Apartment Investment Advisers (AIA) arranged the sale of a luxury, five-story, 32-unit apartment complex at 2050 Clark Street (Twenty Fifty) in Lincoln Park for $20,500,000 or more than $640,000 per unit, a new per unit record for mid-market multifamily property in Chicago. The seller was the developer, Novak Construction Company (Novak), and the buyer was HP Ventures Group-Development Services LLC (HP).
The record-breaking sale of Twenty Fifty underscores the recent momentum for Chicago as a whole, and for multifamily product in the neighborhoods, which is experiencing the first year of what many landlords expect to be a robust rental market for years in the City’s neighborhoods.
Novak developed the property in 2018. The building features one-, two- and three-bedroom floor plans ranging from 780 to 1,750 square feet. Most units feature private balconies, and all are equipped with high-end finishes and appliances. Twenty Fifty also features indoor parking spaces for 31 resident vehicles and 20 bicycles.
The quality of construction of Twenty Fifty and its prime Lincoln Park location attract a tenant base that prefers renting to buying. Rents at the building range from $3,000 to $7,000 per month. At the time of the sale, Twenty Fifty was 100% leased.
“After a successful 2021, in which HP Ventures Group grew its portfolio by 75%, we continue to see value in the Chicago multifamily market, particularly in our niche of stabilized, recently constructed properties,” said HP Managing Partner Steve Cook. “The North Clark Project, located along the transit nodes and just steps away from the Park and Lake Michigan activities, is a great example of our strategy to serve tenants who prefer to rent high-quality units in excellent locations.”
Cook added that multifamily developers see HP as a reliable, reputable buyer of their stabilized properties, which allows them to recycle their capital into new projects.
Novak also was the general contractor for Twenty Fifty and provided comprehensive pre-construction services. During the design phase, Novak was responsible for neighbor and local government coordination and approvals, conceptual estimating as well as value engineering.
