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Developer Cashes in on New Downtown Apartment Tower

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Another newly built downtown apartment property has changed hands at a near-record per-unit price as Convexity Properties has sold the 398 apartments within its Streeterville tower for $240.4 million. According to Crain's, the Chicago development firm unloaded its North Water Apartments to Atlanta-based investment management giant Ivesco earlier this month. The glassy 49-story, Solomon Cordwell Buenz-designed tower at 340 E. North Water Street is also home to a 400-room hotel that was sold to New York's Loews Hotel Group for $171.7 million in February of 2015, bringing the total gross sale price of the building to $412 million. The high sale price of $604,000 per unit is not far off the $661,000 rate that Related Midwest fetched for its record-shattering sale of OneEleven in 2014. Monthly rents at the amenity-rich North Water Apartments range from $1,799 for the lowest priced studio up to $14,899 for highest priced three-bedroom unit.

Owned by trader-turned-developer Don Wilson, Convexity Properties has been busy with a number of high profile projects across Chicago. The group is responsible for the acclaimed Restoration Hardware flagship store conversion in the Three Arts Club building as well as a new Gold Coast luxury condo project opening soon at 4 E. Elm. Convexity is also working to build the new Viceroy Hotel behind the historic facade of the Cedar Hotel and is bringing Brooklyn Bowl to the Fulton Market neighborhood. The company's sale of the North Water Apartments shows that large institutional investors are still willing to shell out vast sums of money for new downtown housing stock. However, with thousands of new units still on the way, it will be interesting to see how the market reacts when supply finally catches -- and quite possibly exceeds -- demand for downtown apartments.

·Brand-new Streeterville apartments sell for $240 million [Crain's]
·First Look at Streeterville's New North Water Apartments [Curbed Chicago]
·Previous Streeterville coverage [Curbed Chicago]