KALTA AT STATION - CBRE Marketplace
KALTA AT STATION - CBRE Marketplace
KALTA AT STATION - CBRE Marketplace
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OWN THE WEST LOOP<br />
An 848-Unit LEED ® Gold Certified Apartment Investment<br />
in 37 & 41 Story Towers, completed in 2010 | Chicago, Illinois<br />
<strong>KALTA</strong> <strong>AT</strong><br />
ST<strong>AT</strong>ION<br />
Capital Markets | Institutional Group
East view from Alta amenity deck<br />
CB Richard Ellis’ Institutional Multi-Housing Group is pleased to announce the sale of Alta<br />
at K Station, a 2010 constructed, two-tower multi-housing property containing 848 luxury<br />
apartments (87% leased), 13,410 square feet of ground floor retail (46% leased), and a 695-car<br />
parking garage, located in Chicago’s trendy West Loop neighborhood.<br />
Investors can literally own a “controlling interest” of Chicago’s<br />
West Loop rental submarket with the acquisition of Alta at K<br />
Station, the largest apartment investment opportunity presented<br />
in Chicago in over four years. This core-quality investment provides<br />
investors with the flexibility to achieve significant economies of<br />
scale by purchasing Alta at K Station, an 87% leased, 848-unit<br />
two-tower luxury apartment building with 13,410 square feet of<br />
retail space, which opened in 2010.<br />
The two towers are staggered, providing exceptional views from<br />
all tiers of both towers. Alta’s 33,000-square-foot outdoor and<br />
15,000-square-foot indoor amenity deck is unmatched and has<br />
recently been coined the “South Beach of Chicago.” Additionally,<br />
Alta is the country’s largest LEED Gold certified residential<br />
community, appealing to the environmentally conscious renters<br />
and investors of today’s market.
Location<br />
Alta is located in the Kinzie Station neighborhood of Chicago’s West<br />
Loop submarket. Kinzie Station is a master-planned development,<br />
which is not only within walking distance to Chicago’s CBD and a<br />
major concentration of office buildings (and thus, jobs), but also to<br />
fine dining and Chicago’s hottest nightlife. Alta is a Transit Oriented<br />
Development (TOD), located only steps from Ogilvie Transportation<br />
Center, Union Station, several “El” train stops, convenient 90/94<br />
Interstate access via Lake Street, and also within 20 miles of<br />
Chicago’s O’Hare and Midway Airports. Alta offers a true walk-towork<br />
location for those residents working in the Loop, River North<br />
or West Loop, as well as residents who need convenient access to<br />
the freeway system.<br />
Residents enjoy the convenience of the Jewel/Osco grocery store<br />
one block west of the property, in addition to a dog run and a oneacre<br />
park, where monthly summer movie nights bring hundreds<br />
of nearby residents to enjoy the neighborhood. The park and<br />
surrounding buildings create view corridors that are spectacular<br />
and will be forever protected.<br />
Strong Fundamentals<br />
Downtown Chicago’s apartment market continued to achieve<br />
impressive gains in 2011, as fundamentals improved significantly<br />
in the 2Q2011 time period. It is clearly a landlord’s market and<br />
will continue to be so for the foreseeable future. According to<br />
Appraisal Research Counselors (ARC), market wide occupancies<br />
are above 95%, deliveries have ceased, record breaking demand<br />
continues, and rent spikes are occurring. Landlords are becoming<br />
increasingly aggressive and pushing renewals and new leases<br />
5-15% above previous levels. Validating this, in the Luxury Rental<br />
Segment, ARC reported a 12.61% increase in effective rents on<br />
a year-over-year basis.<br />
Chicago experienced positive job growth in 2010 and the region’s<br />
economy should continue to grow with the expansion of new<br />
offices to the downtown market. As of 2Q11, Chicago’s downtown<br />
office vacancy reached a 24-month low and is currently reported<br />
at 14.5%. The office vacancy rate has dropped for four straight<br />
quarters from where it stood a year ago and it is anticipated that<br />
this decline will continue as companies expand their workforce and<br />
require larger offices. Expansion within the West Loop submarket<br />
is even more likely, as this is virtually the only submarket with<br />
nine large land sites available, allowing for 10 million square<br />
feet of new office space for approximately 30,000 employees.<br />
These sites are available for anchor tenants, which could lease a<br />
large portion of a new office development containing the latest<br />
technologies and operating efficiencies. Alta will benefit greatly<br />
with West Loop office expansion, as many residents desire the<br />
walk-to-work convenience, in addition to several surrounding<br />
options for public transportation and interstate access.<br />
Economies of Scale<br />
Significant economies of scale and operating efficiencies<br />
are realized with 848 apartments. Some examples include:<br />
lower payroll, advertising, management fee and vendor pricing<br />
compared to smaller sized buildings.<br />
LEED Gold Certification<br />
In 2011, Alta was named the nation’s largest residential<br />
development to achieve LEED Gold Certification. The designation<br />
is awarded by the US Green Building Council and is based on<br />
credits achieved in five key areas of human and environmental<br />
health: sustainable site development, water savings, energy<br />
efficiency, materials selection and indoor environmental quality.<br />
As a LEED Gold certified building, Alta is designed to lower<br />
operating costs, reduce waste, conserve energy and water, and<br />
reduce harmful greenhouse gas emissions. Alta is also a nonsmoking<br />
community.
Unmatched Amenities<br />
Alta at K Station provides unmatched resident amenities, including<br />
a 15,000-square-foot indoor and a 33,000-square-foot outdoor<br />
amenity area on the 8th floor of the building, which connect the<br />
East and West Towers. Unique building amenities include:<br />
• Outdoor, resort-style, 26’x82’ swimming pool and 5’x10’ spa<br />
• Expansive landscaped sundeck with fire pit, cabanas and<br />
barbeque grills<br />
• Full court basketball / volleyball court with scoreboard /<br />
(multi-purpose room)<br />
• 22 seat sloped floor stadium style theater with 120-inch screen<br />
and 5.1 surround sound<br />
• Concierge director with services provided 24/7<br />
• Weekly group exercise classes, including yoga and Pilates<br />
• Private party suite with full kitchen, ideal for personal gatherings<br />
or resident functions<br />
• Cardio and fitness center with state-of-the-art Technogym and<br />
Precor equipment<br />
• iPod docking stations throughout the 8th floor<br />
• Flat screen TV’s throughout 8th floor<br />
• Cyber café with beverage service<br />
• Men’s and Women’s locker rooms, each with a sauna room<br />
• Clubroom with wet bar and billiards table<br />
• Resident lounge with gaming consoles<br />
• Business center furnished with both Mac’s and PC’s, copier,<br />
printer and fax<br />
• Dry cleaner / package room in each tower<br />
• Located adjacent to the Park at K Station, a one-acre public<br />
park, which also includes a spacious dog run<br />
• <strong>AT</strong>M<br />
• Bike / locker storage<br />
• All unit entries and the amenity floor are accessed by Saf-Lok<br />
key system<br />
Blue Agave, an upscale Mexican restaurant currently located in<br />
the Gold Coast, will occupy a portion (46%) of the street-level<br />
retail space, and is scheduled to open in November 2011.
Efficient Floor Plans and Unit Sizes<br />
Alta offers residents with 34 different floor plans, each of which<br />
includes efficient layouts with expansive useable space for<br />
residents to enjoy. Studios range from 508 to 609 square feet,<br />
while one bedrooms range from 561 to 956 square feet, two<br />
bedrooms range from 1,104 to 1,172 square feet, and three<br />
bedroom penthouses range from 1,282 to 1,807 square feet.<br />
With an overall average unit size of 766 square feet, Alta’s per<br />
square foot rents are among the top in the market; however,<br />
smaller average unit sizes make Alta a more affordable option<br />
on a “chunk rent” basis when compared to several competitors,<br />
which average approximately 900 square feet or more. Interior<br />
finishes rival that of condominium buildings with full granite,<br />
hardwood cabinets, and stainless appliances.<br />
Property Performance<br />
Since opening the West Tower in March 2010 and the East Tower in<br />
June 2010, Alta has been extremely well received by the market,<br />
as evidenced by average absorption of approximately 60 units per<br />
month and as many as 96 units during peak leasing season (record<br />
breaking absorption for a downtown high rise). Alta is currently<br />
87% leased and 82% occupied. Since opening, concessions have<br />
burned off significantly and some unit plans are being leased<br />
at market rents. The last 40 leases were signed at an average<br />
effective rental rate of $2.73 PSF. Rent increases are expected<br />
to accelerate as the property stabilizes at 95% occupancy and<br />
demand outpaces supply over the next 18 months.<br />
Alta includes 13,410 square feet of commercial space, of which<br />
6,172 square feet (46%) is leased to Blue Agave, an upscale<br />
Mexican restaurant that is currently located in the Gold Coast<br />
neighborhood of Chicago. Blue Agave is scheduled to open in<br />
November 2011, further enhancing traffic and the allure of living<br />
at Alta at K Station. The remaining commercial space has also<br />
received significant interest from various restaurants, cafes and<br />
pet stores.<br />
Property Facts<br />
PROPERTY ADDRESS<br />
555 West Kinzie (East Tower)<br />
365 North Jefferson (West Tower)<br />
Chicago, IL<br />
TOTAL COMMERCIAL<br />
SQUARE FOOTAGE<br />
Blue Agave – 6,172 SF<br />
Spec – 7,238 SF<br />
Total – 13,410 SF<br />
# UNITS 848<br />
PARKING STALLS 695<br />
YEAR BUILT March / June 2010<br />
PARKING R<strong>AT</strong>IO 0.82x<br />
AVERAGE UNIT SIZE 766<br />
APT. LEASED % 87%<br />
NUMBER OF STORIES<br />
TOTAL RESIDENTIAL<br />
SQUARE FOOTAGE<br />
41 – East Tower<br />
37 – West Tower<br />
±649,283 SF<br />
APT. OCCUPIED % 82%<br />
Unit Mix<br />
# UNITS<br />
AVERAGE<br />
MARKET RENT<br />
PSF<br />
AVERAGE<br />
MARKET<br />
RENT AVG. SF TOTAL SF % UNITS<br />
Studio 232 $2.98 $1,725 578 134,160 27.4%<br />
One Bedroom 490 $2.79 $2,097 751 368,066 57.8%<br />
Two Bedroom 116 $2.67 $3,026 1,134 131,594 13.7%<br />
Three Bedroom 10 $3.04 $4,695 1,546 15,463 1.2%<br />
Total 848 $2.81 $2,154 766 ±649,283 100.0%
Magnificent Mile<br />
State Street Retail Corridor<br />
Financial District<br />
ine Station<br />
Iguana<br />
Cafe<br />
Orange<br />
Cafe<br />
Halsted<br />
DeCero<br />
Veerasway<br />
Red Light<br />
Vivo Izumi Sushi<br />
Bar &<br />
Restaurant<br />
Halsted<br />
Jewel/Osco<br />
Pinky<br />
JP<br />
Morgan<br />
Hall Chase<br />
Studio<br />
90<br />
94<br />
DesPlaines<br />
Milwaukee<br />
Coco<br />
Pazo<br />
Meiji<br />
Sushi<br />
Larrabee<br />
Jefferson<br />
Kingsbury<br />
<strong>KALTA</strong> <strong>AT</strong><br />
Blackbird<br />
Avec<br />
ST<strong>AT</strong>ION<br />
Jefferson Tap<br />
& Grille<br />
Trattoria<br />
Isabella<br />
Starbucks Jimmy<br />
John’s<br />
Sarpino’s<br />
Pink/Green Line Station<br />
Clinton<br />
Chicago<br />
Union<br />
Station<br />
Hudson<br />
New Line<br />
Tavern<br />
East<br />
Bank<br />
Club<br />
Canal<br />
Sedgwick<br />
350 West<br />
Mart Center<br />
N9NE<br />
Steakhouse<br />
Province and Ghostbar<br />
French<br />
Market<br />
Sepia Northwestern Boeing<br />
(Ogilvie)<br />
Carnivale<br />
Station<br />
Pepsi<br />
Orleans<br />
Wacker<br />
Ontario<br />
Ohio<br />
Sears<br />
Tower<br />
Franklin Franklin<br />
Chestnut<br />
Institute<br />
Wells<br />
Grand<br />
Lou<br />
Red Line Station<br />
Gene &<br />
Mainati’s Topolobampo<br />
Georgetti’s Sushi Pizzeria Fronterra Grill<br />
Sambo Lalo's Naha<br />
Illinois Rio<br />
Frankie Z's<br />
Ruth's Chris<br />
Steve’s Coco<br />
English Bar &<br />
Xoco<br />
Restaurant<br />
Steak House<br />
Deli Pazo<br />
Bank of<br />
Rockit<br />
Hubbard<br />
America<br />
Mambo Hub 51<br />
Rumba<br />
Kinzie Street<br />
Sullivan's Kevin<br />
Chop House<br />
Grill<br />
Steakhouse<br />
Keefer's<br />
Kinzie<br />
Harry<br />
Merchandise<br />
Westin<br />
Fulton's<br />
Caray's<br />
Mart<br />
River<br />
Hotel<br />
North<br />
Brown Line Station 300 N<br />
House Sax<br />
325 N<br />
Purple Line Station LaSalle<br />
LaSalle<br />
333 W<br />
Wacker<br />
UBS<br />
Tower<br />
Hyatt<br />
Center<br />
111 S<br />
Wacker<br />
The Loop<br />
Central<br />
Business<br />
District<br />
Brown Line Station<br />
Purple Line Station<br />
West<br />
Loop<br />
LaSalle<br />
Fogo de<br />
Chao<br />
River North<br />
Entertainment<br />
District<br />
Meli<br />
Cafe<br />
Wildfire<br />
Gaylord<br />
India<br />
Rest.<br />
Wacker<br />
Washington<br />
Madison<br />
Monroe<br />
Adams<br />
Clark<br />
Rock & Roll<br />
McDonald's<br />
Dearborn<br />
State<br />
Lake<br />
Thompson<br />
Center<br />
Theatre District<br />
Randolph<br />
Daley<br />
City<br />
Center<br />
Hall<br />
Central<br />
Loop<br />
Red Line Station<br />
Chicago<br />
Chop<br />
House<br />
Hard Rock<br />
Cafe<br />
321 N<br />
Clark<br />
Chase<br />
Bank<br />
Osteria<br />
Via Stato<br />
of Blues<br />
Smith &<br />
Wollensky<br />
Leo<br />
Burnett<br />
Bldg<br />
Wabash<br />
Shaw's<br />
Crab<br />
House<br />
Trump<br />
Tower<br />
Center<br />
Chestnut<br />
Water Tower<br />
Place Ritz<br />
Pearson Carlton<br />
Park<br />
Hyatt<br />
Chicago<br />
Neiman<br />
Peninsula Marcus<br />
Superior<br />
Saks Fifth Ave<br />
Hospital<br />
Chicago<br />
Place<br />
District<br />
Huron Northwestern<br />
Nike Memorial<br />
Town Hospital<br />
Erie<br />
Rush<br />
North<br />
Michigan<br />
Weber Grill<br />
Federal District<br />
Marriott<br />
Michigan<br />
Michigan<br />
Conrad Hotel<br />
Shops at<br />
Northbridge<br />
444 N<br />
Michigan<br />
Morton's<br />
Wrigley<br />
Building<br />
Hard<br />
Rock<br />
Hotel<br />
(Underground)<br />
Randolph<br />
Street<br />
Station<br />
Ontario<br />
Ohio<br />
Grand<br />
Intercontinental<br />
Hotel<br />
Tribune<br />
Tower<br />
401 N<br />
Michigan<br />
Chicago River<br />
East<br />
Loop<br />
Prudential<br />
Plaza<br />
Art<br />
Institute<br />
Hyatt<br />
Regency<br />
Fairmont<br />
Hotel<br />
Aon<br />
Center<br />
Millennium<br />
Park<br />
Fairbanks<br />
Grant Park<br />
Lake Shore Drive<br />
41<br />
Lake Shore Drive<br />
Lakeshore<br />
East Development<br />
Ogden Slip<br />
Nav<br />
290<br />
Van Buren<br />
Congress<br />
Financial<br />
Jackson<br />
Chicago<br />
Board of<br />
Trade<br />
LaSalle<br />
Van Buren<br />
Street<br />
Station<br />
(Underground)<br />
N<br />
Metra Rock<br />
Island Station<br />
Contact Information<br />
John Jaeger<br />
Multi-Housing Group<br />
Senior Vice President<br />
312.935.1037<br />
john.jaeger@cbre.com<br />
Dan Cohen<br />
Multi-Housing Group<br />
Senior Vice President<br />
312.935.1427<br />
dan.cohen@cbre.com<br />
Carrie Houck<br />
Multi-Housing Group<br />
Associate<br />
312.935.1407<br />
carrie.houck@cbre.com<br />
Pete Marino<br />
Debt & Equity Finance<br />
Senior Vice President<br />
847.518.2360<br />
pete.marino@cbre.com<br />
CB Richard Ellis<br />
311 South Wacker Drive<br />
Suite 400<br />
Chicago, IL 60606<br />
©2011 CB Richard Ellis, Inc. This information has been obtained from sources believed reliable. We have not verified it and<br />
make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for<br />
example only and do not represent the current or future performance of the property. You and your advisors should conduct<br />
a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your<br />
needs. PMC 0002454 - August 2011
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