South Loop Apartment Tower Sells
River North has dominated the downtown market, but in the next 18 months attention will shift south.
CHICAGO—Some investors have expressed concern about the thousands of new units coming online in the city’s downtown, but overall, the general feeling is that the sector remains solid. And buyers seem ready to place big bets. Crescent Heights just sold The Lex, a 332-unit, high-rise apartment property in Chicago’s South Loop, a neighborhood with one of the city’s most active development pipelines.
FPA Multifamily, LLC bought the property at 2138 S. Indiana Ave. for an undisclosed amount but it was free and clear of existing financing. A team from Holliday Fenoglio Fowler, LP represented the Miami-based seller, which bought the building in 2013 for $96 million.
Demand does not seem to be a problem for large property owners in the city. Downtown tenants absorbed a record-breaking 3,509 units in 2017, and another 2,560 in the first half of this year. River North has dominated the multifamily market recently, leading the way in terms of unit production as well as absorption.
And owners hope it’s the South Loop’s turn now. Developers will deliver 2,430 units there in the next 18 months, according to an analysis by KIG, compared to 1,314 in the also-vibrant West Loop.
The Lex has a lot of the attributes new city residents seek out. Located directly adjacent to the recently constructed Wintrust Arena and Marriott Marquis Hotel in the heart of the McCormick Square entertainment district, Lex tenants can walk to the lakefront in just 15 minutes. Completed in 2009, it consists of one 35-story tower and one seven-story tower with a variety of one-, two- and three-bedroom units averaging more than 900 square feet each. Units feature luxury finishes such as granite countertops, contemporary wood cabinetry, Centiva contour plank flooring, high-end appliances, marble vanities, floor-to-ceiling windows and private balconies. Community amenities include a sixth-floor rooftop terrace with a swimming pool, hot tub, outdoor grilling and poolside lounge seating; 24-hour fitness center; billiards and resident lounge; business center; dog run; and a resident-only secured parking garage. The Lex also features more than 17,000 square feet of ground-floor retail and dining space.
The HFF team included managing directors Sean Fogarty and Marty O’Connell, senior director Wick Kirby and director Kevin Girard.