Source: Bluerock Enhanced Multifamily Trust / #Multifamily #Apartments
CHICAGO, IL - Bluerock Enhanced Multifamily Trust (BEMT) has announced its investment in a 24-story mixed-use luxury rental community known as the MDA City Apartments in downtown Chicago. BEMT partnered with the building’s owner, Village Green, a leading owner / operator with a portfolio of 40,000 units in 13 states, and a top-ranked property manager (CEL & Associates Survey). The property includes 190 residential dwellings and 8,238 square feet of storefront retail (restaurant and specialty store).
“MDA presented a unique, off-market opportunity to purchase an interest in a stable, well-occupied, core urban infill project in a primary market with a top partner,” said James Babb, Bluerock Senior Managing Director and Chief Investment Officer. “By recapitalizing and streamlining what had been a fairly complex capital structure we were able to seize on a valuable opportunity at below-market cost.”
Vacancy rates in the property’s downtown Chicago submarket have been falling rapidly since 2008 and are forecast to remain at their current level of 5% for the near-to-mid-term, based on research from REIS. Bluerock Management also believes that the submarket’s effective rents, which have been growing since 2010, bode well for BEMT’s investment.
Completed in 1927 by designer Daniel Burnham, Jr., the Medical and Dental Arts Building (or “MDA”) underwent a high-profile $45 million conversion in 2006, transforming the historic space into an innovative and critically acclaimed Class A, LEED-certified mixed use development.