Morguard North American Residential REIT Completes Acquisition of Luxury Residential Complex in Downtown Chicago
The REIT has purchased Echelon Chicago, a premium multi-suite residential property located in Chicago's trendy Fulton River District
MISSISSAUGA, ON, Aug. 18, 2022 /CNW/ - Morguard North American Residential REIT (TSX: MRG.UN) (the "REIT") recently acquired Echelon Chicago, a Class A multi-suite residential complex, in downtown Chicago. Located on Desplaines Street, the Echelon Chicago has broad ranging appeal as a rental residence with its close proximity to major employers, restaurants, shopping, and entertainment venues.
The transaction closed at a purchase price of US$133.0 million, excluding closing costs. Concurrent with the acquisition, the REIT completed mortgage financing on the property in the amount of US$74.7 million for a seven-year term at an interest rate of 4.71%.
"We are excited to again expand our footprint in Chicago by acquiring this best-in-class, multi-suite property," said Rai Sahi, Chief Executive Officer, Morguard North American Residential REIT. "This acquisition supports Morguard's North American growth strategy to acquire high-quality core assets. We are building on our successful track record of ownership and management of real assets to deliver unitholder value."
Echelon Chicago is a 39-storey, high-rise apartment building located in the Kinzie Station neighbourhood of Chicago's West Loop. It features 350 luxury apartments, 280 parking spaces and extensive best-in-class amenities including a resort style pool and sundeck, cardio and fitness centre, business centre and grilling stations. The property has studio, one, and two- bedroom apartments, with an average unit size of 786 square feet featuring upscale finishes and Chicago skyline views from all vantage points. The building is an Equitable Transit Oriented Development, with convenient access to public transit, freeways and is a true walk-to-work location. Echelon Chicago is adjacent to the Park at K Station, a one-acre public park with a spacious dog run, and surrounded by many clubs, museums, and restaurants, including West Loop's Restaurant Row and Greek Town.
"Echelon Chicago's condo-quality amenities and desirable location make it an excellent addition to our US multi-suite residential portfolio," said John Talano, Senior Vice President, US Operations. "Apartments are in demand in this sought-after neighbourhood making Echelon Chicago an excellent long-term investment opportunity."
The acquisition represents the continued expansion of the Morguard group's Chicago portfolio, which now comprises ownership and management of 2,403 apartment suites, valued at CAD$1.1 billion. In addition to Echelon Chicago, Morguard's high-rise multi-suite residential assets in the city include Alta at K Station, Coast at Lakeshore East, and Marquee at Block 37, also located in the Loop area.
The REIT is an unincorporated, open-ended real estate investment trust established under and governed by the laws of the Province of Ontario. The Units of the REIT trade on the Toronto Stock Exchange under the ticker symbol MRG.UN. With a strategic focus on the acquisition of high-quality multi-suite residential properties in Canada and the United States, the REIT maximizes long-term Unit value through active asset and property management. The REIT's portfolio consists of apartment communities located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia, and Maryland. For more information, visit the REIT's website at www.morguard.com.
SOURCE Morguard North American Residential REIT
K. Rai Sahi, Chairman and CEO, T 905-281-3800; Christopher A. Newman, Chief Financial Officer, T 905-281-3800; John Talano, Senior Vice President 504-904-8522, or email [email protected]
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