G
D Holdings has made a significant move in Chicago's luxury real estate market by acquiring dozens of condo units in the St. Regis tower at 363 East Wacker Drive. The Denver-based firm, which partnered with Gencom to purchase the hotel last year for $134 million, has paid Magellan $117 million for 84 condos out of a total of 393 units built within the property. This deal was financed with a $110 million loan from JP Morgan Chase.

    The acquisition is notable given the current state of the downtown Chicago condo market, which is experiencing a downturn due to high interest rates and crime concerns. Luxury condos have seen significant price reductions, but some buildings are showing signs of recovery in demand for downtown living. Rafael Murillo, a Compass agent who has worked with clients buying and selling units in the St. Regis, expects GD Holdings to consider renting out some of the units until the market turns around.

    The deal also helps relieve pressure on Magellan, which had taken out a $149 million mortgage loan last year using 147 unsold condo units as collateral. The developer's move is seen as a strategic one, given its experience in luxury hospitality and previous deals for Four Seasons hotels in Denver and Nashville.