CHICAGO-Waterton Associates has purchased the 36-story One East Delaware Apartments from Archstone-Smith in the city's Gold Coast neighborhood, at the corner of North State Street and East Delaware Street. The property also includes almost 40,000 sf of retail space on six floors and a seven-story parking garage with 398 spaces.
Waterton had also acquired the 399-unit River North Park Apartments in May from Archstone. Mark Stern, a Waterton vice president who worked on the acquisition, says he can't divulge the purchase price of either property. However, he tells GlobeSt.com that the purchase price wasn't close to the $90 million reported in other publications, nor was the River North purchase close to $60 million as reported.
The 204,185-sf One East Delaware property, currently 96% occupied, was financed through Waterton Residential Property Fund IX, a $330-million discretionary investment fun targeting multifamily property. The company invested a total of $450 million for the fund in 2006, and company officials say the firm is seeking additional investment opportunities in most major markets nationwide.
Stern says the company is going to invest roughly $4,000 per unit for interior renovations, including upgraded kitchen and bath cabinets, flooring, countertops and a new appliance package, as well as modernization of the building's entrance foyer, common areas and hallways. "We really like the Downtown rental fundamentals," Stern says. "There's been a reduction in supply, about 6,000 units, from rental to condominium. We really think the Downtown market is poised for great rent growth in the near-long term."
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