Crescent Heights is moving on from its marquee Chicago building.
The Miami-based developer Crescent Heights aims to sell NEMA Chicago, one of the city’s tallest skyscrapers, amid a nationwide real estate slowdown, CoStar reported.
CBRE has been enlisted to sell the 76-story, 900-unit tower at 1210 South Indiana Avenue, potentially fetching one of the city’s highest prices in recent years despite economic challenges. The tower’s size and demand for luxury residential properties may contribute to its appeal.
So far in 2023, the highest multifamily tower sale in the Windy City was a $231.5 million deal for a 44-story apartment tower by Zara founder Amancio Ortega.
Crescent Heights made a significant investment in Chicago’s Streeterville neighborhood earlier this year with the purchase of a nearly 400-unit apartment tower for $173 million from Invesco. At the time, it was highest price paid for a residential building in the city in nearly two years, according to the outlet.
However, Chicago’s total apartment property sales in 2023 are projected to be below previous years, with $3 billion compared to over $5 billion annually in 2021 and 2022, according to CoStar data.
Also, in August, it was revealed Crescent Heights wouldn’t be developing another high-rise next to Nema.
The Miami-based firm hired CBRE vice president Tom Svoboda to sell the 43,100-square-foot parcel at 1201 South Michigan Avenue near Grand Park, roughly four years after building Nema Chicago apartment complex on the adjacent lot, Crain’s reported.
No asking price was revealed at the time for the vacant site, while NEMA has $405 million in debt attached to the development, the outlet reported.
Meanwhile, Chicago’s office market is still ailing, as it’s been over a year since a major office property changed hands for $100 million or more in the Loop area, one of the last being Google’s $105 million purchase of the James R. Thompson Center on July 28, 2022, CoStar reported. A drought for the Loop ended in September when Menashe Properties picked up 230 West Monroe Street for $45 million, a steep discount from its previous sale price.
Two other sales occurred on that same day, both made by a venture of Prime Group and Capri Interests that played a role in landing Google in the Loop. The firms bought neighboring towers at 111 West Monroe Street and 115 South LaSalle Street for about $118 million.
— Ted Glanzer