Brookfield Properties is seeking a buyer for a two-property residential complex with strong occupancy rates in Chicago’s South Loop.
The real estate giant listed the Sky55 at Central Station, a 39-story luxury tower with 411 units at 1255 South Michigan Avenue, and the adjacent senior housing building, which has 91 units at 1251 South Michigan Avenue, Crain’s reported. The properties, situated just south of Grant Park, are being marketed by Berkadia’s Pete Evans and Richard Evans.
Brookfield acquired them as part of its 2018 acquisition of Forest City Realty Trust, a deal valued at $11.4 billion. Brookfield refinanced the buildings four years ago, securing a $96.6 million mortgage for Sky55 ($235,000 per unit) and a $5.7 million mortgage for the senior housing property ($62,600 per unit), according to Cook County property records.
Sky55 was built in 2006 and features 326 market-rate apartments and 85 affordable units with one- and two-bedroom layouts. It boasts an average unit size of 980 square feet and a 98 percent occupancy rate.
The senior housing building offers studio and one-bedroom units designated as affordable housing for seniors, with an average unit size of 570 square feet.
While high interest rates have recently tempered downtown Chicago’s real estate sales, the city’s consistent rent growth keeps it attractive to investors. Brookfield’s decision to list these properties now might be influenced by a potential shift in the economic climate. Federal Reserve Chair Jerome Powell has indicated that borrowing costs could decrease soon, possibly encouraging more investors to act.
Brookfield’s decision to list the properties follows the firm’s recent sale of a 68,000-square-foot retail and office building on Chicago’s Magnificent Mile for $47 million, or $691 per square foot. The buyer, local firm North American Real Estate, acquired the property at a 66 percent discount from its 2016 sale price of $140 million, or $2,058 per square foot.
Though the firm declined to comment directly on the sale, the listing signals that Brookfield is testing investor interest amid evolving market conditions.
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