Hines Acquires $73 Million Multifamily Property in Chicago
Hines Global Income Trust Inc. has acquired EMME, a multifamily asset located in Chicago’s “West Loop” submarket for approximately $72.6 million, exclusive of transaction costs and closing prorations.
Willowick Residential, Hines’ multifamily property management firm, which manages more than 2,000 multifamily units in Chicago, will assume the role of property manager.
Located at 165 N Des Plaines Street, EMME is a 14-story, 199-unit Class A multifamily development that is 96% leased. The property includes studios, one-bedroom, and two-bedroom units with various finishes including Italian cabinetry and quartz countertops with porcelain panel backsplashes, engineered wood floors, high-efficiency LED lighting and domestic stone vanities. EMME features various amenities including a rooftop pool with cabanas, a fitness center and yoga studio, a club room with a chef’s kitchen and an outdoor terrace with grilling stations. Additionally, the asset has immediate proximity to West Loop’s fitness studios, dining scene, grocers, offices, and hotels.
“The West Loop is an appealing submarket in Chicago where multifamily demand has continued to increase,” said David Bach, managing director at Hines. “EMME is a high-quality asset situated in a prime location that is within walking distance to the live-work-play amenities of Fulton Market, the West Loop trophy office corridor, and the central transit hub.”
Hines says EMME’s certifications include LEED Gold, ENERGY STAR, Fitwel Viral Response, and the 2019 Merit Award for Residential Design from the American Society of Landscape Architects, Illinois Chapter.
“EMME’s strategic location in the vibrant West Loop and its exceptional boutique Class-A profile make it a compelling multifamily investment opportunity,” said Alfonso Munk, Hines’ chief investment officer of the Americas and president of HGIT. “With Chicago’s multifamily sector witnessing robust occupancy and rental rates, this asset is ideally positioned to capitalize on continued growth and demand. HGIT will continue to adhere to a disciplined investment strategy, remaining patient during periods of capital market volatility in an effort to secure superior opportunities at favorable prices.”
Including EMME, HGIT has a $3.9 billion portfolio of commercial real estate investments that is more than 62% weighted toward the living and industrial sectors.
The company says EMME is a “milestone acquisition” for the Hines Midwest region portfolio, which totals over 23 million square feet that the firm owns or manages, and more than 2,000 multifamily units developed in Chicago, Illinois.
As of March 31, 2023, Hines Global Income Trust owned direct real estate investments in 38 properties totaling 16.5 million square feet that were 95% leased. The company launched its third public offering of up to $2.5 billion in shares of its common stock on June 2, 2021, through which it is offering up to $2.5 billion in shares of common stock including $500.0 million of shares offered under its distribution reinvestment plan. As of May 16, 2023, the company had received gross offering proceeds of approximately $1.6 billion from the sale of 148.6 million shares through its public offerings, including shares issued pursuant to its distribution reinvestment plan.
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