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Loop Apartments Trade at 20% Markdown on Development Costs
Oregon-based Green Cities has acquired Lake & Wells, a 329-unit rental apartment building at 210 N. Wells St. in Chicago’s Loop, from a joint venture between Chicago-based developer Jay Javors and the real estate investment subsidiary of the National Electrical Benefit Fund.
Although the sale price wasn’t disclosed, Crain’s Chicago Business reported it at $98 million, or 20% less than the $123 million that Javors and the NEBF invested in the high-rise when they developed it in 2008. Green Cities also took over the ground lease on the land underneath the property.
“This property represents one of the most significant value-add opportunities in Chicago in a high barrier-to-entry market,” John Jaeger, EVP in CBRE’s Chicago office, said in a statement
While the downtown apartment market remains strong, the jump in interest rates last year cast a chill over the entire commercial real estate sector, driving up borrowing costs and lowering the purchasing power of investors, reported Crain’s.
- ◦Sale/Acquisition
