With one luxury condominium tower already on the market near Millennium Park, John Buck decided to sell another tower in River North as well.
The Chicago-based developer hired Jones Lang LaSalle to sell 3 Eleven, a 245-unit, 25-story building at 311 West Illinois Street that opened in 2018.borrow at Record high. However, the downtown multifamily investment market is sluggish amid rising interest rates and a general aversion to large urban buildings among investors.
That hasn’t stopped Buck in the process of selling Mira Chicago 42 story unit tower at 201 N. Garland Court. According to the website of Walker & Dunlop, the brokerage that sells the 402-unit building, the buyer has agreed to buy the building, but it is not clear when the deal will be finalized. On the Walker & Dunlop website, the status of the property “under contract” has not changed for months.
A representative for Walker & Dunlop did not respond to a request for comment. A representative for Buck declined to comment.
Sales of downtown condominiums have been sluggish, with only three so far exceeding $100 million.In the latest big deal, Canadian investor Morgard paid $133 million For Echelon Chicago, a 350-unit building in the Fulton River area.
Brokers say many institutional investors have decided to avoid the downtown apartment market. Property taxes expected to rise Perceived crime and anti-corporate attitudes in city government.
Rising property taxes are a risk after Cook County Councilor Fritz Kaegi raises the valuation of downtown buildings in 2021. Kaegi’s office values 3Eleven at $73.1 million, up 24% from 2020 Did.
The county hasn’t yet calculated or sent out this year’s tax returns, leaving many landlords wondering just how high it will go. A new acquisition is on the horizon, Broker said.
It’s up to JLL to find someone still enthusiastic in downtown Chicago.The company barely includes enthusiasm for 3Eleven in the property’s marketing brochure.
“Occupants of this stunning building enjoy an ideal lifestyle to live, work and play, stepping into a cutting-edge new office development and thriving River North location,” the brochure said. is written in “Surrounded by a vibrant nightlife, Chicago’s best culinary scene, and the city’s best employers, these renters are drawn to having the best of Chicago right at their doorstep.”
Brochures do not include asking prices for buildings that are 95% occupied. According to the brochure, monthly rents range from $2,394 for a studio apartment to $5,872 for a three-bedroom unit.
In addition to 3Eleven and Mila, Buck also owns Porte, a 586-unit multifamily home in West Loop, in a joint venture with Lendlease. On the office front, the developer recently hired JLL, and in June he sold his 38-story office building at 33 N. LaSalle St. Buck. announced plans A two-building office project adjacent to the Kennedy Expressway in West Loop.