Condo deconversion expert Strategic Properties just picked up a large Streeterville apartment tower.
The Lakewood, New Jersey-based investor bought Cityfront Place from DWS, a unit of Deutsche Bank, according to Crain’s.
It’s not clear what Strategic paid for the 480-unit property at 400 N. McClurg Court, though the outlet speculated it was well below the $160 million figure DWS was seeking. The deal, revealed to tenants last week, was agreed to before the coronavirus pandemic took hold, though Strategic may have used the virus’ impact to negotiate a lower price to close. It may be one of the last big deals for a while, especially in the multifamily space.
Wary of a prolonged economic downturn, many property investors across the country are pulling out of deals to shore up liquidity and pay their mortgages. Locally, tenants of apartment buildings across the city may be unable to pay rents, making valuations of multifamily properties extremely difficult to determine.
DWS paid $107 million for the property in 2011 and pitched the sale as a “value-add” investment, according to Crain’s. Rents range between $1,715 for a studio and $3,216 a month for a two-bedroom apartment, according to CoStar data.
Strategic paid $44 million to deconvert a condo tower at 21 E. Chestnut Street and executed two prior deconversions in the city. [Crain’s] — James Kleimann