Major East Loop Apartment Tower Acquired
What happened
Magellan Investment Partners and Intercontinental Real Estate acquired a 332-unit apartment high-rise in Chicago's East Loop for $126 million. The transaction marks the first major downtown apartment deal of 2026. This sale signals renewed investor confidence in the city's core multifamily market.
Why it matters
- The 42-story tower, located at 73 E. Lake St., was sold by its original developers, Tony Rossi and Tom Moran, in a venture with UBS. - The sale price breaks down to approximately $380,000 per unit. - The original development cost for the building, which was completed in 2014, was reported to be between $110 million and $120 million. - When the tower was listed for sale, it had a 94% lease rate with average asking rents around $3,615 per unit, or $4.02 per square foot. - The new ownership may pursue light renovations to the units and common areas as a value-add strategy to increase rents. - The downtown market is experiencing a significant slowdown in new construction, with 2026 deliveries expected to be the lowest since 2012, tightening inventory for landlords. - While the Gold Coast submarket saw a 6% year-over-year increase in price per square foot in mid-2025, the Loop/Lakeshore East area, where the acquired tower is located, saw a more moderate 3% increase.
Key numbers
- Magellan Investment Partners and Intercontinental Real Estate acquired a 332-unit apartment high-rise in Chicago's East Loop for $126 million.
- The transaction marks the first major downtown apartment deal of 2026.
- The sale price breaks down to approximately $380,000 per unit.
- The original development cost for the building, which was completed in 2014, was reported to be between $110 million and $120 million.
What happens next
- The new ownership may pursue light renovations to the units and common areas as a value-add strategy to increase rents.
- The downtown market is experiencing a significant slowdown in new construction, with 2026 deliveries expected to be the lowest since 2012, tightening inventory for landlords.
Quick answers
What happened in Major East Loop Apartment Tower Acquired?
Magellan Investment Partners and Intercontinental Real Estate acquired a 332-unit apartment high-rise in Chicago's East Loop for $126 million. The transaction marks the first major downtown apartment deal of 2026. This sale signals renewed investor confidence in the city's core multifamily market.
Why does Major East Loop Apartment Tower Acquired matter?
The 42-story tower, located at 73 E. Lake St., was sold by its original developers, Tony Rossi and Tom Moran, in a venture with UBS. The sale price breaks down to approximately $380,000 per unit. The original development cost for the building, which was completed in 2014, was reported to be between $110 million and $120 million. When the tower was listed for sale, it had a 94% lease rate with average asking rents around $3,615 per unit, or $4.02 per square foot. The new ownership may pursue light renovations to the units and common areas as a value-add strategy to increase rents. The downtown market is experiencing a significant slowdown in new construction, with 2026 deliveries expected to be the lowest since 2012, tightening inventory for landlords. While the Gold Coast submarket saw a 6% year-over-year increase in price per square foot in mid-2025, the Loop/Lakeshore East area, where the acquired tower is located, saw a more moderate 3% increase.
