CHICAGO—The downtown multifamily market continues to set records. Related has just sold OneEleven, its 60-story apartment tower at 111 W. Wacker Dr. to Heitman for over $328 million. At $651,000 per unit, Related officials say it is the highest amount ever paid for a Chicago apartment building.
The previous owner of the site at Clark St. and Wacker Dr. had already begun construction on the proposed 90-story Shangri-La hotel and condominium tower when the onset of the recession halted construction. Related took over the site just a little over three years ago after the partially constructed base of the building had sat untouched for several years. Related redesigned the site as 504 units of luxury rental housing, redeveloped the property and began leasing last spring.
“The acquisition of OneEleven in 2011 came at a significant discount to replacement cost making it an ideal fit for our fund management platform, skill set and our fully integrated execution strategy,” says Justin Metz, managing principal of Related Fund Management, an investment adviser. “In just three years, we were able to bring new resources, develop a marquee core asset and maximize value for our partners and investors.”
“By assembling a world-class design and construction team, we were able to take a distressed property along Chicago's riverfront that for years was symbolic of the recession and transform it into a luxury apartment tower that helped put the Loop on the map as one of Chicago's top residential neighborhoods,” says Curt Bailey, president of Related Midwest.
New York-based Handel Architects designed the glass-sheathed tower and Kara Mann Design did its interiors. It opened in July 2014 and features a mix of studio, convertible and one-, two- and three-bedroom residences and more than 30,000-square-feet of amenity space. The property has proven popular and tenants now occupy more than 80% of the units.
“The remarkable response, reflected first by the quick pace of leasing and, now, the record-setting sale of the building, validates our vision for this site and the Loop as a whole, where a number of new apartment developments are following in the footsteps of pioneering projects like OneEleven,” Bailey adds.
Related Midwest will soon break ground on a 67-story residential tower at 451 E. Grand Ave. and also plans to develop 400 Lake Shore Dr., the site of the former Chicago Spire project.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
