The first residents of a brand-new 189-unit apartment tower steps from Millennium Park have barely moved in, and the building’s developer is already putting it up for sale.
The venture including Tom Roszak and Dan Moceri have hired CBRE to sell the rental units in Parkline Chicago, a 26-story building at 60 E. Randolph St. that just opened its leasing office in February. The property is almost completely leased, another sign that the downtown multifamily market is bouncing back from a severe pandemic-induced slump last year.
“I’m pleasantly surprised,” said Roszak, partner at Moceri + Roszak. “It’s turned out well and people love the building.”
The tower also includes 24 condominiums on floors 20 through 26 that are not part of the sale. Roszak declined to say what he expected the property to fetch. A CBRE executive did not respond to a request for comment. Only a few big high-end downtown multifamily properties have changed hands in the past couple of years, but prices of the handful that have sold ranged from about $380,000 to $480,000 per unit, according to Real Capital Analytics, a New York-based research firm.
The downtown apartment investment market has begun to perk up as occupancies and rents have rebounded and investors have grown more confident about the future. A San Francisco investment firm recently acquired McClurg Court Center in Streeterville, the second-biggest apartment complex in downtown Chicago, with 1,061 units. The Bernardin in River North, the Shoreham and Tides in Lakeshore East and 1407 on Michigan in the South Loop have all hit the market in recent months.
Roszak and Moceri are eager to sell, as well. They’re ready to move on to their next rental project: A 375-unit tower four blocks west of the McDonalds headquarters in Fulton Market. They expect to break ground on the development in October or November, Roszak said.
The development duo typically sell their buildings soon after leasing them up, cashing out of JeffJack, a 190-unit tower in the West Loop, in 2015 and Linea, a 265-unit high-rise in the Loop, in 2018.
Given the sorry state of the downtown market at the beginning of the year, Roszak figured it could take a while to fill up Parkline, but it didn’t. The building is 80 percent occupied but 96 percent leased, with the occupancy rate set to rise as many tenants move in over the next month, Roszak said.
The developers have pricing power, too. They started out renting Parkline’s apartments for about $3.10 to $3.20 per square foot and offered tenants two months rent-free, Roszak said. Apartments there now lease for about $3.75 per square foot with one month of free rent, he said.
“Apartments are hot,” he said. “We’re happy about that.”
Parkline’s condos, meanwhile, aren’t so hot, at least not yet. The developers have yet to sell any of the 24 for-sale units but have not completed construction of them, Roszak said.
The condos range from $1.4 million for a 2,136-square-foot three-bedroom unit to $3.2 million for a 3,555-square-foot four-bedroom penthouse, according to the Parkline website.
Designed by Roszak, who started his career as an architect, Parkline features amenities typical of a high-end apartment building, including a two-story sky lounge, an indoor/outdoor pool, fitness and yoga studio, and media room.