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hicago's commercial property market saw a diverse range of big-ticket sales across various sectors, including retail, hospitality, industrial, and office. This variety could indicate a healthy ecosystem, but the market still faces challenges due to high interest rates dampening demand from buyers and many sellers failing to recoup their initial investments.
Unlike last year when multifamily sales dominated the top deals, this year's transactions were more evenly spread across sectors. The overall dollar volume of Cook County's top 10 commercial sales increased, reaching $1.8 billion compared to $1.4 billion in 2022. However, the office market was plagued by foreclosures, with only one office sale making it into the city's top 10 transactions.
The largest deal of the year was the $508 million sale of the Sheraton Grand Riverwalk Hotel, but a portion of this price was set in stone years ago due to a legal settlement. The No. 2 sale provides insight into Chicago's current CRE darling: data centers. Australia-based HMC Capital paid Prologis $440 million for a property that is being converted into a data center.
Other notable transactions include:
* Bally's Casino acquired land in the River West neighborhood for its new location, with Gaming and Leisure Properties providing $940 million in financing.
* FPA Multifamily purchased a 47-story luxury apartment building at 1326 South Michigan Avenue for $144 million.
* Beacon Capital Partners bought the 36-story riverfront tower at 333 West Wacker Drive for $125 million.
* GD Holdings acquired dozens of condo units in the St. Regis tower for $117 million.
* A California investment firm, FPA Multifamily, purchased a 642-unit complex in Hoffman Estates for $102 million.
* James Letchinger and John Schreiber bought The Parker Fulton Market at a discounted price of $93 million.
* Bridge33 acquired the Woodfield Village Green shopping center in Schaumburg for $93 million.
* R.I.G. Capital purchased the 579-unit Willow Crossing Apartments in Elk Grove Village for $89.3 million.
These transactions demonstrate the diversity and resilience of Chicago's commercial property market, despite challenges from high interest rates and a struggling office sector.
