CHICAGO-The San Antonio, TX-based Lynd Development Partners has sold the 29-story EnV multifamily tower here to MetLife Inc. for more than $125 million. Lynd developed the 249-unit tower, which is across the street from the Merchandise Mart in the North Loop, in October 2010.
Neither the buyer nor the seller will release the price, though sources tell GlobeSt.com that the deal closed north of $125 million. Lynd built the luxury apartment tower, which includes 27,000 square feet of ground floor retail, for $72 million.
Amenities are an important factor at the property. Features include bamboo floors, built-in wine racks, all-glass balconies and floor-to-ceiling windows, as well as a rooftop pool, fitness center and catering kitchen. Rents average $2,420 a month.
David Lynd, president and COO of the family firm, tells GlobeSt.com that although the property was only 40% leased when it opened in 2010, the tower is now 93% occupied. “When you stop delivering new housing stock in the United States, you’re going to have better numbers in apartments,” he says.
The seller owns and manages than 33,000 units in 13 states, though this will be the company’s exit from Chicago. Lynd says the company is now focused on two new developments in Miami and Austin, though he wouldn’t rule out returning to the Windy City. “We’d have to find the right opportunity,” he says. “There’s a lot of towers that have been announced, with a lot of companies coming out of the ground. We recognize it’s not going to be easy to recreate the deal we did here, we’ll be very selective about our next project.”
The apartment development market is booming across the country, with many large markets predicting at least a year or two of demand overwhelming supply. Lynd agrees, but says the cycles will always kick in. “Multifamily starts were at a 77-year low last year, you can’t just turn off supply for the entire United States and expect us to catch up right away,” he says. “It will take a few years, but developers will catch up, and when -- that should be our next concern.”
A MetLife spokeswoman did not return a request for comment. In a statement, Robert Merck, senior managing director and head of real estate investments for the insurer, said this acquisition in a top-tier market will be held for the long term. “We are pleased to add this best-in-class property to our portfolio,” he said.
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