Hines Snags West Loop Apartment Building for $73M

A luxury apartment complex in West Loop has sold for a surprisingly low amount, despite a relatively strong multifamily sector in Chicago.

Oregon-based Green Cities sold the 199-unit Emme apartments at 165 North Desplaines Street to a real estate investment trust overseen by Houston-based Hines, which paid just under $73 million for the building, Crain’s reported. That’s about $365,000 per unit.

It’s unclear how much Emme has depreciated since interest rates increased last year, pushing down property values across the city and much of the country. Built in 2017, the property hadn’t traded hands before. But given its prime location, 96 percent occupancy rate and average monthly rent of $2,970, it’s safe to assume the building would have sold for more than $365,000 per unit in previous years.

Only a handful of multifamily properties have recently sold in Chicago, and it’s especially rare in the buzzing West Loop area. However, other apartment sales provide a clue as to how much property values have gone down.

Green Cities bought the 329-unit Lake & Wells building at 210 North Wells Street for $98 million in May. That’s 20 percent less than the $123 million it cost to develop. Miami-based Crescent Heights recently purchased the 400-unit North Water Street apartments in Streeterville for $173 million, down significantly from the $240 million it paid for the site in 2016.

Aside from property values, Chicago’s multifamily sector is faring well compared to the city’s retail and office markets, which are still reeling from the pandemic. Demand is strong, and rents are high, although they’ve finally started to slow after skyrocketing for months.

—Quinn Donoghue