Luxury Northbrook Apartment Building Sells To New York Investors

NORTHBROOK, IL — A real estate investment company has agreed a deal to buy the 347 apartments in at the NorthShore 770 building. New York-based TGM Associates plans on buying the residential units in the mixed-use development, Crain's Chicago Business reported. Marketed as the premier apartment building in the suburbs, the nine-story apartment building is located just north of Dundee Road beside the Edens Expressway on Skokie Boulevard in Northbrook.

Current owners, Morningside Group of Chicago and Schaumburg-based Crossroads Development Partners hired commercial real estate broker CBRE to sell the property in March. No asking price was disclosed at the time.

Prospective buyers TGM Associates also purchased bought a Wheaton apartment building for more than $110 million in November 2017 in the second-priciest multi-family residential sale of last year. Since 1991, TGM has purchased 132 such developments in 28 states for more than $2.7 billion, according to the company. NorthShore 770 would become the firm's sixth such property in the Chicago area.

The details of the Northbrook sale were not disclosed pending closure of the deal. New apartment buildings have sold for up to $350,000 a unit in recent years, Crain's reported, which would place the sale price at more than $120 million.

The anticipated cost to build the project was $140 million when ground was broken in 2014, according to Crain's. The ownership group sold the retail portion of the development, including a Mariano's and several restaurants, for $68.5 million in November 2016.

According to a promotional brochure from CBRE, the building was 78 percent leased at the time. But a CBRE executive told Crain's the property was expected to be more than 90 percent leased by the time the sale is complete.

North Shore 770 has the highest rents in the suburbs, the brochure said. Units had an average size of 965 square feet and rented for an average of $2,469, which is 6.2 percent above the market average and $2.56 per square foot. Its apartments include 9-foot ceilings, designer bath fixtures and gourmet kitchens. All of its units also have private outdoor terraces or balconies.

Related:

• $28 Million Profit Turned On Glenview Apartment Complex Sale
• $127 Million Apartment Tower Sale Is Suburbs' Most Expensive Of 2017
• $40 Million Paid For Highwood Apartment Building
• NorthShore 770 Breaks Ground in Northbrook
• Trustees Approve $4.9 Million in Public Funds for Northshore 770

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