South Loop Apartment Tower Sells for $144M

San Francisco-based FPA Multifamily bought the 47-story Paragon apartment tower in the South Loop for $144 million earlier this month, the largest Chicago apartment deal in 2024 so far, reported Crain’s.

The 500-unit building located at 1326 South Michigan Avenue was completed in 2019 by CIM Group and Chicago investor John Murphy. Newmark’s Chuck Johanns, Liz Gagliardi, and Susan Lawson brokered the transaction.

The development cost $171 million to construct, according to Murphy Real Estate Services’ website. CIM Group refinanced the property with a $148 million mortgage from Deutsche Bank in 2019. That sale marks the fourth-highest amount that a Chicago apartment building has sold for in the last year, behind the $232 million sale of 727 W. Madison Street, the $173 million sale of the North Water Apartments and the $161 million sale of the Lake Meadows apartments.

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