When Marquette went in July 2020, we were confident that this investment would definitely pay off. secured a loan An 11-story project and another nearby. The city has been reeling from the pandemic, and many lenders and investors have been reluctant to fund large, risky projects during these uncertain times.
With many residents fleeing the city, the future of downtown Chicago looked particularly bleak.Apartment occupancy and rents plummet: By fall 2020, downtown occupancy will be dropped to 87.1%, That’s the lowest since at least 1998, according to valuation and consulting firm Integra Realty Resources.
However, the market will begin to recover in the spring of 2021, with downtown rents almost all-time high today. Marquette’s investors did well too. With the recapitalization, Evo was valued at $103.5 million, or $428,000 per unit, county records show. This is a 22% increase from his $85 million construction cost for the project.
Marquette President and Chief Investment Officer Darren Sloniger said: “A huge thank you to everyone who has stood behind us in the darkest days of COVID…we were grateful to be able to get their money back.”
Marquette has raised equity for its 2020 development from a wealthy investor group in Chicago, Sloniger said. Investors also included Chicago-based Zeller Realty Group, a prominent Chicago office landlord, he said.
Slouniger declined to discuss the price of the property or other financial details of the capital raise, including Marquette’s new partner.Real estate data provider CoStar Group said Pacific Life was the buyer of the property. clarified. Pacific He didn’t get a call from a Life representative.
Marquette financed the construction of Evo overlooking Union Park with a $40.9 million loan from St. Louis-based Stifel Bank & Trust and approximately $17 million in mezzanine financing from New York-based JPMorgan Chase. provided.
The new owned venture of Pacific Life and Markets financed its recent recapitalization with a $62.6 million mortgage for Lutherans from Minneapolis-based Slivento Financial, according to county records. Sloniger declined to discuss the investment status of JP Morgan.
Evo, which opened in February, is now 85% leased, he said. According to CoStar, building rents range from $1,863 a month for a studio apartment to $3,998 a month for a two-bedroom unit.As CoStar data shows, the average unit rent is $2,785, or $3.63 per unit. is.
“We love this project, we love the place, and we want to stay long term.
Marquette has more rides in the neighborhood. The developer recently completed Parq Fulton, a 278-unit project at 1400 W. Randolph St. just east of Evo, and is constructing a 210-unit building at 140 N. Ashland Ave, about a block west of Evo. is.