The owners of a 304-unit luxury apartment tower in Chicago’s Gold Coast are looking to sell in a deal that could test the strength of a market that has shown signs of thawing.
JLL brokers have been hired to seek a sale of One East Delaware, a 37-story tower that hasn’t changed hands in nearly a decade, according to a marketing brochure.
Chicago-based Golub & Co. and Boston’s Alcion Ventures have owned the tower between State and Rush streets since paying $146 million in 2016, and they refinanced it with a $113.5 million loan from Heitman in 2021, according to Cook County property records.
The volume of multifamily sales has slowed locally and nationally in recent years because of higher interest rates and other economic factors, but there have been some hopeful signs of late.
That includes the recent $170 million sale of the 375-unit Fulbrix tower in Fulton Market, the highest-priced multifamily transaction in Chicago since 2023. In other deals within the past six months in the city, the 191-unit Elevate Lincoln Park building and the 350-unit Arkadia West Loop sold for more than $113 million each.
It’s unclear how much Golub and Alcion expect in a sale of the tower at 1 E. Delaware Place. The firms declined to comment on a price but expressed optimism.
Golub and Alcion “remain confident in the long-term strength of the Chicago multifamily market, and the strategic listing of One East Delaware reflects that outlook,” the sellers said in a statement to CoStar News. “This is a high-performing asset in one of the city’s most desirable neighborhoods, and we see this as the right time to bring such a premier offering to market. One East Delaware represents the kind of investment opportunity that continues to draw interest to Chicago.”
Golub could look to stay in the deal with a new investment partner, as it recently did with the 280-unit Chestnut Place tower across the street from One East Delaware. Late last year, Los Angeles-based CIM Group sold the tower to San Francisco-based Farallon Capital for $85 million, with Golub remaining an investor as part of the recapitalization.
One East Delaware is more than 98% leased, with asking rents of $3,143 per unit and $4.10 per square foot, according to CoStar data.
The property includes 36,977 square feet of retail and 385 garage spaces, according to JLL.
JLL frames the investment as an opportunity to add value by upgrading units and pushing up rents. Completed in 1989, the property has seen 16% rent increases on move-outs and 9% growth on renewals, according to the brochure.
For the record
JLL brokers Mark Stern, Kevin Girard, Zach Kaufman and Colleen Watson are representing the sellers.