Brookfield Properties is trying once again to sell a two-building, 502-unit residential property near Grant Park in Chicago after a previous attempt last year, betting that improving market conditions will lead to a transaction.
CBRE brokers have been hired to sell Sky55, a 39-story, 411-unit tower at 1255 S. Michigan Ave., according to a brochure. It is for sale along with a connected 11-story, 91-unit senior housing building at 1251 S. Michigan.
The real estate giant previously sought a sale of the South Loop property last September through a different brokerage. A buyer never emerged as high borrowing costs and other factors slowed the dealmaking pace.
Many of the same challenges remain, but a year later there also are signs of an improving market for multifamily sales in Chicago, where a dearth of new construction in recent years has led to some of the best rent growth in the nation.
Emboldened by growing rents and some large, recently completed sales, apartment landlords have flooded the market with big towers for sale in recent months. That includes another property, the 332-unit apartment tower near Millennium Park at 73 E. Lake St., recently going back on the market after a previous attempt to sell last year.
Completed deals this year include a New York-based investor’s $170 million deal for the 375-unit Fulbrix tower in Fulton Market, the highest-priced sale in Chicago since 2023.
Other large towers on the market for sale include the 481-unit Streeter tower and the 398-unit property at 340 E. North Water St. in Streeterville and the 451-unit Left Bank tower at 300 N. Canal St.
A combined $2.4 billion has been invested in Chicago-area multifamily properties so far in 2025, according to CoStar data, compared with $3.9 billion all last year.
It’s unclear how much Brookfield, which did not immediately respond to a request for comment from CoStar News, is expecting in a sale.
Brookfield acquired the two-building property as part of its $11.4 billion takeover of Forest City Realty Trust in 2018.
The South Loop structures were completed in 2006, according to CBRE, with the larger tower 95% occupied and the smaller senior housing building fully occupied. The property includes a combined 412 parking spaces, and retail space at the base of the property is fully leased to tenants such as Go Grocer and UPS, according to the marketing materials.
For the record
The seller is represented by CBRE brokers John Jaeger, Justin Puppi and Jason Zyck.