Crain’s Chicago Real Estate Daily is reporting that the 1980s-era 162-unit high-rise at 2555 N Clark St St in Lincoln Park has been sold for $53 million. That pencils out to about $327,000 a unit for the 19-story building whose unit mix is heavily dominated by one-bedrooms.
According to Crain’s the materials marketing the building emphasized “revenue enhancement opportunities,” a shorthand way of saying that the building is in need of updating.
Crain’s highlights several factors that suggest the building will feel little impact from the 1,000s of new units that have recently been added to and are about to come online in the downtown market.
Where values go from here will depend on how well the market weathers a building boom that is adding thousands of units in downtown Chicago. Two positives for 2555 N. Clark: It’s hard to build high-rise apartments in Lincoln Park, and the building’s distance from downtown will limit any negative impact from the supply jump.
“This one should suffer less than stuff in River North…”
Previous cycles that saw a rapid expansion in the supply of new downtown apartments had ripple effects that spiked vacancy levels and depressed rents in the Lincoln Park market.
Two months’ free rent is apparently becoming the norm at the new apartment complexes, making them price-competitive on select units with existing rents at 2555 North Clark. The new buildings, of course, have far more lavish amenities packages.
Will there be room to raise rents at 2555, or is that possibility just wishful thinking?
You can see 100s more of YoChicago’s aerial photographs at Flickr.