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.
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 GlobeSt.com 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).
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