A 42-story apartment tower at 73 E. Lake Street, just a block west of Millennium Park, has a new landlord after trading on Tuesday in a roughly $126 million deal, according to industry and property records. The building’s 332 apartments are now controlled by a buyer group that includes Boston-based Intercontinental Real Estate Corp. and an affiliate of Magellan Development Group.
Sale Details
Illinois property records list the buyers as Intercontinental Real Estate Corp. and Magellan Investment Partners and identify the seller as a venture tied to UBS along with developers Tony Rossi and Tom Moran, as reported by Crain's Chicago Business. The outlet pegs the closing price at about $126 million. Rossi said the development costs for the project totaled roughly $110 million to $120 million when the building was completed.
Building And History
The tower at 73 E. Lake was completed in 2014 and includes roughly 332 apartments, according to its listing on LoopNet. The property spans about 647,500 square feet and features a pool deck and a 178-space garage, placing it among the newer large rental buildings in the Loop.
Rents And Performance
Marketing documents circulated when the property first hit the market showed average rent at about $3,054 per month, roughly $3.41 per square foot, with occupancy near 93 percent, according to The Real Deal. CoStar’s market data later showed some asking rents closer to $3,615 per unit, about $4.02 per square foot, reflecting how pricing snapshots shifted as downtown demand tightened.
The Buyers
Intercontinental Real Estate Corp. is a Boston-based investment manager and developer with a national portfolio, according to Intercontinental Real Estate Corp.. Magellan’s affiliated investment arm comes with deep Chicago roots. Magellan Development Group is the master developer behind Lakeshore East and large projects such as Aqua and the St. Regis Chicago, according to industry announcements and press releases on PR Newswire.
What It Means For The Loop
Developers say the trade highlights a split market where strong rent growth collides with cautious capital and high financing costs. Tony Rossi told Crain's Chicago Business that a relatively shallow buyer pool and uncertainty about taxes and the election have made some potential sellers nervous. The transaction lands within a broader wave of downtown listings and selective trades as investors pursue Chicago’s rent gains, according to CoStar News.
The new ownership group is taking on a largely leased, amenity-heavy tower in one of the Loop’s most visible locations and will have to decide whether to push rents further or focus on targeted upgrades. Observers are watching the sale as a bellwether for how institutional and out-of-market buyers are valuing stabilized downtown rentals in the current climate.
