Draper and Kramer Inc. has expanded its holdings in Chicago with the acquisition of HUBBARD221, a 23-story, 195-unit luxury apartment tower in the River North neighborhood. The property was purchased through a 1031 exchange following the firm’s sale of Prairies Shores, a 1,675-unit, multi-building apartment community in Chicago’s Bronzeville section. Terms of the purchase were not disclosed.
The seller was not identified but the property at 221 W. Hubbard St. was developed by Hubbard Street Group and Centrum Realty and Development and completed in late 2017. A $53 million three-year construction loan was originated by BMO Harris Bank in June 2016 for the property, according to Yardi Matrix data.
The building has 5,000 square feet of retail. It has 95 parking spaces and reserved spaces available in the garage for additional monthly fees, according to Yardi Matrix data. The building is LEED-Certified Silver and has electric vehicle charging stations and is within a quarter-mile of a transit station. The property was 89.7 percent occupied at the time of the sale, Yardi Matrix reported.
The property features studio, one-, two- and three-bedroom units, including penthouse residences, ranging in size from 467 to 1,511 square feet. Rents range from $2,009 for a studio to $7,216 for a three-bedroom penthouse with an average rent of $2,951, according to Yardi Matrix data.
Units have open floorplans and luxury finishes, including gray-tone plank flooring; gourmet kitchens with quartz countertops, porcelain backsplashes and stainless-steel appliances; floor-to-ceiling windows; custom closets and in-unit washers and dryers. Some apartments also have private balconies or terraces, built-in desks and walk-in closets. The community amenities include a resident lounge; coworking space; chef’s kitchen and party room; fitness center; yoga studio and meditation lounge; rooftop terrace with grilling stations, a fire pit, cabanas, pool and hot tub. Lower levels include a dog run, pet spa, bike storage and bike repair station.
Draper and Kramer was represented internally in the transaction. John Jaeger, Dan Cohen and Justin Puppi of CBRE represented the seller.
One of the largest property management firms in Chicago, Draper and Kramer will operate HUBBARD221. The family-owned and privately-held firm now has a portfolio of more than 8,000 rental units across Chicago, St. Louis, Dallas and San Antonio, Texas.
Blas Puzon, the firm’s chief investment officer, said in a prepared statement the high-quality asset delivers the live-work-play lifestyle that many renters seek and is an example of the kind of core investment Draper and Kramer is currently acquiring. He noted the company remains bullish on the Chicago multifamily market and its ability to deliver attractive risk-adjusted returns.
Earlier this year, Draper and Kramer broke ground on a 24-story multifamily building in the South Loop near McCormick Square. The 275-unit asset at 2111 S. Wabash is slated for completion in summer 2020.