A Streeterville condominium advanced is up for grabs, and if its destiny is just like different close by residences, it may commerce for a lot lower than what the sellers invested within the property.
Chicago-based Jupiter Realty and an affiliate of MetLife have employed JLL brokers Kevin Girard, Mark Stern, Zach Kaufman and Jason Zyck to market the 48-story, 444-unit luxurious tower at 465 North Park Drive, CoStar reported.
The condominium high-rise was accomplished in 2018. It’s unclear what the event prices had been, however a sale would come amid a tough marketplace for the Jupiter-MetLife enterprise, as rising rates of interest proceed to push property values down throughout town and threaten landlords.
The 400-unit advanced at 340 East North Water Road, subsequent door to 465 North Park, bought for $173 million in June. That’s the priciest multifamily deal to date this yr in Chicago, however considerably lower than the $240 million Invesco paid for the asset in 2016 when it final traded. Additionally in Streeterville, the 17-story constructing at 200 East Chestnut Road bought for $55 million final month, equating to a $20 million loss for the vendor.
Hiked rates of interest, a good lending local weather and total pessimism surrounding Chicago actual property have hindered multifamily offers in 2023. This yr, traders have spent $1.9 billion on multifamily property, the outlet reported, citing CoStar information. A complete of $5.6 billion was spent on such properties in 2022.
With 465 North Park 93 p.c leased, its rents vary from roughly $2,000 to $7,000 monthly, based on the condominium’s web site. Whereas JLL talked about the supply of “free and clear financing” in its advertising supplies, it’s unclear what kind of financing is being provided as a part of the sale.
The prospect of vendor financing attracts some patrons in at present’s rising rate of interest market, and may enhance the values of offers.
— Quinn Donoghue