JLL Capital Markets secured a $25.22 million refinancing for Chateau on Wells, a 43-unit luxury boutique apartment community in downtown Chicago.
JLL represented the borrower, Akara Partners, in arranging the three-year, floating-rate loan through D2 Residential.
The property features a fully stabilized, 2016-built midrise apartment building with one in-line retail suite located at 707 N Wells St. in the heart of the River North entertainment district. With current physical occupancy at 95%, Chateau on Wells offers breathtaking views of downtown Chicago and condo-quality modern apartment living with 43 luxurious rental units averaging 1,059 square feet and $4,091 per month in rent.
Ideally situated in River North, the property provides immediate pedestrian access to the Magnificent Mile retail corridor, which ranks among the top three in the United States by sales volumes. Residents also enjoy proximity to the Chicago Riverwalk, the second largest metro system in the country and some of Illinois’ most popular beaches. The neighborhood has transformed from a former warehouse district into one of Chicago’s most trendy areas, featuring the largest concentration of art galleries outside of Manhattan, world-class restaurants and buzzing nightlife.
The financing comes at a time when Chicago’s multifamily market stands among the most supply-constrained in the nation. With only 9,200 units currently under construction representing just 1.6 percent of total inventory – far below the national average of 2.7 percent – limited pipeline has fueled rent growth of 3.9 percent for Class A properties over the past 12 months. Downtown Chicago has recorded even stronger metrics, with rent growth for Class A assets at 5.0 percent and vacancy rates at just 5.1 percent.
JLL Capital Market’s Debt Advisory team was led by Managing Director Jesse Wright, Directors Joshua Odessky and Sam Tarter and Analysts Miguel Pedersen and Ben Banzhof.
