Waterton Acquires 600-Unit Apartment Community in Downtown Chicago
CHICAGO (June 21, 2018) – Waterton, a national real estate investor and operator, today announced it has acquired North Harbor Tower, a 600-unit rental community located in the Lakeshore East neighborhood in downtown Chicago.
Built in 1989, the 55-story high-rise at 175 N. Harbor Drive offers a mix of studio, convertible, one-, two- and three-bedroom apartments ranging in size from 483 to 1,785 square feet. Units feature open floor plans, bay windows and designer finishes. Shared amenities include an indoor pool, sun deck with grilling/picnic area, business center, 24-hour gym and separate fitness studio. The building has 440 parking spaces.
“North Harbor Tower offers tremendous views of Lake Michigan and convenient access to the central business district and a trio of Chicago’s most popular downtown recreational spaces: Millennium Park, Maggie Daley Park and Grant Park,” said Matt Masinter, senior vice president of acquisitions at Waterton. “The influx of jobs to the downtown core, along with demand for more attainable rental housing, made for an attractive investment.”
Over the coming months, Waterton plans to implement a capital improvement program to upgrade 523 non-renovated or partially renovated units to a consistent and modern finish level. The plan includes full hallway renovations, updates to the pool area and outdoor terrace, and aesthetic improvements to the community’s elevator cabs.
“In addition to identifying assets with upside potential, we look for properties with unique attributes that serve as a point of differentiation in the market,” said Masinter. “North Harbor Tower in particular has a high number of large three-bedroom floor plans compared to competitors in the immediate area, and we’re seeing demand for these units from both families and empty nesters.”
North Harbor Tower is immediately adjacent to the 6-acre Lakeshore East Park and a 102,000-square-foot retail center anchored by a Mariano’s grocery store. Located at the corner of East South Wacker Street and North Park Drive, the property is accessible from the east via Randolph Street. Connectivity with Upper Wacker Drive to the north is expected upon the completion of Vista Tower, a 1,191-foot development slated for completion in 2020.
In addition to being a short walk from the central business district, residents of North Harbor Tower are steps from the Chicago Riverwalk and a wealth of high-end shops and restaurants along Michigan Avenue. Nearby cultural attractions include the Loop theater district, Art Institute and Chicago Symphony. The 18-mile Lakefront Trail along the Lake Michigan shoreline, popular with runners and bicyclists, is just east of the building across Lake Shore Drive.
North Harbor Tower marks Waterton’s sixth acquisition on behalf of its latest multifamily value-add investment fund, Waterton Residential Property Venture XIII, L.P. (“Venture XIII”), with $920 million of equity commitments.
With the acquisition of North Harbor Tower, Waterton will have nine rental communities in Chicagoland totaling over 4,900 units, including Presidential Towers, the city’s largest apartment community with 2,346 units.
Waterton is a real estate investor and operator with a focus on U.S. multifamily and hospitality properties. Founded in 1995, Waterton executes value-add strategies and manages a national portfolio of multifamily and hospitality properties on behalf of institutional investors, family offices and financial institutions. Waterton is privately held and is headquartered in Chicago with regional teams throughout the United States. As of March 31, 2018, Waterton’s portfolio includes approximately $4.0 billion in real estate assets, including 40 multifamily investments totaling approximately 12,800 units and 8 hotels with more than 2,000 rooms. Visit Waterton’s website: www.waterton.com.