Big apartment news hit downtown Chicago yesterday as reports have now surfaced that Atlanta-based Investco has acquired the 398 apartment units atop the Loews Hotel at 340 E. North Water Street, which was only just finished last year.
As first reported by Crain’s, Investco paid $240.3 million for the units, which comes out to roughly $604,000 per unit, or about the third-highest price-per-unit ever paid for an apartment building in Chicago.
Not long ago, 111 W. Wacker, another of downtown Chicago’s premier newer construction apartment towers, also sold for a hefty price, which is an encouraging sign for developers of new construction apartment towers who may be on the fence about selling sometime in the near future.
Along with 340 E. North Water, Investco has also recently acquired apartment properties in Wheaton and an additional multi-family property in Evanston, but this latest move is a clear sign of trying to take advantage of downtown Chicago’s red hot market right now.
The move still comes with substantial risk, however, as about 8,000 apartment units are expected to be added to the market over the next two years, and in Streeterville alone, 974 apartments are already under construction with an additional 724 still being planned.