With 8,000 new apartments expected to be delivered in 2017 and 2018, downtown Chicago’s booming rental market is certainly looking strong. However, a part of the segment’s continued momentum relies on developers ability to flip completed projects and move on to new ones. According to Crain’s, no less than four major downtown developments hit the market this spring looking for buyers. As overall supply increases, potential prices may take a hit.
In March, it was revealed that the 48-story riverfront tower known as Wolf Point West was for sale. Co-developed by the Kennedy family and Hines Interest, the 509-unit glassy tower penned by bKL Architecture has been open for over a year. The same developers hope to focus their attention next door where they will team up with architect Pelli Clarke Pelli on the 62-story, 700-unit Wolf Point East tower.
A month later in April, the 29-story apartment tower dubbed The Parker Fulton Market was put up for sale. Located at the corner of Halsted and Lake in the booming West Loop area, the 227-unit development from Shapack Partners, Focus Development, and Atlantic Realty Partners was reportedly 91 percent leased at the time. It’s unclear how much the Booth Hansen-designed high-rise cost to construct, but based on a Crain’s report, the project was partly financed with a $57.8 million construction loan.
Even more recently, the Kenect apartments—a 227-unit transit-oriented development at the corner of Grand and Milwaukee in Chicago’s Fulton River District—started its search for a potential buyer. Developed by Akara Partners, the Pappageorge Haymes-designed residential and retail complex officially opened in October. Built at a cost of $72 million, Kenect is 88 percent leased with average per unit rents fetching $2,326 per month, according to a marketing flyer.
Meanwhile, the Jones Chicago is also searching for new owners. The 25-story rental tower at 220 W. Illinois from developers Gerding Edlen and Fred Latsko was completed in early 2015. Designed by Hartshorne Plunkard Architects, the Jones features 188 apartments which are reportedly 91 percent leased up and generating an average of $3,018 per unit per month.