to apartment buildings already listed for sale that included the 363-unit Spoke in River West, the 245-unit 3Eleven tower in River North and the 310-unit Next property on the Near North Side.
The selloff hasn’t been isolated to the city. Owners of big buildings in Chicago’s suburbs are looking to make deals, too. An LLC tied to Opus Group, developer of the 113-unit Ellison at 1555 Ellinwood Street in suburban Des Plaines, has also hired CBRE to market that property for sale.
And a venture of Goldman Sachs and Chicago’s Magnolia Capital is seeking a buyer for the 21-story, 270-unit Vantage apartments in Oak Park, after winning a tax appeal at the property that prompted scrutiny from Cook County Assessor Fritz Kaegi.
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– Sam Lounsberry