Essex Lists Sonder-Leased Hospitality Property
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.
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