JPMorgan Asset Management wants to offload another multifamily asset that could amount to a loss on investment.
The firm has hired JLL brokers Kevin Girard, Mark Stern and Zachary Kaufman to sell the 227-unit Parker Fulton Market, at 730 West Couch Place, in Chicago’s West Loop, Crain’s reported.
JPMorgan bought the 29-story apartment building for $111.4 million, almost $491,000 per unit, in late 2017. Although an asking price has not been revealed, sources familiar with the listing expect offers to hover above $100 million.
That means it could be JPMorgan’s second Chicago multifamily asset this year to trade for less than what it paid. The company recently sold the 19-story, 198-unit property at 850 North Lake Shore Drive to Crescent Heights for $80 million, about $404,000 per unit. It spent $707,000 per unit — $140 million — to buy it in 2016.
Even a relatively strong multifamily sector isn’t immune to the impact of high interest rates, which have crushed property values across the city since last year. Increased borrowing costs, along with tough lending standards, have also hindered sales. Nationwide, apartment sales were down 35 percent year-over-year in February, the outlet reported, citing research firm MSCI Real Assets.
There have been a few notable sales in the Windy City this year, though. The largest transaction occurred in March, when FPA Multifamily bought the 500-unit Paragon Chicago tower, at 1326 South Michigan Avenue, for $144 million.
Parker Fulton Market, developed by a venture led by Shapack Partners and Focus, has an occupancy of 98 percent, with average rents of $3.67 per square foot. Marketing materials suggest that prospective buyers could modernize some aspects of the building to increase rents, aligning them with newer apartment developments in the area.
—Quinn Donoghue
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