CHICAGO—Ontario-based Morguard Corp. has agreed to buy the Alta at K Station apartment complex here for $300 million from a partnership of local developer Fifield Cos. and Newport Beach, Calif.-based Pacific Life Insurance Co.
Stevin Fifield put the two-tower complex on the market twice, most recently this past summer. The 848-unit complex at 555 W. Kinzie St. had been offered for about $450 million along with the Echelon at K Station apartment tower in summer 2011, but Fifield was only able to sell the Echelon for $104.5 million to Miami-based Crescent Heights this past February. Fifield is also building the 496-unit K2 Tower at 365 N. Halsted, which should open by in 2013.
Morguard said in a statement that it expects to finance the purchase price with a mortgage in the principal amount of $200 million for a term of 10 years, bearing interest at 3.29% per year, and other available sources of funds. The company will assume management of the complex on March 1.
The 37 story and 41 story Alta towers were completed in 2010 and currently have an occupancy rate of about 94%. The complex includes more than 12,000 sq. ft. of retail, an eight-level parking garage, and amenities such as a one-acre park, a 48,000-sq.-ft. amenity deck with a sports court, resident lounge, party suite and private balcony, a business center, theater, a fitness center and locker rooms, an outdoor sun terrace with a pool, spa and private cabanas and a gourmet grill kitchen.
"This opportunity allows Morguard Corp. to expand its footprint in the United States and execute on our U.S. growth strategy to acquire high-quality core assets," said Rai Sahi, CEO, in the statement.