News Summary

Chicago’s real estate sector sees a notable change as Sterling Bay and Magellan Development Group sell the Millie on Michigan tower to Cedar Street and Kayne Anderson Real Estate. This 47-story mixed-use building features 289 luxury apartments and retail space, marking a significant deal amidst ongoing multifamily sales in the city. The property, located on Michigan Avenue, underscores evolving trends in Chicago’s housing market, particularly in luxury segments and supply constraints.

Chicago Developers Sell Millie on Michigan Tower

Chicago – A significant real estate transaction has occurred in the heart of Chicago as developers Sterling Bay and Magellan Development Group have sold the Millie on Michigan tower, a 47-story mixed-use building located at 300 N. Michigan Ave. The residential and retail portions of the development have been acquired by Cedar Street and Kayne Anderson Real Estate.

The deal includes 289 luxury apartment units and 25,209 square feet of retail space situated at the base of the tower. The sale price of this transaction has not yet been disclosed in online property records.

Importance of the Sale

This transaction is part of a broader trend in Chicago’s real estate market, marking a significant continuation in the sales of major apartment towers for 2025. Prior to this deal, the city had recorded $1.8 billion in multifamily sales. In a related transaction, the 375-unit Fulbrix tower located in the Fulton Market area sold for $170 million, establishing itself as the highest-priced multifamily sale in Chicago since 2023.

Before the sale of Millie on Michigan, the majority of the retail space was reported as vacant while the apartments boasted an impressive 96% leasing rate.

Project Background

The construction of Millie on Michigan commenced shortly after the COVID-19 pandemic began. Its financing involved several significant lenders, including Bank OZK, Pearlmark Real Estate Partners, Monroe Capital, and equity investment from Wanxiang America Real Estate Group.

Furthermore, developers had secured a $75 million agreement with the hotel brand citizenM for a 280-room hotel within the tower, which successfully opened in late 2022. Following this, the developers refinanced the remaining property with a substantial $210 million in new debt secured from JPMorgan Chase Bank.

Market Implications

The acquisition by Cedar Street and Kayne Anderson is noteworthy as both companies have histories primarily focused on property conversions, making this a unique opportunity to invest in a newly constructed tower. The implications of this sale resonate with broader trends in Chicago’s multifamily real estate market, particularly concerning rising rents and a constrained supply of available housing options.

The Millie on Michigan development location is vital, as it contributes to the modern luxury segments of the Magnificent Mile area in Chicago, known for its historical significance and commercial vibrancy.

In summary, the sale of Millie on Michigan represents not only a significant transaction in the Chicago real estate market but also showcases evolving trends in multifamily housing, with key players stepping into the arena to address the challenges of supply and demand.

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Author: HERE Grand Rapids

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