Multifamily N Illinois

South Loop, 298-unit high-rise sells in Chicago

South Loop, 298-unit high-rise sells in Chicago,ph1

Holliday Fenoglio Fowler, L.P. (HFF) announced the off-market sale of Burnham Pointe, a 298-unit high-rise apartment property in Chicago’s South Loop. The HFF team advised on the transaction between the seller, Crescent Heights, and the buyer, a joint venture between Draper and Kramer and Intercontinental Real Estate Corporation. Terms of the acquisition were not disclosed.

Burnham Pointe is located at 730 S. Clark Street within walking distance to the Harrison, LaSalle and Library/Van Buren “L” stations; the LaSalle Street Metra station and retail and dining amenities in the historic Printer’s Row neighborhood. Completed in 2008, the 28-story property comprises a mix of one- and two-bedroom luxury units featuring spacious layouts, stainless steel appliances, floor-to-ceiling windows and large balconies.

“With its location in the heart of Printers Row, which continues to be a vibrant, sought-after area thanks to its eclectic, urban vibe, proximity to downtown employers, and strong renter demographics, Burnham Pointe presented an ideal investment opportunity to expand our Chicago portfolio,” said Blas Puzon, senior vice president of acquisitions with Draper and Kramer. “And while the building is in great condition thanks to its solid construction, it also offers the opportunity to add value through updates to common areas and improvements to retail curb appeal.”

Draper and Kramer’s renovation plans entail reprogramming the property’s current on-site amenities, which include a resistance pool, spa, sauna, outdoor terrace with fireplaces, fully equipped fitness center, clubroom with full kitchen/bar, private lounge, dog run and 24-hour doorman.

“We’ve evaluated the current amenity offerings and will be retooling them based on our own expertise and research into how residents really use these areas,” said Puzon. “For example, knowing that pet-friendly amenities are a high priority for today’s renters, we plan to expand and relocate the existing dog run by taking advantage of underutilized space in the parking garage.”

The HFF investment advisory team included managing directors Sean Fogarty and Marty O’Connell, senior director Wick Kirby and director Kevin Girard. The property was purchased free and clear of existing financing and is 96 percent occupied. Draper and Kramer, which provided third-party management for Burnham Pointe from its original lease-up until it was sold in 2010, will again assume management of the property.

“We are thrilled to partner with Draper and Kramer for this acquisition,” said Peter Palandjian, chairman and CEO of Intercontinental Real Estate Corporation. “It is the start of a wonderful relationship. We have seen excellent returns in the Chicago area, a niche that our team knows very well.”