Loop Apartment Tower Sells for $126M
A 42-story apartment tower in the Loop was recently sold for $126 million. The transaction signals continued strong investor confidence in Chicago's downtown multifamily market. The sale was reportedly not a distressed asset, indicating stability and a healthy investment climate for high-end residential properties in the city's core.
- The building, located at 73 E. Lake St., was purchased by a joint venture of Intercontinental Real Estate and Magellan Development Group. The sellers were a venture of UBS and developers Tony Rossi and Tom Moran. - This transaction marks the first major downtown Chicago apartment deal of 2026. - The sale price of approximately $126.1 million for the 332-unit tower breaks down to about $380,000 per unit. The development cost for the building, which was completed in 2014, was between $110 million and $120 million. - When the property was listed for sale in 2024, it had a 93% occupancy rate with an average rent of $3,054 per month, or $3.41 per square foot. - The brokerage team from CBRE, led by John Jaeger, Justin Puppi, and Jason Zyck, represented the sellers in the transaction. - The Chicago multifamily market is experiencing a significant decrease in new construction, with 2026 deliveries expected to be the lowest since 2012, which could lead to tighter vacancy rates and benefit landlords. - Downtown Chicago's Class A apartment market saw an average rent increase of 4.1% in Q2 2025 compared to the previous year, reaching an average of $4.19 per square foot. - Investor confidence in the Chicago multifamily market is rebounding, with sales volume up and cap rates stabilizing as of Q3 2025.
