Blitzlake Partners Sells Development in hot Chicago Submarket

Randolph Street Realty Capital has expanded its multifamily portfolio with a 140-unit apartment building in the city’s Lakeview neighborhood.

The Chicago-based company, led by co-founders Robert Tanaka and Jonathan Saliterman, purchased the Panorama Apartments from Chicago developer Blitzlake Partners for a little over $40 million, Crain’s reported. The deal breaks down to about $258,000 per unit.

Essex Realty Group’s Rick Ofman and Jordan Gottlieb facilitated the transaction, with Ofman representing Blitzlake Partners and Gottlieb representing Randolph Street Realty Capital.

The building, at 918 West School Street, offers a range of amenities, including a theater, indoor and outdoor lounges and a fitness center.

Despite being delivered during the height of the COVID-19 pandemic,

The apartments were delivered in 2020, at the height of the pandemic, but leased up quickly. The eight-story building is 99 percent occupied with an average asking rent of $2,393 per month, or $3.49 per square foot, according to CoStar.

Economic factors, such as interest rate hikes, have created headwinds for large real estate transactions, but high demand for rental units in neighborhoods like Lakeview has provided resilience for multifamily landlords.

The area benefits from limited development, with just 310 apartment units under construction in the North Lakefront submarket this quarter. This limited supply has helped sustain high occupancy rates and strong rental demand, particularly for well-located, high-performing properties.

The purchase adds to Randolph’s multifamily holdings, which includes the 144-unit Kingston Pointe property in Des Plaines, as well as apartment complexes in Arizona, Washington and Minnesota.

Blitzlake Partners developed the Panorama Apartments after acquiring the 23,000-square-foot parcel in 2017 for $7 million, or about $304 per square foot. The project was financed with a $33 million construction loan from CIBC Bank USA in 2019, followed by a $38 million refinancing by Republic Bank in 2021.

Blitzlake remains active in the Lakeview area. The company, led by CEO David Blitz, is also developing 90 apartments with a Target store at 3200 North Clark Street in Lakeview.

— Andrew Terrell