Green Cities, an Oregon-based company, has acquired the 329-unit rental apartment building at 210 N. Wells St. in Chicago’s Loop from a joint venture between Chicago-based developer Jay Javors and the real estate investment subsidiary of the National Electrical Benefit Fund (NEBF). Although sale price was not disclosed, Crain’s Chicago Business reported it to be $98 million – 20% less than what Javors and NEBF had invested when they developed it in 2008. In addition to this acquisition, Green Cities also took over ground lease on land underneath property.
The downtown apartment market remains strong; however last year’s jump in interest rates cast a chill over entire commercial real estate sector which drove up borrowing costs and lowered purchasing power of investors as per Crain’s reportage . Lenders have become more conservative making financing difficult for investors on favorable terms.
