River North and Gold Coast Apartment Buildings hit the Market

Two prominent apartment buildings in Chicago’s River North and Gold Coast neighborhoods hit the market.

New York-based Vista Property Group and Strategic Properties of North America each listed their respective buildings for sale, according to Crain’s. The listings were first reported in documents detailing the marketing efforts led by brokerage firm Newmark. Newmark brokers Elizabeth Gagliardi, Susan Lawson and Chuck Johanns are representing the owners for both the River North and Gold Coast listings.

Vista Property Group retained Newmark to sell 3Eleven, a 245-unit, 25-story River North property at 311 West Illinois Street. The developer is looking to exit the investment just over three years after acquiring the building from Chicago-based developer the John Buck Company for $76 million.

At the time of the 2023 acquisition, the purchase price represented more than $310,000 per unit. Built in 2018, the River North tower currently maintains a 97 percent occupancy rate, according to CoStar Group data.

Vista — which has offices in Chicago, New York and London — remains active in the Chicago market, despite the listing of its Illinois Street property. The firm is currently moving forward with the construction of a 31-story apartment tower at 370 North Morgan Street in the Fulton Market District, according to the outlet.

Lakewood, New Jersey-based Strategic Properties of North America is simultaneously marketing its 18-story, 196-unit building at 1250 North LaSalle Street called Gallery 1250, according to its website. The Gold Coast building currently reports an occupancy rate of about 95 percent, according to CoStar. The property serves as a significant test case for the firm’s condo-to-apartment deconversion strategy.

Strategic acquired the 1984-era building for about $60 million in 2020. The firm has faced a varied track record with similar deconversion projects across the Chicago area in recent years, according to the publication, with some of Strategic’s previous attempts to close deconversion deals falling through. Others have resulted in sales at prices below initial expectations. The outcome of the LaSalle Street sale will likely be viewed as a benchmark for the viability of such complex transitions.

Market analysts suggest that the consistent upward trajectory of downtown Chicago rents is a primary motivator for these listings, as rent growth provides a potential hedge against the downward pressure on valuations caused by high borrowing costs.

Neither Vista principal Hymie Mishan nor representatives from Strategic Properties of North America provided specific commentary regarding their price expectations.

— Eric Weilbacher