L
ondon-based Legal & General is reportedly in advanced talks to acquire the 350-unit Arkadia West Loop apartment tower at 765 West Adams Street in Chicago's West Loop. The U.K. financial services firm would gain a flagship property in one of Chicago's most sought-after neighborhoods if the deal is completed.
The potential acquisition follows Legal & General's recent $200 million commitment to a value-add multifamily fund with Boston-based Taurus Investment Holdings, aimed at supporting acquisitions across the country. The 35-story Arkadia West Loop was completed in 2015 by PGIM and Chicago-based White Oak Realty Partners, before being acquired fully by PGIM.
Chicago's real estate market is experiencing a period of correction due to rising borrowing costs and broader market uncertainty, leading to lower valuations for large apartment properties. For example, Blackstone's Parker Fulton Market tower sold for $93.3 million earlier this year, down from its 2017 sale price of $111.4 million.
Despite these challenges, the area's multifamily market is seeing strong demand, with developers like Sterling Bay shifting office plans to a 39-story multifamily project at 350 North Morgan Street. The acquisition would be managed by Newmark brokers Liz Gagliardi, Chuck Johanns, Susan Lawson, Bishop Polizzotto and Joe Raucci.
