A
New York-based investor has acquired the Webster House Apartments in Lincoln Park's 2150 North Lincoln Park West for $55 million. The purchase price works out to $296,000 per unit, expanding Jonathan Rose Companies' Chicago portfolio to 2,346 units. JPMorgan Chase provided financing of $31.5 million, with $7 million allocated for immediate property improvements.

    The acquisition is part of the company's mission to preserve and enhance affordable housing in high-opportunity areas like Lincoln Park. Renovations are planned for early next year, in partnership with Prairie Management & Development, and will include roof replacement, façade repairs, modernized elevators, plumbing repairs, and lobby enhancements.

    Chicago's multifamily investment market remains strong due to high demand for apartments and a limited development pipeline. However, some properties have fallen into distress due to floating-rate debt affected by interest rate hikes and unpredictable property taxes. Despite this, rent growth is ticking up, with Class A apartments in central neighborhoods averaging $3.61 per square foot in the third quarter, a 2.3 percent increase from the same period last year.

    Jonathan Rose Companies' chief investment officer, Nathan Taft, said the acquisition aligns with their focus on securing multifamily housing that is fully affordable or offers mixed-income, rent-subsidized, or naturally occurring affordable units.