A year after putting a 332-unit apartment tower near Millennium Park up for sale, a local developer is putting it back on the market amid a wave of multifamily listings in downtown Chicago.
CBRE brokers have been hired to sell the 42-story tower at 73 E. Lake St., according to a brochure.
It is hitting the market a year after the real estate firm that completed the tower in 2014, M&R Development, previously made it available for sale. It never found a buyer amid high borrowing costs and other economic challenges.
A year later, many of the same challenges remain, but there also are signs of increased interest by buyers as Chicago’s rent growth continues to outpace most of the country’s major markets.
After years of sluggish property sales nationally, owners of Chicago apartments more recently have moved to cash out in recent months as the Chicago market’s rent growth ranks No. 2 among the country’s 50 largest markets behind San Francisco.
Not far from 73 E. Lake, a few major towers also are on the market in Streeterville.
In one recent deal just down the street from 73 E. Lake, the 289-unit Millie on Michigan multifamily property, as well as the retail portion of the 47-story tower at 300 N. Michigan Ave., sold for $122 million. A separately owned citizenM hotel in the tower was not part of the deal.
M&R, led by Tom Moran and Tony Rossi, developed the tower just south of the Magnificent Mile shopping avenue and just west of Millennium Park.
It’s unclear how much the firm, which declined to comment to CoStar News, is seeking in a sale.
A buyer could look to make “light value-add renovations to unit interiors and common areas” to boost rents, according to the CBRE materials. The tower is 94% leased, according to CBRE, and the property includes 178 parking spaces, a pool deck and other amenities.
Asking rents are $3,615 per unit and $4.02 per square foot, according to CoStar data.
M&R’s other projects in Chicago include the Addison & Clark apartment and retail complex across the street from Wrigley Field on the city’s North Side.
For the record
The seller is represented by CBRE brokers John Jaeger, Justin Puppi and Jason Zyck.