A Loop apartment building that started construction in 2019 traded hands this week, after riding out the uncertainty of the pandemic.
AmTrust RE bought the 213-unit Parkline Chicago at 60 East Randolph, according to a news release. A purchase price has not yet been recorded. CBRE’s John Jaeger, Justin Puppi, Jason Zyck brokered the transaction.
Chicago developer Moceri + Roszak took out a $69 million construction mortgage in 2019 and completed the project in 2021, and it was refinanced for $80 million.
The property’s proximity to Millenium Park, Lake Michigan and an array of public transportation options were AmTrust’s primary motivators in the purchase.
Moceri + Roszak had to navigate a difficult market over the lifespan of the project as interest rates and construction costs rose and the Loop suffered from a decreased population of office workers.
The multifamily market in Chicago, has remained a relative bright spot, supporting stronger and more sustained rent growth than most other major metropolitan areas in the U.S.
As interest rates begin to cool and interest in Chicago’s multifamily sector continues to percolate, more listings are hitting the market and changing hands.
Along with its purchase of 60 East Randolph, AmTrust is doubling down on its investments in the Loop.
The firm is renovating office properties at 1 East Wacker and 33 North Dearborn and will participate in the city’s LaSalle Street Reimagined incentive program to convert a portion of 135 South LaSalle to affordable and market-rate housing.
A few blocks west of 60 East Randolph, developers Mike Reschke and Quintin Primo are overhauling The Thompson Center to serve as Google’s Chicago headquarters.
“We’re anticipating an influx of tech professionals to the East Loop over the next few years,” said AmTrust President Jonathan Bennett.
Real estate insiders have said the Thompson Center renovation should drive demand for multifamily properties on the northern half of the Loop and River North.
In the meantime, however, high vacancy rates still plague the Loop’s office outlook and multifamily transactions have produced mixed results for sellers in the first half of the year.
Editor’s note: this post has been updated to correct the name of the company that purchased 60 East Randolph.
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