London-based Legal & General is eyeing a major acquisition in Chicago’s West Loop.
The U.K. financial services firm is in advanced talks to acquire the 350-unit Arkadia West Loop apartment tower at 765 West Adams Street, CoStar reported, citing people familiar with the matter. The listing is being managed by Newmark brokers Liz Gagliardi, Chuck Johanns, Susan Lawson, Bishop Polizzotto and Joe Raucci.
If completed, the Arkadia West Loop acquisition would provide Legal & General with a flagship property in one of Chicago’s most sought-after neighborhoods.
The potential deal follows the firm’s recent $200 million commitment to a value-add multifamily fund in partnership with Boston-based Taurus Investment Holdings. The collaboration is designed to support acquisitions across the country, addressing growing investor interest in U.S. real estate opportunities.
The 35-story Arkadia West Loop is situated on the northern edge of Greektown and south of Fulton Market. It was completed in 2015 by PGIM in collaboration with Chicago-based White Oak Realty Partners. PGIM has since acquired full ownership of the apartment tower, having bought out White Oak’s stake.
Legal & General’s interest comes amid a period of correction in Chicago’s real estate market. Rising borrowing costs and broader market uncertainty have driven down the valuations of many large apartment properties.
Blackstone’s 227-unit Parker Fulton Market tower, for instance, changed hands for $93.3 million earlier this year, a substantial drop from its $111.4 million sale price in 2017. Additionally, JLL Income Property Trust recently sold its 28-story apartment building at 180 North Jefferson Street for $76.3 million, 20 percent less than the $96.4 million it paid for the building in 2016.
The area’s multifamily market is experiencing strong demand despite these challenges, with developers like Sterling Bay shifting its office plans at 350 North Morgan Street to a 39-story multifamily project.
— Andrew Terrell
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