Chicago Student Housing Asset Sells for $85M

A New York City-based investor has parted ways with a 330-unit student housing community in Chicago’s South Loop.
777 South State

777 South State

Atlas Real Estate Partners, together with its partners, Marc Realty Residential and Angelo Gordon, announced the sale of 777 South State, a 28-story student housing building at 2 E. 8th St. The asset sold for $85 million to an undisclosed buyer, in a deal brokered by CBRE’s John Jaeger and Colin Hebson of Dream Town Realty.

The joint venture between Atlas and its partners acquired the 31-year-old property back in 2013 for $59 million, and also undertook renovation work at the site. The 882-bed building caters to students from nearby Columbia College and Roosevelt University, among many others.

According to Yardi Matrix, 777 South State includes one- and two-bedroom residential units, fitness and business centers, a swimming pool, and clubhouse. The property also features 20,000 square feet of ground-floor retail and 206 enclosed parking spaces.

“This deal was an excellent transaction for Atlas as it allowed us to utilize both our student-housing and repositioning experience to add value to an iconic asset located in a supply constrained submarket,” Arvind Chary, managing principal at Atlas, said in a statement.

Image courtesy of Yardi Matrix