Morguard Corp. Acquires LEED Gold M-F Complex in Chicago for $300M
- Dec 03, 2012
By Keith Loria, Contributing Writer
Morguard Corp., an Ontario, Canada-based investor, agreed to purchase Alta at K Station, an 848-unit multi-family complex in Chicago’s West Loop, for $300 million, with the acquisition expected to close at the end of December.
Located at 555 West Kinzie St., the property consists of two towers built on an eight-level parking and retail podium with 848 residential units, 700 above-grade parking stalls and 12,000+ square feet of high-street retail.
“This opportunity allows Morguard Corporation to expand its footprint in the U.S. and execute on our U.S. growth strategy to acquire high-quality core assets,” Rai Sahi, Morguard Corporation’s Chief Executive Officer, said. “We’re building on our successful track record of ownership and management of real assets to deliver shareholder value.”
The 37-story and 41-story towers were completed for occupancy in 2010 and currently have an occupancy rate of approximately 94 percent.
Alta at K Station offers studio, one-, two- and three-bedroom eco-friendly units and is LEED Gold certified.
Residents will have access to a 32,000-square-foot club featuring a professional fitness center, sun terrace, business center, party suite, lounge, home theatre and swimming pool.
Alta at K Station sits directly on the city’s urban rail system on a 1.7 acre site.
Morguard expects to finance the purchase of Alta at K Station with a mortgage in the principal amount of approximately $200 million for a term of 10 years, bearing interest at 3.29 per per annum; and other available sources of funds. The deal amounts to $353,774 per unit.
Morguard will assume management of the complex on March 1, 2013.
It’s been a busy fourth quarter for Morguard this year, as the company has acquired more than $700 million worth of property in that time, including a 95 percent equity interest in the Toronto Airport Marriott Hotel.
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