Virtú Snaps Up Chicago Community
The deal marks the investor's first acquisition in the city.
Virtú Investments has acquired Marlowe, a 176-unit multifamily property in Chicago. The purchase was made through co-ownership by the Evergreen Fund, the firm’s closed-end opportunity fund, and a single-asset syndication. Quarterra Multifamily, which developed the property at 169 West Huron Street in 2018, sold the community.
The construction loan that facilitated the development of the building totaled $43.4 million and was originated by Voya Financial.
Marlowe, which offers studios, one- and two-bedroom units, is currently about 96 percent occupied, according to Yardi Matrix data. Rents range from approximately $2,100 to $6,900.
Interior amenities include above-standard ceiling heights, in-unit washers and dryers and microwave ovens. Most of the units feature private balconies or patios.
The transit-oriented development is situated in the River North neighborhood, immediately north of the Loop, with close access to CTA trains. Marlowe offers a rooftop lap pool, private garage with electric vehicle charging stations, fitness studio with yoga space and community lounge with gaming tables and a bar.
The deal represents California-based Virtú’s entry into Chicago. As a multifamily real estate investment firm specializing in properties in the western United States, it also represents a geographic expansion into the Midwest.
The Virtú Opportunity Fund, launched in 2015, is designed to take advantage of 1031 Exchanges within the fund to defer taxes on gains and cash flow. The Evergreen Fund provides Virtú with the flexibility to move in and out of markets as cycles shift, according to Michael Green, CEO and founding partner of Virtú.
Chicago multifamily pipeline slows
Downtown Chicago is facing an undersupply of apartments, Green said, with development having slowed in recent years. That will put upward pressure on rents, he noted.
And the city is outperforming national averages too. During the first four months of the year, advertised rents in Chicago were up 0.5 percent on a trailing three-month basis, coming in above the 0.3 percent U.S. figure. In the top 30 metros tracked by Yardi Matrix, Chicago ranked fifth year-over-year with the average advertised rent settling at $1,908.
Also in the Chicago area, a $200 million mixed-use project in the North Lawndale neighborhood is making headway. Habitat’s Ogden Commons has opened its first mixed-income building and has broken ground on the second wave of housing units as well. Completion is expected late next year.
