415-howard-150420

The 17-story apartment building at 415 Howard St. in Evanston has been sold for just over $40.2 million.

The transaction, included in this month’s real estate transfer tax report from the city, closed on March 30, and dramatically boosted transfer tax revenue for March, yielding $202,000 in tax — more than half the total for the month.

The new owner is listed as KRE CC 415 Premier Owner LLC, which based on its mailing address, appears to be affiliated with the private equity firm Kohlberg Kravis Roberts & Co.

The Howard Street property has had a troubled financial history. Completed in 2008 as Howard Station and then renamed Skyline at Evanston, it fell into foreclosure after the death of developer Bill Walsh, president of Bristol Chicago Development.

It was purchased in 2010 by Crossbeam Capital LLC and Concierge Asset Management and they managed to increase occupancy at the building to 94 percent from 64 percent.

Topping the 90-percent occupancy level let the developers start receiving a property tax rebate under an agreement with the city.

The new sale prices the 221-unit building at less than half the per-unit price achieved by the 175-unit 1717 Ridge building, which sold less than two years ago, shortly after construction was completed, for $70 million — described at the time as the highest price per unit ever for a suburban apartment development.

Excluding the 415 Howard sale, sales subject to the transfer tax last month would still have been above the March average for the past few years.

Other sales that topped the million dollar mark in March included:

  • A lakefront home at 2835 Sheridan Place sold for $2.1 million.
  • A brick mansion at 1046 Sheridan Road sold for $1.845 million.
  • An apartment building at 240-244 Callan Ave and 628-630 Mulford St. sold for $1.515 million.
  • A commercial greenhouse property at 316 Florence Ave. sold for $1.3 million.
  • A Victorian home at 1242 Hinman Ave. sold for $1.15 million.
  • A Colonial revival home at 2939 Lincoln St. sold for $1.025 million.

Bill Smith is the editor and publisher of Evanston Now.

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3 Comments

  1. Filling Budget Gap?

    The transfer stamp for this sale should go a long way toward filling the potential budget gap that is looming from Rauner's threatened cuts.  This sales is excellent news!  Does anyone know if this is still a TIF district or will those revenues actually flow to city hall for use outside of a TIF?

    1. Still a TIF

      The Howard-Ridge TIF district was created in 2004, so its 23 year life won't be over until 2027.

      However, the real estate transfer tax revenue from the sale isn't captured by the TIF district — only property taxes are.

      As for property tax on the building, the city is still rebating all of that to the building owner for another couple of years, after which that assistance will be gradually phased out over the following seven years.

      — Bill

      1. Not much of a way to run a Budget
        Giving the ‘Property Tax’ back to the owner ! And now for several more years [2027?] ?
        Not much of a way to run city—give a builder freedom from taxes and tax the residents.
        Where did the Council learn about economics or finance ?
        If this was April 1, I assume it was an April Fools joke.
        Enough with these TIFS. They are nothing but trouble.

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