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.
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