Draper & Kramer Purchases River North Apartment Tower in 1031 Exchange Deal
The property was purchased by Chicago-based Draper and Kramer through a 1031 exchange following the firm’s sale of Prairie Shores, a 1,675-unit, multi-building apartment community in Chicago’s Bronzeville neighborhood.
CHICAGO—Draper and Kramer, Inc. reports it has acquired the HUBBARD221, a 195-unit luxury apartment tower in Chicago’s River North neighborhood.
The property was purchased by Chicago-based Draper and Kramer through a 1031 exchange following the firm’s sale of Prairie Shores, a 1,675-unit, multi-building apartment community in Chicago’s Bronzeville neighborhood. Terms of the HUBBARD221 purchase were not disclosed.
John Jaeger, Dan Cohen and Justin Puppi of CBRE represented the seller. Draper and Kramer was represented internally in the transaction.
Farpoint Development and Golub & Company acquired the 1,675-unit Prairie Shores apartment complex from Draper and Kramer for approximately $177 million, according to a report in the Real Deal.
Located at 221 W. Hubbard St., the 23-story HUBBARD221property features a mix of studio, one-, two- and three-bedroom units, including a selection of penthouse residences, ranging from 467 square feet to 1,511 square feet.
“As a company with a long and successful track record of owning and operating in Chicago, we remain bullish on the local multifamily market and its ability to deliver attractive risk-adjusted returns in the months and years ahead,” said Blas Puzon, chief investment officer with Chicago-based Draper and Kramer. “In terms of what constitutes a core investment under Draper and Kramer’s current acquisition strategy, HUBBARD221 checked all the boxes. It’s a high-quality asset that will stand the test of time thanks to its ability to deliver the live-work-play lifestyle that so many renters seek.”
Built in 2017, HUBBARD221 offers modern, open floor plans and luxury finishes throughout individual apartments, such as gray-tone plank flooring; gourmet kitchens with contemporary cabinetry, quartz countertops, porcelain backsplashes and stainless steel appliances; and spa-like baths with floating vanities and Kohler fixtures. All units have nine-foot or higher ceilings, floor-to-ceiling windows, custom closets and in-unit washer and dryer. Select apartments also offer a private balcony or terrace, built-in desk and walk-in closets.
Shared amenities at HUBBARD221 include a resident lounge; dedicated co-working space; chef’s kitchen and adjacent party room; fitness center, yoga studio and meditation lounge; and an expansive rooftop terrace with grilling stations, a fire pit, cabanas, a pool and hot tub. The tower’s lower levels feature a dog run, pet spa, bike storage and bike repair station.
Draper and Kramer, one of the largest property management firms in Chicago, will operate HUBBARD221. The firm’s portfolio totals more than 8,000 rental units across Chicago, St. Louis, Dallas and San Antonio.