JV Nabs Apartments in Chicago’s Printers Row

A joint venture of Chicago-based Draper and Kramer Inc. and equity partner Intercontinental Real Estate Corp. has acquired the 298-unit Burnham Pointe in Chicago’s South Loop Printers Row neighborhood.

The acquisition of the 28-story property at 730 S. Clark St. enables Draper and Kramer to enlarge its Chicago-area portfolio. Acquisition terms were not disclosed. The off-market transaction was brokered by the Chicago office of HFF.

Burnham Pointe features a blend of large one- and two-bedroom apartments, more than 14,390 square feet of retail at ground floor and a 255-car parking garage. The upsides of the location start with walkable distances to the heart of Chicago’s Loop, its financial district, Grant Park, Millennium Park, the Museum Campus and multiple CTA stations.

Well timed

“The timing of this deal matched up nicely with our need to redeploy capital,” Draper and Kramer senior vice president of acquisitions Blas Puzon told MHN.

“Likewise, this asset represented what we were looking for in an addition to our Chicago-area portfolio, both in terms of its location in an established, sought-after neighborhood as well as the quality of the building’s unit and amenity offerings.”

Named for its role as historic hub of Chicago’s printing industry, Printers Row remains a coveted neighborhood due to its vibrant urban ambience, closeness to downtown job centers and robust renter demographics, Puzon added. “And while the building is in great condition thanks to its solid construction, it also offers the opportunity to add value through updates to common areas and improvements to retail curb appeal,” he said.

Burnham Pointe’s apartments extend in size from 735 to 2,256 square feet. Ultra-high-end one- and two-bedroom penthouse residences are found on the 27^th and 28^th floors. Among the apartments’ features and finishes are floor-to-ceiling windows, 10-foot-high ceilings, well-appointed kitchens, washers and dryers. All units provide hard-surface countertops, wood floors and oversized balconies.

“Primarily, our team made sure we weighed this acquisition carefully against the backdrop of upcoming supply deliveries in the market – especially in the face of slowing-[to]-flat rent growth and a concessionary environment,” Puzon said.

“We were confident moving forward with the deal because we chose an asset that is ideally positioned location-wise, and also has certain physical attributes that are superior to its peers. We also appreciated that while the property is in great condition overall, it still presents value-add opportunity.”

Reassuming management

Draper and Kramer provided third-party management for Burnham Pointe from the time of its original lease-up in 2008 until it was sold in 2010. As part of the acquisition, the company will again assume management of the property.

”We are thrilled to partner with Draper and Kramer for this acquisition,” noted Intercontinental Real Estate Corporation chairman and CEO Peter Palandjian. “It is the start of a wonderful relationship. We have seen excellent returns in the Chicago area, a niche that our team knows very well.”