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Chicago high-rise apartment complex, Upshore Chapter, is facing foreclosure after its owners failed to meet debt payments and were unable to sell the property before its loan matured. Built by CRG in 2019 at a cost of $30.7 million, the 149-unit building features luxury amenities such as a rooftop deck and dog salon. The firm refinanced the property with a securitized loan in 2021 but was unable to secure a buyer when it listed the property for sale last summer.

    The loan's troubles may be linked to floating rate debt, which has caused problems for numerous multifamily properties in the Chicago area as interest rates have risen. Despite recent federal reserve rate cuts, many properties are still struggling to make payments. The city's downtown market is particularly challenging due to concerns about Cook County's property tax environment.

    However, not all news is bad for the urban core. A new development proposal was recently approved by the Chicago Plan Commission to build a 32-unit apartment building in Uptown at a cost of $297,000 per unit. This comes as suburban areas like Chicago and Miami are experiencing strong multifamily growth, with RentCafe ranking them as the top markets in the country.

    Meanwhile, some urban properties have struggled to sell, including a West Loop apartment building that sold for 20% less than its original price. The contrast between the city's downtown market and suburban areas is becoming increasingly apparent, with investors showing more interest in suburban locations due to concerns about property taxes and construction costs.