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A $67 million apartment building is a sign of creeping confidence
Construction has started on a nine-story apartment building on the northwest corner of Madison Street and Racine Avenue. The 216-unit project is a venture of Ascend Real Estate Group, Team4 Development, both in Chicago, and Boston-based Intercontinental Real Estate.
As a sign of the developers’ confidence, work on the $67 million project is proceeding without a construction loan, although they insist they will have one shortly. They label the project as a luxury development in a neighborhood setting.
Peter Palandjian, chairman of Intercontinental, said apartments are providing a secure risk-adjusted return for investors and a reliable income stream for pension funds. He said existing apartments have gotten too expensive for investors, so “building new apartments provides the opportunity to manufacture higher returns relative to buying existing.”
The design of Madison at Racine is by FitzGerald Associates Architects. Occupancies are expected starting in fall 2014.