Barings is looking to offload an apartment building near Bally’s planned casino complex, adding to a slew of multifamily properties in Chicago to hit the market in recent months.
Barings has hired Berkadia to sell the 15-story, 141-unit Mondial River West building at 910 West Huron Street, Crain’s reported. The structure was developed as a condominium complex before being converted into apartments after the Great Recession.
Despite high interest rates making it tough to fetch a buyer, a plethora of downtown apartment landlords are attempting to sell their holdings. Around 15 notable multifamily buildings in the downtown area, including Eight O Five, Union West, Mila and Alta Grand Central, are on the market.
Not many properties have changed hands recently, but apartments that have sold indicate a decline in their values due to high interest rates and a tight lending climate. The North Water Apartments in Streeterville, for example, sold for $173 million in June, down significantly from the $240 million it fetched in 2016.
“Capital is cautious,” Berkadia’s Pete Evans told the outlet. “It’s a math problem right now with financing these deals.”
Some real estate investors have grown wary of Chicago amid rising property tax assessments, crime rates and the progressive agenda of new Mayor Brandon Johnson. However, apartment demand in Chicago remains strong, resulting in high occupancy rates and rental prices.
The Mondial’s close proximity to the planned Bally’s casino complex could help land a buyer, as the project is already attracting investors and developers who anticipate a positive impact from the casino.
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Shapack Partners is planning 1,400 apartments and a hotel near the casino, while Canadian developer Onni Group aims to construct 2,700 apartments on Goose Island.
Mondial’s units are on the large side since they were developed as condos, averaging 1,088 square feet. The building has an occupancy rate of 92.2 percent, with monthly rents ranging from $1,951 for a studio apartment to $9,771 for a three-bedroom unit.
— Quinn Donoghue