Noah Properties Tests Market in Listing Chicago Apartments

Noah Properties is dipping a toe in the 2025 multifamily market.

The Chicago-based developer, led by Bart Przyjemski, recently listed the North Oak Lofts, a rental complex in the Galewood neighborhood on Chicago’s Northwest side.

CBRE’s John Jaeger, Justin Puppi, Jason Zyck and Danny Zebowski will represent the seller.

Marketing materials describe the 237-unit property as a “luxury workforce apartment community.” Units range from two to four bedrooms and start at $2,500 a month, according to the Noah Properties’ website.

Przyjemski’s firm bought the land for the development in 2014. A series of construction mortgages tied to the property show that Noah Properties developed the complex, which consists of over 30 smallscale multiunit buildings, in several phases.

Although it’s unclear how much the firm invested in total, it took out an $87 million loan against the property in 2019 and a $46 million loan in 2021.

Throughout last year, a tight lending environment and high interest rates contributed to lower-than-desired prices for some sellers in Chicago. And some buyers flocked to the suburbs instead, in pursuit of a submarket that is perceived as more business and tax friendly.

To the east of the North Oak Lofts, JLL Income Property Trust recently sold its 28-story West Loop apartment building, at 180 North Jefferson Street, for $76.3 million. The price was 20 percent less than the $96.4 million it paid for the building in 2016. The 274-unit building sold for $278,000 per unit.

To the west, California-based buyer FPA multifamily bought the 270-unit Vantage Oak Park (rebranded to ReNew Oak Park) for $78.2 million, or about $290,000 per unit. A joint venture of Goldman Sachs and Magnolia Capital bought the building for $381,000 per unit in 2018

Interest rates have also caused problems for a different property in Noah Properties’ portfolio.

The Avondale Luxury Residences was watchlisted by its lender last year due to a low debt service coverage ratio, meaning the property’s revenues were not covering its debt payments. The loan, which was sold off on the CMBS market, was set to expire last year, but an extension is under review, according to CMBS tracking system MorningStar Credit.

While apartments have been trading for less than their prior sale prices in recent months, there are signs of momentum in the market.

Chicago was among the 10 most sought-after cities for renters last year, according to RentCafe, which compiled the rankings by tracking engagement with rental listings.

Chicago development firm Lipe Property Company is also testing the 2025 market, recently listing its 97-unit River West apartment building, Nevele22.