Connect Chicago

Essex Lists Sonder-Leased Hospitality Property

June 21, 2021

Essex Realty Group principals Jim Darrow and Jordan Gottlieb have listed The Plymouth, 417 S. Dearborn St., a turn-of-the-century property in the Loop, for $17.5 million. Featuring 30 apartments, the entire building is master leased by Sonder, an international hospitality company that provides short-term, fully furnished rentals.

“We are seeing more and more multifamily properties occupied by hospitality companies as developers execute master or bulk leases with hotel operators such as Sonder,” said Gottlieb. “This property underwent an incredible transformation and was originally intended for a 130-bed student housing property. However, Sonder’s master lease offer provided the owner with a very attractive tenant and a stable income stream.”

He added that if the property’s new ownership wanted to convert it back to apartments or student housing, very limited capital expenditures would be required to make that switch. Valued at more than $2 billion, Sonder began operating in Chicago in 2015.

30-Unit Sonder-Leased Hospitality Property

Multifamily Investment Opportunity in Chicago

Since 1990, Essex Realty Group, Inc. has served Chicago’s investment real estate market as a top multifamily brokerage firm. Contact us today to learn more about our recent multifamily and mixed-use property sales, or click HERE.

Read Full Article at Connect Chicago
Tagged in this post: Jim Darrow , Jordan Gottlieb