New Upscale Apartments Proliferate

Downtown dwellers opt to lease at the Aqua, EnV, and other luxury buildings

Monthly Rent Ranges

Five major downtown rental towers, all completed in the past few years, and their entry prices as of July 13:

ALTA AT K STATION (555 W. Kinzie St.)
one bedroom: from $1,633
two bedroom: from $2,728

[1] AQUA (225 N. Columbus Dr.)
one bedroom: from $2,254
two bedroom: none available

[2] EnV
(161 W. Kinzie St.)
one bedroom: from $2,142
two bedroom: from $3,320

FLAIR TOWER (222 W. Erie St.)
one bedroom: from $2,125
two bedroom: from $3,096

 PLACE (355 E. Ohio St.)
one bedroom: from $2,050
two bedroom: from $3,217

In Texas, where the Lynd company has been developing and managing rental apartments since 1980, one-upmanship comes with the territory: “If you don’t build the gilt-edged project,” says A. David Lynd, president of the company, which was founded by his father, “then someone outdoes you [and] converts all your renters to theirs.”

Lynd brought that mindset to Chicago when he built his company’s first project outside Texas, a 29-story luxury apartment tower named EnV. The building, at 161 West Kinzie Street, opened in late summer 2010 with the vibe of a boutique hotel: eye-catching architecture, high-end kitchens, personal wine storage bins on the club floor. But all that comes at a price. Lynd acknowledges that he wanted to “set a new bar for rents in downtown Chicago”—and the rents at EnV are about 5 to 10 percent higher than the rates Lynd found at existing buildings in River North.

That increase isn’t confined to EnV. As new apartment towers opened over the past two years in the Loop, River North, and Streeterville, they boosted the cost of downtown renting. After a few years of slow or no change, downtown rents jumped by about 15 percent from summer 2010 to summer 2011, says Aaron Galvin, the owner and managing broker at Luxury Living Chicago, an apartment marketing service. One-bedroom units can be found at just over $1,500 but more commonly start at $2,200. “Out of ten callers, seven are shocked at the prices I give them,” Galvin says.

One reason for the spike, according to Galvin, is a temporary shortage of inventory. Though the luxury apartment buildings that opened between 2009 and early 2011 added about 5,000 apartments to the downtown supply, no new buildings will show up until late 2012 at the earliest, Galvin says. (About 15 new apartment towers have been proposed or are under way in downtown neighborhoods.) This comes at a time “when there’s increased demand for apartments from the people who a few years ago would have bought condos,” he adds. “[They] can afford to buy but choose not to. They aren’t comfortable with where [home prices] are going, so they rent.”

These renters—mostly young professionals and empty nesters—have high expectations, says Michael Newman, whose Golub & Company built The Streeter and Streeter Place apartment towers in River North (the company sold The Streeter a few years ago). “They’ve seen the nice condos with the granite and the stainless steel,” he says. “They want those things, but they want to rent. So you have to have that level of quality they expect if you want to attract them.”


Photography: (1) Courtesy of Studio Gang Architects; (2) Courtesy of Lynd; (3) Todd Urban



3 years ago
Posted by Moosecook

My girlfriend and I had one bedroom w/parking in 1000 West Adams for about 1300/month from 2006 to 2008. We are living out in the west suburbs currently, and with those prices will be stuck out here for a while. I enjoy Chicago, but don't mind driving into the city for entertainment.


3 years ago
Posted by Gina_R

I lived in The Streeter for two years and didn't think it was worth the rent. There are plenty of nice places to live in the city for half the cost. Not to mention, when I did live in The Streeter, my neighbors were mostly college students who brought their parties into the hallway nearly every night. Management did nothing about it. These buildings are home to many privileged students who don't always respect their surroundings. They take over the gym and common areas. I'd do A LOT of research if you're planning to rent at one of these high-priced buildings!

3 years ago
Posted by Cvitucci

Tenants in The Loop do appear to be responding favorably to availabilities in spite of the high rents. According to Reis, Inc., The Loop’s July average asking rent was up 3.4% from last year at this time, resulting in a rate of $1,755 per unit, making The Loop the second most expensive rental market in the metro (the average asking rent in the Gold Coast took the top spot, at $1,764 per unit). Meanwhile, The Loop’s average vacancy rate of 7.6% as of July was down 320 basis points from the same time last year—this despite the addition of 980 units in three new rental developments in 2010 (including the EnV apartment complex), and the first quarter 2011 delivery of 329 units at 200 West Lake. With the demand for rental units expected to continue to be strong, expect even higher rents here for the foreseeable future.

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Connie Vitucci

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