South Loop Luxury High-Rise Hits the Market

CHICAGO-One of the first multifamily developments to sprout in the South Loop, a 330-unit luxury building at 2 E. 8th St., is for sale. Holliday Fenoglio Fowler, L.P. has won the assignment from Everest Partners, which issued a request for proposals that drew serious competition from Moran & Co., CB Richard Ellis and Marcus & Millichap.

So far, more than 100 signed confidentiality agreements have been sent back from prospects requesting information packages on the 28-story building on State Street, reports senior managing director Matthew Lawton, who is teaming with Chicago colleague John Simon and director David Nachison of Holliday Fenoglio Fowler’s Washington, DC office. Conventional multifamily operators, student housing operators and condominium converters are represented among the prospective purchasers, Lawton notes.

While Holliday Fenoglio Fowler has not set a price on the building, Lawton notes a comparable property Downtown sold at $159,000 per unit, which would equate to more than $50 million for 2 E. 8th St. However, the September sale did not have retail space or enclosed parking, two attributes Everest Partners’ asset has in addition to units with views of the Chicago skyline and Lake Michigan, an indoor pool and 24-hour doorman. Tax records indicate there is nearly 62,000 sf of retail space.

Simon notes the South Loop has a 60% increase in population in the last decade, as residential redevelopment arrived, particularly with Central Station across Roosevelt Road. One reason for the population growth is the number of colleges and universities in the area, which will lack student housing even after the “superdorm” serving Columbia College, DePaul and Roosevelt universities is built three blocks north of 2 E. 8th St.

Everest got in well before the boom, building 2 E. 8th St. in 1985.

“Everest is selling because they think the timing is right due to demand in the marketplace for product like this and their personal goals and objectives,” Lawton tells GlobeSt.com.