JP Morgan Asset Management Sells Fulton Market Apartments

Lincoln Yards isn’t the only place J.P. Morgan Asset Management is bailing in Chicago.

The New York-based investor just sold a residential development in Fulton Market to a group that includes Centaur Capital Partners, the family office of John Schreiber, a co-founder of Blackstone Real Estate Advisors, CoStar reported.

Schreiber cuts a wide swath in business and philanthropy circles in Chicago. He and his wife, Kathleen, have donated more than $100 million to his alma mater, Loyola University, and $25 million to Lurie Children’s Hospital.

A price has not been publicly disclosed in the deal for the 29-story, 227-unit Parker Fulton Market at 730 West Couch Place, but the number is likely somewhere between those two gifts, part of the trend toward discounts in Chicago’s multifamily market. The relative bargains come as post-pandemic hikes in interest rates have offset relative strength on rents in Chicago.

J.P. Morgan Asset Management and Atlantic Residential paid $111 million for the Fulton Market tower in late 2017, almost $489,000 per unit.

JLL marketing materials cited an average lease rate of $3.67 per square foot for the property, and said it was 98 percent leased when it went on the market this spring.

J.P. Morgan Asset Management appears to be in general retreat in Chicago. It recently sold a 198-unit apartment on Lake Shore Drive to Miami-based developer Crescent Heights for $80 million, a trim of about 40 percent from what it paid in 2016.

J.P. Morgan Asset Management is also exiting its role as a backer of Sterling Bay’s long-delayed $6 billion Lincoln Yards mixed-use project on the North Side.

J.P. Morgan, Atlanta-based Atlantic Residential and Centaur did not respond to the outlet’s requests to comment.