From a recent news release:
Chicago-based Fifield Companies and its joint-venture partner, Pacific Life Insurance Co. of Newport Beach, Calif., have announced that Canadian REIT Morguard Corp. has purchased the 848-unit Class A luxury apartment development Alta at K Station for $302 million.
“This is a landmark deal for Fifield Companies and for Chicago,” said Steven Fifield, president of Fifield Cos. “This transaction demonstrates that trophy-quality assets in thriving urban markets are very enticing for smart investors.”
John Jaeger of CBRE’s Multi Housing-Group represented Fifield Companies and Pacific Life in the sale. The $302 million sale price marks the highest amount to be paid for a Chicago downtown apartment tower since May 2011, illustrating the strength of the apartment market and the resulting high demand from investors.
“The fundamentals could not be better for investors right now,” Fifield added. “We are seeing historic rent growth, incredible leasing demand and record-breaking low interest rates for investors. All market projections show that these trends have no sign of slowing down for the foreseeable future.”
Located at 555 W. Kinzie St., the two-tower Alta at K Station complex includes 848 luxury residences and is the largest Gold LEED-certified apartment building in the country. Currently 94 percent leased, Alta at K Station is comprised of two towers, the 37-story, 420-unit West Tower and the 41-story, 428-unit East Tower. Both towers have been open since June 2010.
With the sale of Alta, Fifield Companies will now shift its attention to the upcoming launch of the 496-unit K2, the final and most luxurious development at the five-building K Station development. Fifield partnered with Wood Partners to break ground on K2 in October of 2011 and topped-off the building this fall.
“We are turning the page on one project, which will allow us to focus all of our efforts on launching K2 in April next year,” said Randy Fifield, vice chair and principal with Fifield Companies. “K2 will be the height of luxury living in Chicago. The amenities and finishes at K2 will surpass any building that has come before it.”
Residences at K2 will include studio, one-, two- and three-bedroom apartments. Interiors will feature luxury finishes such as nine-foot ceilings, stainless steel appliances, granite counter tops, plank flooring and Grohe fixtures.
K2 will feature a two-story entrance and lobby with a floor-to-ceiling window wall showcasing views of Chicago’s Loop. All on-site amenities will be located on the building’s first floor.
Residents will have access to a variety of high-end amenities at K2, including two lounge and party areas, each featuring large flat-panel televisions with surround sound, multiple seating and table vignettes and pool tables. Each lounge area will have a fireplace and open to the outdoor pool deck.
The building will begin leasing in January, with move-ins scheduled for April, said Randy Fifield.
“We are excited to usher in the luxury and lifestyle that K2 will bring to Chicago,” said Randy Fifield. “The market is demanding bigger and better rental options and K2 will meet that demand with a completely new class of product.”