Multifamily Midwest

Several Class A Apartment towers up for sale

| markt

The apartment market is booming in Chicago and big name developers are attempting to capitalize on the recent surge in value as several buildings have been offered up for sale. Chicago-based Fifield Companies has announced that Echelon and Alta K Station, two Class A luxury apartment complexes in Chicago’s West Loop are available for sale. The buildings offer a combined 1,198 units.

The apartment market is booming in Chicago and big name developers are attempting to capitalize on the recent surge in value as several buildings have been offered up for sale.

Chicago-based Fifield Companies has announced that Echelon and Alta K Station, two Class A luxury apartment complexes in Chicago’s West Loop are available for sale. The buildings offer a combined 1,198 units.

“As a commercial developer, it’s our business model to build, hold for a short time and then sell when the timing is right,” said Steven Fifield, president and founder of Fifield Companies, in a released statement. “The apartment market is very strong right now. It’s the hottest asset class around and these two buildings are high-performing rentals that offer an investor a great opportunity to own a large market share of the West Loop.”

John Jaeger and Dan Cohen of CB Richard Ellis’ Multi Housing-Group are representing Fifield Companies and Pacific Life Insurance Co. in the sale.

Located at 353 N. Desplaines St., Echelon at K Station was completed in 2008 and is 95 percent leased. A 350-unit high-rise, Echelon at K Station includes studio, one- and two-bedroom residences with one to two baths. Floor plans range in size from 572 to 1,111 square feet with rents ranging from $1,565 to $2,845 per month.

Located at 555 W. Kinzie St., the two-tower Alta at K Station complex includes 848 luxury residences and is the largest Gold LEED-certified apartment building in the country. Currently 87 percent leased, Alta at K Station is comprised of two towers, the 37-story, 420-unit West Tower and the 41-story, 428-unit East Tower. Both towers have been open since June 2010.

Both towers offer studio, one- and two-bedroom floor plans with one to two baths, as well as several three bedroom penthouses. Floor plans range from 508 to 1,807 square feet with rents starting at $1,455 per month.

These are not the only buildings to hit the market recently.

According to a report in Crain’s, the Flair Tower, a 198-unit tower at 222 W. Erie St. is being marketed by Holliday Fenoglio Fowler L.P. at the request of the developer McCaffery Interests Inc., and, Moran & Co is marketing the Parc Huron, a 21-story building at 469 W. Huron St, for sale.

It’s no surprise as to why so many major projects are up for sale. According to a recent report from Appraisal Research Counselors, the average rent for Class A apartment buildings in 2011 is up 9.5 percent from a year earlier.

Ron DeVries, vice president of Appraisal Research Counselors, said in an interview with the Illinois Real Estate Journal earlier this month that demand for apartments in Chicago is currently outpacing supply. The Chicago market has absorbed an average of 1,700 units each year for the past three years. With 1,000 scheduled to be delivered this year and less than that on the docket for 2012, it seems that the demand could emain strong for the next several years.