Jan
01

Streeterville Apartment Deal Second Largest Investment of the Year

January 01, 2013

chicago real estate apartments

Investors are closing out on their final purchases before year’s end, making this a busy time for new apartments in Chicago deals! In mid-December, Jones Lang LaSalle Inc. purchased a 60-story apartment tower in Streeterville, which was the second-largest downtown multifamily real estate purchase in 2012.

Jones Lang LaSalle paid an estimated $190 million, or about $309,000 a unit, for the Onterie Center. The center was built in 1986, and though the building is in a prime location, it is in need of renovations. Around 85 apartments in the building have already been renovated, but it would cost about $10,000 a unit, or $5 million total, to modernize the rest of the building.

So, what was the largest multifamily apartment deal in 2012? A Canadian real estate investor paid $300 million for a 48-unit apartment complex in the West Loop.

Downtown apartment deals topped nearly $1 billion in 2012, but were still short of the 2011 record of $1.4 billion. Many major investors have already maxed out their Chicago real estate investment allotment, and aren’t bidding as aggressively. However, it will be exciting to see what 2013 holds in terms of investments.

While the Loop has certainly been a hot-spot for investors, other areas of the city such as Bucktown and the Gold Coast have been home to major purchases.

The Streeterville neighborhood is just blocks away from Michigan Avenue and already home to a series of luxury high-rise apartments, so it’s no wonder investors are taking an interest.

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