CHICAGO—As reported in GlobeSt.com last week, Georgetown Co. just completed the acquisition of K2, the 34-story, 496-unit apartment tower at 365 N. Halsted St. for $215 million, another sign that the Fulton River District has appeared on the national radar. And Adam Flatto, chief executive officer of Georgetown, tells GlobeSt.com that the New York-based firm considers the property, completed in 2013, “a long-term investment; we're thinking in terms of decades.”
In addition to the “incredible growth occurring in the West Loop,” he adds, Georgetown was attracted to the building due to the type of units that Fifield Cos. and Wood Partners developed for K2. Besides being, in terms of amenities, top-of-the-line product, the new units are modestly-sized, not family-sized, precisely the kind favored by millennials who want to make their homes near the CBD and its available jobs. “That's a perfect fit for us.”
The economic and social forces drawing so many younger workers into the city will last for a long time, Flatto believes. And even if the market does change in significant ways over the next couple of decades, Georgetown remains committed to “always improving and making relevant upgrades to the properties we own.”
Flatto has a lot of praise for K2's development team, and in the short term does not anticipate making many changes to the fully-leased building. However, Georgetown does want to put in a few tweaks. He calls K2's dog park, for example, “a tremendous asset for the residents,” but still wants to upgrade it. “We would like to see it become the best facility of its kind in Chicago.”
Georgetown's new investment sits in the midst of thousands of new apartment homes. Fifield has transformed this corner of the city by also developing the nearby Alta at K Station, with 848 units; and Left Bank at K Station, with 451 units. “As a New Yorker, I can relate to the changes that are going on there,” Flatto says. “We think it's a fantastic thing for the city of Chicago.”
However, he also believes that that the neighborhood's unique history and character, specifically its industrial past, should also be preserved and not get swept away by the massive influx of new residents. “There are a lot of very thoughtful voices on this in the community.”
Flatto adds that Georgetown is very comfortable operating in the Midwest, and especially comfortable in Chicago. “It's likely that we will purchase additional properties in the coming months.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
