CHICAGO—Chicago-based The Habitat Company continues to deepen its involvement in the city's burgeoning luxury housing market. The multifamily property developer and manager, which is also expanding its national profile, recently entered into a joint venture with Newport Beach, CA-based Pacific Life and Township Capital in the acquisition of 1333 S. Wabash, a 305-unit class A rental tower in Chicago's bustling South Loop neighborhood. The venture paid $125.1 million, according to Cook County property records.
Habitat now handles leasing and property management for the 28-story tower, and says tenants have already leased 75% of the units. The building has only been open for a little more than one year, so a relatively quick lease-up seems likely. Designed by Chicago-based Brininstool + Lynch, it offers a mix of one-, two- and three-bedroom units, including nine duplex penthouses.
“This building presented a great opportunity for us – along with our partners – to acquire an asset below today's replacement cost and benefit from continuing growth of Chicago's rental market,” says Matt Fiascone, Habitat's president. “We know the South Loop will continue to mature with new residential development, schools – like the proposed CPS high school – retail and entertainment, and we're excited to be part of the neighborhood fabric with such a significant building.”
Although the building is relatively new, Habitat plans to enhance select common spaces and make minor changes to interior units, Fiascone says. But because of the high caliber of unit finishes, such as hardwood flooring, quartz countertops, large walk-in closets and floor-to-ceiling windows, the company needs to do very little.
Its pristine condition made the building especially appealing, according to Bryan Sullivan, vice president of acquisitions and investment at Habitat. “This is a stunning building that's only a year old, so it's a perfect fit for our partners' long-term investment strategy. A building like this is an excellent way to start off our first venture with Pacific Life.”
As reported in GlobeSt.com, Habitat also plans to expand its national profile. In 2016, it launched a programmatic partnership with CA Residential LLC, the multifamily investment and development division of CA Ventures. Habitat assumed management of a five-building, 1,215-unit apartment portfolio owned by CA. In addition, the firms plan to pursue co-development and investment opportunities in select markets throughout the US.
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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.
