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850 North Lake Shore Drive

Crescent Heights Acquires Chicago Multifamily From George Gatch For $80M
SOLDMultiFamily

Crescent Heights Acquires Chicago Multifamily From George Gatch For $80M

850 North Lake Shore Drive

$80,000,000

Building Size

Asset Type

MultiFamily

Closing

Apr 2, 2024

AI

The 19-story Lake Shore Drive apartment complex located at 850 North Lake Shore Drive in Chicago was sold for $80 million. The property features 198 units, translating to a price per unit of $404,040. The transaction took place between the buyer, Russell Galbut of Crescent Heights, and the seller, George Gatch of JPMorgan Asset Management.

Summary of transaction details:

  • Property Type: Multifamily
  • Transaction Amount: $80,000,000
  • Units: 198
  • Price Per Unit: $404,040
  • Address: 850 North Lake Shore Drive, Chicago
  • Market: Chicago

The sale of the apartment complex was facilitated by Chuck Johanns, Elizabeth Gagliardi, and Susan Lawson from Newmark, serving as the brokers in the deal. The financing for the acquisition was secured through a $61 million mortgage loan from Centerbridge Martello Advisors and Massachusetts Mutual Life Insurance Company. This purchase reflects a significant discount from the property's previous sale price of $140 million in 2016, highlighting the impact of rising interest rates on real estate transactions. Crescent Heights plans to continue its development efforts, including the construction of a new 52-story Fulton Market apartment complex.

Players

Chuck Johanns

Newmark

Broker

$820.9M

vol

8 deals

Broker
 MassMutual
MassMutualLender

Chicago MultiFamily Market Snapshot

Boundary boundary · MultiFamily · Sale transactions

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Purchase Price

Annual NOI

Loan Amount

Interest Rate (%)

Loan Term (yrs)

Down Payment (%)

Cap Rate

0.20%

Cash-on-Cash

-0.06%

Monthly Payment

$14,164

Annual Debt Svc

$169,964

Annual Cash Flow

$-11,334

DSCR

0.93