Big news over at the West Side behemoth Mercedes House: a Texas-based investment firm dropped $170 million to buy the top 10 stories from Two Trees Management. Two Trees had originally set aside those floors for 162 condos, but Crain's reports that the new owner, Invesco, will be marketing them as rentals. Construction on the upper floors of the 32-story building is not yet finished, but the units were outfitted with higher-end appliances and finishes than the 692 rentals on the lower floors. A rep from Two Trees explained the bulk sale as "an expedited route to achieve our exit plan with mitigated risk," which Crain's translated to mean "a sign of the ongoing weakness in the city's market for condos." Or maybe Two Trees just needed some more cash for Domino?
Units at the Mercedes House rent for as much as $8,000 for a two-bedroom with a terrace, but the development has yet to deliver the promised amenities, like the pool. Construction noise and dirt have been a constant presence for people living in the building, and we can't imagine that new ownership for part of the building will make current residents' lives any easier. This guy, in particular, might lose his mind.
· Top 10 stories of Mercedes House sell for $170M [Crain's]
· Mercedes House coverage [Curbed]