Green Cities Buys Chicago Apartment Asset Amid High Demand

Green Cities has expanded its portfolio with the acquisition of a West Loop apartment tower for $94 million.

The Portland, Oregon-based investor purchased Catalyst, a 223-unit building at 123 North Desplaines Street, CoStar News reported. Naperville-based Marquette Companies and Deutsche Bank affiliate DWS Group sold the 20-story building earlier this month for about $421,500 per unit. CBRE’s John Jaeger, Justin Puppi and Jason Zyck represented the sellers.

The deal marks Green Cities’ second major downtown Chicago purchase in recent years. The firm bought the 329-unit Lake & Wells building, at 210 North Wells Street, for $98 million ($298,000 per unit) in 2023. The sellers were Chicago developer Jay Javors and a subsidiary of the National Electrical Benefit Fund.

The Desplaines Street building is 94 percent occupied, according to CoStar Group. Rents range from $2,200 to $5,900 per month, or $3.70 to $3.76 per square foot.

The property was one of the early developments in the West Loop’s residential expansion. Marquette took over the building in 2012, before a surge of construction in the neighborhood.

The firm has since overseen multiple developments in the area, including Parq Fulton, a 278-unit rental property at 1400 West Randolph Street, and Evo Union Park, a 242-unit building at 1454 West Randolph Street.

Demand for Class A apartments is strong in the downtown market, as construction is limited. Fewer than 300 new units are expected to be completed this year, marking one of the lowest supply increases in 20 years.

With few large-scale projects underway, landlords of premium apartments are benefiting from rising rents. The average rent for upscale units reached $3.60 per square foot in the fourth quarter, reflecting a 2.56 percent increase from the same period in 2023, according to Integra Realty Resources.

— Andrew Terrell