Argosy Real Estate Partners IV and its parallel Funds (AREP IV), in a joint venture with 3L Real Estate, acquired a vacant 129,000-square-foot office building on Michigan Avenue in the South Loop submarket of Chicago.
The property will be converted to 150 units and 5,000 square feet of ground-floor retail.
AREP IV's all-in basis after conversion will be significantly below both replacement cost and comparable trades of multifamily properties in downtown Chicago.
The business plan is to deliver a high-quality, affordably-priced living option on a prime infill site targeted to the growing population of young professionals who value cost savings and seek to live in the highly-amenitized and increasingly desirable South Loop neighborhood.
