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Luxury Apartment Developers Test Downtown Chicago’s Investment Sales Market

The developers of two downtown luxury apartment buildings have engaged Newmark to sell the properties, testing the market amid wobbly investor demand for large multifamily properties in the city, reported Crain’s Chicago Business. D2 Realty and Wood Partners’ 346-unit Alta Grand Central and LG Development’s 166-unit Jax, both of which opened in 2020, are seeking buyers. 

The Jax is expected to attract bids exceeding $50 million, but it’s unclear how much Alta Grand Central might sell for, Crain’s reported.  

Amid high occupancies and rising rents, it should be an opportune time to sell an apartment building, reported Crain’s. However, the jump in interest rates last year has undermined the market, driving borrowing costs up and property values down.  

“That’s the dichotomy of the market,” Daniel Haughney, CIO of LG, told Crain’s. “The underlying fundamentals are as strong as ever, and the capital markets are as weak as we’ve seen them.” 

Pictured: Alta Grand Central.

Meet industry experts at the upcoming Connect Midwest: Multifamily and Adaptive Reuse Trends, which takes place June 13, 2023 at the W Chicago City Center Hotel. Click here for more information and to register. 


Inside The Story

LG Development

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition
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