Related announced today that it has sold OneEleven, a 504-unit ultra-luxury apartment tower located at 111 W. Wacker Drive, for over $328 (328.225) million. At $651,000 per unit, it is the highest amount ever paid for an apartment building in Chicago. The sale comes just three years after Related acquired and redeveloped the high-profile site at Clark Street and Wacker Drive, once slated to house a 90-story Shangri-La hotel and condominium tower.
Construction was halted during the recession, and the partially constructed base of the original tower sat untouched for several years until Related took over the property in 2011. The firm reimagined the site as a 60-story apartment high-rise that introduced a new level of luxury rental housing to Chicago’s Central Business District. Related Midwest redeveloped the property and commenced leasing in spring of 2014.
“The acquisition of OneEleven in 2011 came at a significant discount to replacement cost, making it an ideal fit for our fund management platform, skill set and our fully integrated execution strategy," said Justin Metz, managing principal of Related Fund Management, an investment adviser currently focused on three areas: opportunistic real estate opportunities, origination and acquisition of debt and multifamily housing opportunities. "In just three years, we were able to bring new resources, develop a marquee core asset and maximize value for our partners and investors.”
“OneEleven demonstrates our firm’s ability to identify and secure some of the best development sites in the city, and also our capacity to reimagine these properties in innovative ways,” said Curt Bailey, president of Related Midwest. “By assembling a world-class design and construction team, we were able to take a distressed property along Chicago’s riverfront that, for years, was symbolic of the recession and transform it into a luxury apartment tower that helped put the Loop on the map as one of Chicago’s top residential neighborhoods.”
Designed by New York-based Handel Architects and featuring interiors by Kara Mann Design, the glass-sheathed tower opened in July 2014, offering a mix of studio, convertible and one-, two- and three-bedroom residences, including penthouses, and more than 30,000 square feet of indoor and outdoor amenity space. Today, OneEleven is more than 80 percent leased, making it one of the fastest-leasing apartment developments in the city.
“The remarkable response—reflected first by the quick pace of leasing and, now, the record-setting sale of the building—validates our vision for this site and the Loop as a whole, where a number of new apartment developments are following in the footsteps of pioneering projects like OneEleven,” said Bailey.
OneEleven’s attractive location also helped Related Midwest secure leases for the building’s lower-level commercial space, which totals 32,000 square feet. SoulCycle®, a premier indoor cycling brand with multiple locations in the United States, leased 4,200 square feet for a studio slated to open in the fall—the first in the Loop.
The sale of OneEleven comes as Related Midwest prepares to break ground on a 67-story residential tower at 451 E. Grand, which will be the first Robert A.M. Stern-designed building in Chicago. Related Midwest also plans to develop 400 Lake Shore Drive, the site of the former Chicago Spire project.
Related Midwest, the Chicago office of Related Companies, is the preeminent developer of luxury condominium and rental homes, affordable housing communities and mixed-use properties in Chicago. Recognized for its innovative, market-defining developments, Related Midwest has reshaped luxury living in downtown Chicago through its two high-end apartment projects: 500 Lake Shore Drive and OneEleven. The firm is also marketing South Loop Luxury by Related, three marquee South Loop condominium properties. Among Related Midwest’s successes in the downtown Chicago area are The Residences on Lake Shore Park (comprising 840 Lake Shore Drive, The Pearson and The Belvedere), the Park Hyatt Hotel and Park Tower Condominiums at 800 N. Michigan Ave. and 340 on the Park at 340 E. Randolph St., the first LEED Silver residential tower in the Midwest.