A joint venture between Oxford Capital Group, LLC and Quadrum Global has sold Essex on the Park, a 56-story, 479-unit tower in Chicago, which it developed and opened in 2019, to a West Coast-based investment firm. JLL acted as the advisor to the JV and arranged acquisition financing on behalf of the buyer.
At 607 feet, the building is the fourth-tallest building on Michigan Avenue and boasts 392,000 rentable square feet. The Oxford-Quadrum venture retains ownership of the adjacent Hotel Essex, which continues to be managed by Oxford Hotels & Resorts, LLC. Terms of the transaction were not disclosed
“This is a successful financial and gratifying strategic outcome for our team, particularly in the context of the challenging real estate operating and capital market environment prompted by the pandemic,” said John W. Rutledge, founder, CEO of Oxford Capital Group, LLC and Oxford Hotels & Resorts, LLC. “In addition to having the opportunity to comprehensively redevelop the historic Essex Inn and transform it into the luxury lifestyle Hotel Essex, part of what attracted us to this investment was the ability to entitle and develop a high-rise apartment building on the adjacent parcel on what had been a nondescript three story parking garage at essentially a zero net land basis.”
“We are grateful to the city of Chicago for supporting this landmark development,” said Oleg Pavlov, CEO of Quadrum Global. “It was a pleasure to work with Oxford Capital on another joint project. Essex on the Park has already become part of Chicago’s skyline and provided a living environment of the highest quality to hundreds of new residents. We are pleased to see this transaction come through in the midst of a global health crisis, which confirms the long-term institutional value of this asset and enables us to re-deploy equity capital in our development pipeline across the country.”
Essex on the Park is the luxury apartment portion of a destination lifestyle, mixed-use project, including Hotel Essex. Residents of Essex on the Park have convenient access to hotel amenities and services, including a chef-driven three-meal restaurant, Grant Park Bistro, as well as a bi-level hotel-operated food and beverage and nightlife venue overlooking the park and lake, SX Sky Bar, showcasing fully retractable walls.
“We are proud of this mixed use development that has quickly become a home to hundreds of residents, an amenity to the neighborhood and a destination to both Chicagoans and visitors,” said Sarang Peruri, COO of Oxford Capital Group, LLC and partner of Oxford Hotels & Resorts, LLC. “The attractive sale of the apartment parcel in the midst of the pandemic is testament to the property’s success to date and promising long-term potential.”
Essex on the Park is Chicago’s first residential property to achieve WELL Certification by the International WELL Building Institute. Amenities in the apartment tower include a four-story winter garden with indoor pool, resident gathering spaces and outdoor hot tub spa with views of Grant Park and Lake Michigan. Sliding glass walls bring the outdoors in during the warmer months and allow residents to enjoy perpetual summer all winter long. Additional live/work areas include a state-of-the-art fitness center with towel service, indoor/outdoor yoga studio with Fitness-on-Demand technology, party room with access to patio grills, intimate cocktail lounge, game room, and private conference room. Essex also offers valet parking and complimentary bike storage.
