Waterton Buys Chicago River North’s Flair Tower for $85M

Chicago-based multifamily investment firm Waterton is expanding locally with the $85 million acquisition of a 197-unit apartment tower in the River North neighborhood.

The Chicago-based multifamily investor paid $85 million for the 197-unit Flair Tower at 222 West Erie Street in River North, marking its second large acquisition in its hometown in roughly seven months. The 26-story building traded last week, with CBRE brokers John Jaeger, Justin Puppi, Jason Zyck and Pete Marino representing the seller. The sale price matches the exact amount Boston-based GID Investment Advisors paid for the tower in 2011, according to CoStar, which first reported the transaction.

This follows the firm’s $89.5 million purchase of The Mason, a 263-unit tower in Fulton Market, which closed last September. Flair Tower was completed in 2010 and was 97 percent leased at the time it was brought to market last summer, according to the outlet. The property includes a fitness center, a refreshed lobby, and an outdoor pool deck featuring views of the Chicago skyline.

Records indicate the seller had previously refinanced the tower in 2016 with a loan totaling about $60 million. The sale occurs as the downtown Chicago apartment market navigates a period of conflicting performance metrics, according to the publication. While the city continues to lead major national markets in rent growth, many recent sales have occurred at discounts to previous valuations.

Investors are currently weighing the benefits of historically low new supply against the challenges of rising borrowing costs and local property tax concerns. New unit development has slowed significantly in recent years due to elevated construction and financing expenses, according to the publication.

Despite these hurdles, Chicago-area multifamily sales volume reached $5.3 billion last year, a notable increase from the $4 billion annual average seen in the preceding two years, according to the outlet. Other firms, such as Cedar Street, have also been active, spending over $222 million on recently constructed buildings since mid-2025.

Waterton’s latest purchase is currently the second-highest price paid for a Chicago apartment building in early 2026. It trails only the $126.1 million acquisition of the 332-unit tower at 73 East Lake Street that closed in January.

Waterton remains one of the most prominent players in the Chicago multifamily sector. Its local holdings include the 2,346-unit Presidential Towers complex, indicating a long-term commitment to the city’s high-density urban core.

— Eric Weilbacher