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River North Apartments Trade for Less Than 2011 Purchase Price
San Francisco-based FPA Multifamily paid $89 million for a River North apartment tower, a price that Crain’s Chicago Business reported reflects the challenges multifamily landlords face amid rising interest rates and property taxes. FPA acquired West77, a 304-unit property at 77 W. Huron St., from Dallas-based L&B Advisors.
The 25-story building is one of just a few high-rises in downtown Chicago to change hands this year amid a shaky apartment investment market. Multifamily investors have been leery of buying downtown, worried that rising property assessments will result in big tax hikes. More recently, rising interest rates have had a chilling effect.
The West77 sale provides a clue about what investors are willing to pay for a downtown apartment tower these days, and it’s not encouraging to landlords. L&B sold the building for slightly less than the $90 million it paid in 2011, before the downtown apartment market took off.
- ◦Sale/Acquisition
