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.
- 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.
