Crescent Heights Lists Chicago Streeterville Apartment Tower

Just under two years after acquiring one of downtown Chicago’s largest rental towers, Crescent Heights is testing the market by listing it.

The asking price hasn’t been disclosed for the 398-unit North Water Apartments, perched above the Loews Hotel at 340 East North Water Street, Crain’s reported.

Miami-based Crescent Heights purchased the multifamily component of the building in June 2023 for $173 million ($435,000 per unit), a bargain compared to its $240 million trade in 2016.

Newmark brokers Liz Gagliardi, Chuck Johanns and Susan Lawson are marketing the listing.

The property’s positioning as a 93 percent leased luxury asset in one of the city’s tightest rental submarkets may help insulate it from broader investor caution. Its average rent is $3,574 per unit or $3.93 per square foot, according to marketing materials.

Streeterville has seen limited new supply over the past five years, with only one apartment tower delivered last year. Fewer than 300 units are expected to be delivered downtown this year, tightening occupancy and pushing up rents, according to Integra Realty Resources.

One potential draw for buyers is assumable debt. Crescent Heights secured a $112 million Freddie Mac loan on the building last year at an interest rate of 5.45 percent, maturing in July 2028. The ability to assume that mortgage could offer relief from higher rates and make the property more appealing to prospective investors.

It was built in 2015, and the 500-room Loews Hotel is owned separately. Crescent Heights has not commented on the listing.

The firm, led by Sonny Kahn, Russell Galbut and Bruce Menin, has been active on both sides of Chicago’s multifamily market. It recently won approval for a 53-story apartment tower in Fulton Market and is converting two nearby Streeterville properties — the Seneca and 850 North Lake Shore Drive — into condos, following deeply discounted acquisitions.

— Judah Duke