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Akara Partners, CA Ventures try again to sell River West apartment complex

At current market rates, the 227-unit Kenect complex could fetch up to $114M

From left: CA Ventures CEO Tom Scott, the Kenect apartment at 504 North Green Street, and Akara Partners founder Rajen Shastri (Credit: CA Ventures and Akara Partners)
From left: CA Ventures CEO Tom Scott, the Kenect apartment at 504 North Green Street, and Akara Partners founder Rajen Shastri (Credit: CA Ventures and Akara Partners)

Akara Partners and CA Ventures are once again trying to sell the 227-unit Kenect apartment complex in River West, a year after pulling it off the market.

The Chicago-based firms developed the 14-story building at 504 North Green Street in 2016 with Goldman Sachs and then tried to sell it in 2017, according to Crain’s. Last last year the duo pulled it off the market when they couldn’t get their price.

The project cost about $72 million to build, and was financed with a $43 million construction loan. That loan has been increased to $45.3 million, according to property records.

Downtown luxury apartment buildings completed in the past few years have sold recently for roughly $400,000 to $500,000 per unit, according to Crain’s, which would value Kenect at some $90 million to $114 million.

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Kenect was 92.5 percent occupied as of mid-June, according to a CBRE marketing brochure.

With some Downtown rents hitting record highs and vacancy rates holding steady, a number of landlords are looking to sell their rental properties.

Magellan Development and JPMorgan Asset Management are looking to sell the apartment portion of the Aqua tower, Crescent Heights is in the middle of a rental tower sell-off and JDL Development wants to cash in on a River North property, among others. [Crain’s] — John O’Brien

 

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