CHICAGO—High Street Residential, the residential subsidiary of Trammell Crow Co., and joint venture partner the Carlyle Group have just made a quick and lucrative sale of Park 205, the three-story luxury apartment community they recently completed in suburban Park Ridge, to L&B Realty Advisors, LLC.
The price was not disclosed, but Cook County records show the property went for $48.25 million. The energetic leasing activity that preceded the sale certainly helped push up its value and shows that while tenants have been flocking to downtown residential properties, many suburban developments also show great promise.
"We were really pleased with the early leasing success we saw at Park 205," Grady Hamilton, managing director of TCC's Chicago business unit, tells GlobeSt.com, "especially given the season we opened." Forty-two of the 115 units, or about 36.5%, were leased when the companies closed the sale on December 22. The first portion of units were ready for occupancy in October and the rest were certified by December 8.
Operators usually stabilize properties before selling, but given the "deep interest that investors have for boutique, infill luxury properties," High Street "was in a position to sell Park 205 before stabilization," Hamilton says. "We were the first group in many years to develop luxury units here." And the property has attracted a very diverse group of renters, with empty nesters and mid-level professionals being the most numerous. "There is still a strong source of demand for these high-quality suburban communites."
Increasingly renters of all types want a compact, transit-oriented lifestyle, and Park 205 can provide that, Hamilton adds. It is adjacent to a new Whole Foods Market and within walking distance to the Park Ridge Metra Station, connecting the residential community to Chicago's CBD within 30 minutes. "There is a strong narrative to be told" about the new multifamily communities sprouting in the city and how they help create the lifestyle people want. "But others view living in downtown Park Ridge as also being part of a compact lifestyle. There are success stories that exist in the suburbs as well."
Park 205 was designed by ESG Architects and completed in the fourth quarter. It offers one bedroom, one bedroom plus den, two bedroom, two bedroom plus den and three bedroom units. Amenities include a pool and sun deck with outdoor fire pits and cabanas, club room, Wi-Fi coffee lounge, fitness center, business center, dog spa, guest suite, bicycle storage, and covered/heated parking.
John Jaeger, executive vice president of CBRE Group, Inc., represented the seller in the transaction.
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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.
