Spirit Investment, Bascom Group Pay $49M for Chicago Tower
The property last traded five years ago, when the current seller acquired it from KKR.
A partnership between Spirit Investment Partners and The Bascom Group has acquired 415 Premier, a luxury 221-unit apartment tower in Evanston, Ill., for $49.1 million. CBRE represented the seller and arranged acquisition financing for the buyer. The 2008-built property is set to undergo a series of capital improvements.
The property last changed hands in 2016, when the current seller, Crescent Real Estate, paid almost $46 million to KKR & Co. for the asset, according to data provided by Yardi Matrix.
Located at 415 Howard St., the property is next to the Howard CTA station connecting directly to downtown Chicago, which is some 12 miles away. The community is also across the street from a large retail center, with several Lake Michigan beaches also within walking distance.
The 17-story tower encompasses studios and one- and two-bedroom apartments ranging from 518 to 1,280 square feet. All units include washers and dryers, floor-to-ceiling windows and stainless-steel appliances. The pet-friendly community also offers access to a lounge, a cybercafe, a gym, a bike storage area and 245 parking spaces.
CBRE Executive Vice President Dan Cohen worked on behalf of the seller, while Executive Vice President Peter Marino arranged an acquisition loan through Rialto Capital Management.
The recent transaction is part of Spirit Investment Partners’ strategy of building an urban portfolio in markets overlooked by investors due to COVID-19-generated shifts, Scott Zwilling of Spirit Investment Partners said in prepared remarks.
According to a recent Yardi Matrix report, all large markets across the U.S. registered positive rent growth month-over-month for the third month in a row as of June. Chicago’s multifamily market is well on its way to recovery, with the average rental rate up 4.1 percent year-over-year through June, the same report shows.
While lagging most secondary and tertiary markets over the past 12 months, Chicago fared better than several gateway metros when it came to multifamily rent growth. The list includes New York City (average rent down 5.7 percent year-over-year), San Francisco (-3.2 percent) and Los Angeles (up 3.5 percent).