Another apartment building hits the market in Chicago as transactions pick up pace.
Local developers Anthony Rossi and Tom Moran have put their 332-unit building at East Lake 73 up for sale. Cook County records show the couple took out a $76 million construction loan in 2019 to build the 42-story tower, though they likely invested much more to complete the project.
Marketing materials highlight the building’s proximity to Michigan Avenue, Millennium Park and Google’s ongoing redevelopment of the Thompson Center. CBRE’s John Jaeger, Justin Puppi, Jason Zyck and Danny Zeboski are handling the deal.
Although the asking price has not been publicly disclosed, the offer comes at a time when strong rental growth is attracting buyers, but high interest rates are cutting into sellers’ profits. A recent analysis by The only true found that about half of the high-end apartment complexes sold in the first half of the year resulted in a profit for the sellers. Four sales resulted in a loss for the seller and four sales were unknown because sales prices or credit information had not yet been recorded.
The same CBRE team also recently closed a $78 million deal in Oak Park. The transaction ended in a loss for sellers Goldman Sachs and Magnolia Capital, which bought the 270-unit complex for $103 million in 2018. Meanwhile, buyer FPA Multifamily was on a shopping spree in the Chicago area, taking advantage of potential discounts.
In March, a partner in the San Francisco-based investment firm paid $144 million for the 500-unit Paragon Chicago Tower at 1326 South Michigan Avenue in the South Loop, for a total of about $288,000 per unit.
Also in July, the company paid $60 million for the 270-unit Emerson Apartments in Oak Park and $102 million, or about $159,000 per unit, for the 642-unit Reserve at Hoffman Estates.
At 73 East Lake, the average rent is $3,054 a month, or $3.41 per square foot, and the building is about 93 percent occupied, according to marketing materials.
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