A prominent multifamily developer and investor in Chicago wants to offload a development site near Fulton Market where a residential high-rise had been in the works.
Miami-based Crescent Heights has hired CBRE vice president Tom Svoboda to sell the vacant 35,600-square-foot parcel at 640 West Washington Boulevard, roughly three after Chicago City Council approved the firm’s proposal to build a 413-unit tower at the site, Crain’s reported.
For prospective buyers, it’s an opportunity to snag a prime piece of real estate in one of Chicago’s hottest neighborhoods, while capitalizing on a multifamily market that’s buoyed by steady rent growth and strong demand.
Conversely, the listing reflects the challenges of high interest rates and construction costs, which have stymied developments across the city since last year. While Crescent Heights’ exact reason for selling is unclear, the firm is constantly reevaluating its portfolio for “alternative executions,” said vice president Jason Buchberg.
The firm recently purchased 850 Lake Shore Drive from JPMorgan Asset Management for $80 million, a massive discount from its last sale price. Crescent Heights was also behind one of Chicago’s largest multifamily deals of 2023, paying $173 million for the 50-story, 400-unit tower at 340 East North Water Street in Streeterville, though that was another big loss for the seller Invesco.
“As evidenced by our recent purchase of 850 Lake Shore Drive and North Water Apartments as well as our other assets in Chicago, we have long term conviction in the market but we try to adapt as the world around us evolves,” Buchberg told the outlet.
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While an asking price has not been revealed, the West Loop site is likely worth more than the $20.1 million that Crescent Heights paid for it in 2020, as a developer would be able to forgo a costly and arduous zoning process thanks to the developer’s previous work on its proposal.
Crescent Heights may be kissing the Washing Boulevard site goodbye, but elsewhere in Fulton Market, the firm has proposed a 52-story residential tower at 420 North May Street, which would be the tallest structure in the neighborhood. It bought the 1.7-acre property for $34.5 million almost a year ago.
Editor’s note: This story has been updated to clarify the neighborhood of the development site.
—Quinn Donoghue