By Gabriel Circiog, Associate Editor
An affiliate of Dallas-based L&B Realty Advisors LLP has agreed to purchase the luxury Parc Huron apartment tower for $110 million, Chicagorealestatedaily.com reports. The 221-unit building, located at 469 W. Huron Street in the River North neighborhood of Chicago, will be sold by local developers Tony Rossi, Thomas Moran and their financial partner J.P. Morgan Asset Management.
Rossi confirmed the sale price of around $498,000 per unit—one of the highest per-unit rates ever paid for a downtown apartment tower—but declined to confirm the buyer. Finalized in 2010, the Parc Huron is among the most expensive apartment buildings in Chicago, with rents reaching $4,080 for three bedrooms. The building is currently 98 percent leased, according to Mr. Rossi, president of RMK Management Corp.
The sale of the Parc Huron will generate a considerable return for a project that was initiated in December 2008, right in the middle of the financial crisis. The joint venture borrowed $54 million and injected $30 million of equity to finance the development. Mr. Rossi stated the actual cost of the project was below $84 million, which implies the developers almost doubled their $30 million equity investment in just a little over three years. The sale of the Parc Huron was brokered by Moran & Co, led by Mr. Moran.
The two developers are currently working on their next downtown project—a $116-million, 322-unit project on Lake Street in the East Loop.
Chicago-based research company Appraisal Research Counselors confirmed that downtown apartments are the most sought property type by real estate investors. Last year, seventeen major downtown apartment buildings were sold for a record $1.42 billion, a considerable increase compared with $343 million in 2010. Luxury downtown buildings also saw a 10.1 percent gain in net rents.
Photo Credits: www.rmk.com