According to a Hong Kong-based news source, Lakeshore East’s upcoming super-tall Vista Tower has sold $200 million worth of condominiums since March of this year. The roughly $1 billion Jeanne Gang-designed tower is a joint business venture between China’s Dalian Wanda Group and Chicago-based Magellan Development Group and will contain 406 luxury residences and a five star 191-key Wanda branded hotel.
Magellan executive vice president Sean Linnane tells the South China Morning Post that while a number of Vista Tower buyers are Chicago locals, his firm is marketing the nearly 1,200-foot building in Hong Kong, Singapore and the Middle East. Meanwhile co-developer Wanda is responsible for selling the project on the Chinese mainland in high-profile markets such as Beijing and Shanghai.
The report also cited an average price per square foot of $1,000 for Chicago’s upcoming combination hotel/condominium super-tall. While steep, this figure still amounts to less than half the price a similar development would fetch in a coastal market like New York and explains why foreign investors are finding such value in the booming Midwest city.
Last year was a record-breaking period for foreign real estate investment in Chicago which saw $3.27 billion of new overseas capital flow into the Windy City — eclipsing a previous record of $2.18 billion set in 2013. While concerns over depressed energy prices and a Chinese economic slowdown caused some investors to initially dial back their expectations for 2016, the rapid sales of units in the Vista Tower is an encouraging sign. The project is expected to break ground as early as this month with delivery slated for 2020.
- Dalian Wanda’s joint venture luxury residential project in Chicago has sold US$200m since March [South China Morning Post]
- 2015 Marks Record Year for Foreign Investment in Chicago Real Estate [Curbed Chicago]