Built in 2019 by Chicago-based Murphy Development and Los Angeles-based CIM Group, the developers refinanced the building shortly after its completion with a $ 150 million loan from Deutsche. Bank, which enabled them to withdraw nearly $ 60 million from the project. Now they are trying to sell, presumably in order to take advantage of the popular apartment market.
“Our strategy has always been to build, stabilize and sell,” said John Murphy, president and CEO of Murphy Development. “Even during the pandemic, the property showed great strength and continued to increase its occupancy rate. It is a high quality trophy.
Murphy declined to disclose what the company is asking for the building, but industry newsletter Green Street Real Estate Alert expects it to be valued at around $ 200 million, or 400,000. $ per unit. Murphy Development also owns properties at Fulton Market and Skokie.
Real Estate Alert first reported the Paragon listing and the Elevate Lincoln Park listings and a building at 633 W. North Ave.
Elevate Lincoln Park, a 191-unit building located at 930 W. Altgeld St., is estimated to be worth about $ 135 million, or $ 707,000 per unit, according to Green Street. It was built in 2018 by Baker Development and also has luxury amenities like a swimming pool, sky lounges and a 24-hour fitness center, a JLL listing shows. Baker Development President Warren Baker did not respond to a request for comment.
A third building of 261 units completed last year at 633 W. North Ave. went on sale this month. Green Street estimates its price to be around $ 160 million. Mark Stern and Kevin Girard, Jones Lang LaSalle brokers representing the three properties, did not respond to requests for comment.
After tenants fled the downtown apartment scene at the start of the pandemic, new data shows they have started to return. Second quarter figures from Integra Realty Resources show that downtown occupancy and rents have reached all-time highs.
The decrease in the number of tenants at the start of the pandemic has in turn affected apartment sales, as very few have sold since the start of COVID-19. But as the market recovers and occupancy rates rise, the trio of luxury skyscrapers for sale, which Green Street estimates have a combined value of around $ 500 million, will test the investor interest in working-class neighborhoods in Chicago.
The three buildings join other high-rise buildings that have hit the market in recent months, including the Bernardin, a 171-unit building at 747 N. Wabash Ave., and the Shoreham, a 584-unit tower in the Lakeshore East development.
Integra data shows net rents for downtown’s most expensive Class A buildings hit $ 3.41 per square foot in the second quarter, surpassing their all-time high of $ 3.31 two years earlier.
The Paragon is 94% occupied, with rent for a studio starting at around $ 2,073, or $ 3.37 per square foot. Elevate Lincoln Park is 98% occupied, with studio rent starting at $ 1,939 per month, or $ 3.71 per square foot, according to JLL listings.