B
rookfield Properties is looking to sell two residential properties in Chicago's South Loop area. The properties include the Sky55 at Central Station, a luxury tower with 411 units at 1255 South Michigan Avenue, and an adjacent senior housing building with 91 units at 1251 South Michigan Avenue. The properties are being marketed by Berkadia's Pete Evans and Richard Evans.

    Sky55 was built in 2006 and features 326 market-rate apartments and 85 affordable units with one- and two-bedroom layouts. It boasts an average unit size of 980 square feet and a 98 percent occupancy rate. The senior housing building offers studio and one-bedroom units designated as affordable housing for seniors, with an average unit size of 570 square feet.

    The decision to list these properties might be influenced by recent high interest rates that have tempered downtown Chicago's real estate sales. However, the city's consistent rent growth keeps it attractive to investors. The potential decrease in borrowing costs signaled by Federal Reserve Chair Jerome Powell could encourage more investors to act.

    Brookfield's decision to list these properties follows its recent sale of a 68,000-square-foot retail and office building on Chicago's Magnificent Mile for $47 million, or $691 per square foot. The buyer, local firm North American Real Estate, acquired the property at a 66 percent discount from its 2016 sale price of $140 million, or $2,058 per square foot.

    The listing signals that Brookfield is testing investor interest amid evolving market conditions. The firm declined to comment directly on the sale, but the listing indicates that they are offloading properties to adapt to changing market conditions.