Two big Chicago developers that broke ground on a 47-story mixed-use tower on North Michigan Avenue in the early months of COVID-19 have closed out their investment in the project, selling the multifamily and retail portions to Cedar Street and Kayne Anderson Real Estate.
Chicago-based Cedar Street and Florida-based Kayne Anderson Real Estate have acquired the 289-unit Millie on Michigan apartments and 25,209 square feet of retail space at the base of the tower at 300 N. Michigan Ave., according to people familiar with the deal. The sale price could not yet be found in online property records.
The deal continues a run of major apartment tower sales in 2025, including a $170 million deal for the 375-unit Fulbrix tower in Fulton Market that was the highest-priced Chicago multifamily sale since 2023.
Before the Millie on Michigan sale, there had been $1.8 billion in Chicago-area multifamily sales so far in 2025, following $3.9 billion in volume the previous year. Several other large towers are on the market for sale.
The Millie on Michigan sellers were Chicago real estate firms Sterling Bay and Magellan Development Group, which took the rare step of beginning construction on a major U.S. project just a few months into the pandemic.
Construction of the tower just south of the Magnificent Mile shopping district was backed by debt from Bank OZK, Pearlmark Real Estate Partners and Monroe Capital and equity from Wanxiang America Real Estate Group and crowdsource funds raised by CrowdStreet.
Sterling Bay and Magellan helped fund the project with an agreement from Dutch hotel brand citizenM to buy its 280-room hotel on floors 6 through 15 after construction was completed. That nearly $75 million sale was completed in late 2022.
After selling the hotel, Magellan and Sterling Bay refinanced the remainder of the property with $210 million in new debt from JPMorgan Chase Bank and paid off the construction debt.
The developers put the apartments and retail space on the market for sale in January. At the time, the apartments were 96% leased and the retail was vacant, according to CBRE materials.
“The Millie on Michigan marked Sterling Bay's entry into multifamily development in Chicago, and we'll always have a special affection for it,” a spokesperson for Sterling Bay said in a statement to CoStar News that did not name the buyers or price. “This stunning example of modern luxury, with its sophisticated glass facade and architectural detailing, was a significant addition to the Magnificent Mile, and its prominent place in Chicago's skyline will continue to make us proud.”
Magellan declined to comment. Cedar Street and Kayne Anderson did not immediately respond to a request for comment from CoStar News.
Buying an existing, new tower is a relatively rare move by Cedar Street, which is known for converting historic properties into apartments and ground-up projects. That includes large projects in Las Vegas and San Diego.
Kayne Anderson is an investor in real estate sectors including senior and student housing, traditional apartments, medical offices and self-storage throughout the country.
The firm previously held talks with Sterling Bay about potentially investing in Sterling Bay’s stalled, multibillion-dollar Lincoln Yards project on Chicago’s North Side, before recently emerging as a potential partner with Chicago-based JDL Development to buy and redevelop the approximately 55-acre site.
For the record
CBRE brokers John Jaeger, Justin Puppi, Jason Zyck and Danny Zeboski represented the sellers in the multifamily offering. CBRE’s Christian Williams, Michael Wilson, Ryan Knutson and Luke Molloy brokered the retail sale.