Cedar Street Acquires $34.6M Multifamily Real Estate Property in Chicago's Bucktown Neighborhood

Chicago-based Cedar Street has acquired a 132-unit multifamily property in the city's Bucktown neighborhood for $34.6 million, marking the firm's second major Chicago acquisition in recent months.

The firm announced Friday that it purchased the seven-story building at 1980 N. Milwaukee Ave., located along the high-traffic intersection of Milwaukee and Armitage avenues. Cedar Street is rebranding the property, previously known as AM 1980, as The Weyland.

The acquisition follows Cedar Street's July purchase of the Millie on Michigan, a 289-unit tower at 300 N. Michigan Ave. on the Magnificent Mile, for $122 million. That deal, completed with joint-venture partner Kayne Anderson, included 25,000 square feet of retail real estate and was later financed with a loan of just over $91 million from Invesco.

Chicago Multifamily Real Estate Market Drives Investment Strategy

Cedar Street CEO Will Murphy said the firm is capitalizing on favorable conditions in Chicago's multifamily real estate sector.

"We're bullish on Chicago," Murphy said. "For cash-flow multifamily, it's one of the highest-yielding markets in the country."

Murphy noted that uncertainty over property taxes has narrowed the pool of buyers, even as other market conditions improve. "The lack of liquidity is resulting in attractive buying opportunities that are some of the best in the country, and it's also resulting in a lack of supply that leaves Chicago second only to San Francisco in rent growth and occupancy," Murphy said.

Shift from Real Estate Development to Acquisitions

The Bucktown acquisition represents a strategic shift for Cedar Street, which has historically focused on ground-up real estate development. The firm has developed and bought more than 10,000 residential units throughout the country.

However, challenges including high borrowing costs and construction expenses have prompted some developers to pivot toward buying existing buildings, often for less than it would cost to build them.

The lure of growing rents has pushed Chicago-area sales volume to its highest level since 2022, according to CoStar data. In one large deal this month, AMLI Residential paid $134.5 million for the 275-unit Milieu tower in the West Loop.

Property Details

The seller of the Bucktown property was CRG, the development arm of construction firm Clayco, which built the project. CRG declined to comment.

Completed in 2018, The Weyland includes 6,245 square feet of retail space and amenities such as a fitness center, dog run and rooftop deck with skyline views. The property was 95% occupied at the time of sale.

Sources

CEDARst.com/news/following-mag-mile-deal-chicago-firm-adds-132-unit-purchase-on-north-side">CEDARst Companies