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
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