December 13, 2007

Columbia College dorm up for sale

Category: Luxury Condos. Posted by Mike at 7:12 pm.

Negotiations for a 27-story tower at 59 East Van Buren Street are underway.  The Buckingham is home to a 456-bed dormitory for Columbia College.

The buyers are Blue Vista Capital Partners, a Chicago-based investment firm which has been actively picking up properties around the city.  The firm recently purchased a 10-story office building in the West Loop, and plans to convert the building into another dormitory for college students.

As demand for condo drops and prices around the Chicago region slide, many investment firms are looking for a new way to invest in real estate.  Increased demand for student housing around downtown Chicago led the group to form a student housing fund with Place Properties L.P., an Atlanta-based investment group.

The current owners of the Buckingham are Chicago-based companies Brownstone Realty & Development Co. and L & H Real Estate Group.  Industry experts expect the building to sell for over $50 million.  The companies purchased the property just a few years ago, and just recently renovated the building and opened the dorms to students last fall.  Columbia College has signed a five-year lease for the property.

Student dorms are a bright spot on the market, which has been hit by a downturn in sales of Chicago Condos as a result of problems in the mortgage market.

Technorati Tags: , , ,