Multifamily N Illinois

Fulton Market loft apartments sell for $40 million

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Cushman & Wakefield’s Midwest multifamily advisory group has brokered the $40,150,000 sale of 13thirteen Randolph Street Lofts, a 74-unit mixed-use property at the southwest corner of Randolph and Elizabeth streets in the West Loop’s Fulton Market District. The per-unit price is one of the highest paid so far this year in Fulton Market, according to CoStar data.

Todd Stofflet and Jason Stevens, managing directors of Cushman & Wakefield’s Midwest multifamily advisory group, represented the seller, JP Morgan Asset Management, in the sale of the asset to RDG Funds LLC, a Chicago-based private equity firm. John Parrett and Molly Green of CBRE facilitated financing on behalf of RDG.

“The sale reflects the continued popularity of Fulton Market, particularly among investors in search of stabilized assets that stand to benefit from the neighborhood’s favorable long-term fundamentals,” said Stofflet. “As leading employers continue to establish and expand operations in the West Loop, demand for well-located rental communities like 13thirteen Randolph will increase as development pushes farther west.”

“Barriers to entry in this location are higher not only because of rising land and construction costs, but also because the property falls within the boundaries of the Near North-Near West ARO Pilot, which means any new developments must comply with stricter affordability rules,” said Stevens.

13thirteen Randolph includes two buildings: a three-story concrete building at 1313 W. Randolph, built in 1927 and designed by Fox & Fox Architects in the art deco style, and 114 N. Elizabeth, a two-story building built in 1892. Originally home to Chicago’s Wholesale Florist Exchange—at one time, the largest exchange of its kind in the U.S.—the Randolph building was named to the National Register of Historic Places in 2012. The following year, both structures were renovated as residences and retail. Today, they house 12 studios, 38 one-bedrooms and 24 two-bedrooms that were 96 percent occupied at closing. They also have a full floor of retail space that was 100 percent occupied at closing.

“13Thirteen has all of the attributes that we target in a core acquisition, including an irreplaceable urban infill location, an exceptional neighborhood demographic profile, strong proximity to key employment and unrivaled walkability,” said Brett Moore Jr., a partner at RDG. “We further believe that Fulton Market is uniquely positioned to outperform, as a combination of private investment, employment gains and social engagement continues to generate the most dynamic live-work-play environment in the city of Chicago. RDG is thrilled to be a long-term owner in Fulton Market.”

Apartments feature 11-foot ceilings, large windows, polished concrete floors, modern kitchens and full-size, in-unit laundry. Shared amenities include a rooftop deck with gas grills and dining areas, a 24/7 fitness center with cardio equipment and free weights, a theater room and a resident lounge with wet bar, pool table and media center. The community also has 69 covered parking spaces and 35 surface spaces.

13thirteen Randolph Street Lofts is blocks from the new global headquarters of McDonald’s and Midwest headquarters of Google, among other employers. In addition, the property is steps from world-class dining and shopping along Randolph Street and throughout Fulton Market, recently named one of the Top 20 “Cool Streets” in North America, according to Cushman and Wakefield’s “Cool Streets 2019” report. 13thirteen Randolph also offers proximity to public transit, including the CTA’s Green, Pink and Blue lines, as well as the Kennedy and Eisenhower expressways.