There's something ironic about this development: potential multifamily sellers are jumping on the bandwagon of modern laments about rising interest rates and trying to avoid complaints by taking over good old-fashioned fixed-rate mortgages.
The 191-unit building's address, 930 West Altgeld Street, not only identifies it with the property's upscale Lincoln Park location — the street's name, German for “old money,” also likely references the loan.
Baker Development has listed the 11-story building for sale with JLL as the broker, CoStar reported.
Construction on the building began six years ago at a time when interest rates were incredibly low and it's coming onto the market at a time when interest rates are rising and multifamily investor demand is down from its peak years into the pandemic.
Baker Development is in a position to offer buyers the opportunity to assume a $78.6 million loan from Fannie Mae at a fixed interest rate of 3.78 percent, with terms of interest-only payments and a maturity of less than five years.
The price of the property was not disclosed, and CEO Warren Baker declined to comment. The complex, called Elevate Lincoln Park, is 98% leased, according to JLL. It also has 162 parking spaces and about 17,000 square feet of retail space.
Some recent sales in Chicago reflect the market's weakness: A 500-unit tower at 1326 South Michigan Avenue sold for $144 million, below its development cost, and a 198-unit building at 850 North Lake Shore Drive sold for $80 million, about a third of its 2016 price.
Underwritten loans also helped close several other sales, including the 78-unit MODE Logan Square complex, which sold for $31 million.
Meanwhile, the Lincoln Park Complex may appeal to the superstitious as it is located on Altgeld Street, but the name likely comes from John Peter Altgeld, a former Illinois governor known for pardoning several people convicted of crimes related to the Haymarket Riot, a turning point in the history of the American labor movement.
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