R.I.G. Capital has paid $167 million to acquire The Pavilion, a multifamily building complex located in the O'Hare neighborhood of Chicago.
Eastern Union, which arranged a $125.25 million loan with a 30-year structure to back the purchase, said the deal is believed to be the largest apartment sale to take place in Chicago this year so far.
Arbor Realty Trust supplied the loan, which was carried out through agency execution led by the lender's Stephen York. Senior Managing Director Michael Muller led the efforts on behalf of Eastern Union, with help from Mike Orlik, commercial loan analyst at the firm.
The sales price represents a 75-percent loan-to-cost ratio.
"With our knowledge of the market, we were able to provide our client competitive terms and seamless execution despite a volatile environment," Muller said in a statement.
"We wish our client much success with this asset."
This represents the first trade involving The Pavilion in decades, according to Muller. The five-building asset, which was originally built between 1968 and 1972, takes up a total of 1.15 million square feet and consists of 1,115 multifamily units. Amenities at the site that's positioned at 5441 N. East River Road include a fitness center, spa, pool, sauna, barbecue area, a club building and 1,367 parking spots.
The property was 96 percent leased when the sale closed.
In 2026, Chicago continues to benefit from constrained supply, according to a recent market report from Marcus & Millichap. Overall deliveries have fallen below 4,000 units for the first time since 2012, with the vacancy rate inside the central business district at the lowest point since 2006.
Marcus & Millichap projects that rents in the Windy City will rise by 2.9 percent in 2026 to $2,300 per month. Although that's slower than the 50 percent boom seen from 2020 to 2025 — it still represents expansion.
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