CIM Group Sells Interest in Downtown Chicago Apartment Tower for $265M
CHICAGO — CIM Group has sold its interest in Marquee at Block 37, a 34-story, 691-unit multifamily tower in downtown Chicago, for $265 million. Morguard North American Residential REIT (TSX: MRG.UN), a subsidiary of Morguard Corp., acquired the 51 percent interest.
The community offers a mix of studio, one-, two- and three-bedroom floor plans ranging from 650 to 2,100 square feet. Communal amenities include an outdoor pool, sundeck, fire pits, rooftop hot tub, dog run, dog washing station, fitness center, event room, business center and an outdoor terrace overlooking State Street.
Ontario, Canada-based Morguard Corp. was CIM’s investment partner for Marquee at Block 37, and as such already owned a 49 percent stake in the development. Morgaurd Corp. and Morguard REIT now have an equal partnership in the property.
CIM developed the community in 2016 above the four-story Block 37 shopping center at 25 W. Randolph St. The 275,000-square-foot retail property includes shopping, dining and entertainment options, including an 11-screen AMC Dine-In Theatre, to which residents of Marquee at Block 37 have private elevator access.
The transit-oriented property is connected to the Loop, granting residents direct access to the red and blue CTA lines as well as the city’s pedway system.
“Our investment in this ideally located premium property is poised to further benefit from strong rental apartment demand in Chicago’s core,” says K. Rai Sahi, chairman and CEO of Morguard. “We are excited to add to our ownership of this prominent property as we continue to augment our presence in this strategic market.”
The buyer received a $165 million acquisition loan from an undisclosed lender. The 10-year loan features a 3.3 percent interest rate.
Headquartered in Los Angeles, CIM Group is a privately held company established in 1994 as a real estate and infrastructure owner, operator and lender. Since its inception, the firm has led more than $60 billion of projects in metropolitan communities across the Americas on behalf of its own account and for its partners and co-investors.
Morguard Corp.’s stock price closed at $17.78 per share Thursday, down slightly from $18.25 per share one year ago.
— Alex Tostado