New Development Follows Success of 809-unit One Superior Place
ARLINGTON, Va., April 19 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the nation's leading urban multifamily REIT,
announced today the start of a new 480-unit high-rise apartment building and
the acquisition of a 185-unit high-rise -- both in downtown Chicago. Smith
Residential is the largest multifamily REIT owner in downtown Chicago, with
2,800 units including these two properties. The Company's overall Chicago area
portfolio now exceeds 5,200 units.
"The demand for urban living continues to be very strong in Chicago," said
Ernest A. Gerardi, Jr., President and CEO of Smith Residential Realty, "as
shown by the rapid lease-up of our 809-unit One Superior Place, which is 96%
leased less than nine months after opening. Overall rental occupancy in
downtown Chicago is now over 97%. In less than three years, we've established
a leadership position in the market through a combination of acquisition and
development. With little competitive supply underway, and a continuing
expansion of retail, dining, entertainment, and cultural amenities in the
downtown area, we expect this market to maintain its excellent growth."
New Project To Add 480 Units in Central Business District
Construction is expected to commence within 60 days on a new 52-story
high-rise located on North Columbus Drive next to the Fairmont Hotel and the
Illinois Center Athletic Club. The 480-unit building will be one block north
of Millennium Park.
Residents will be within walking distance of the Park's venues, including
a 1,500-seat indoor auditorium for music and dance, an outdoor pavilion,
gardens, ice skating, fairs, and festivals, all in a scenic lakefront setting.
Millennium Park is designed to be the focal point of the city's new performing
arts district and is scheduled to open in 2001 with year-round attractions.
The new building, scheduled to deliver its first units in 2001, will be
developed in affiliation with Chicago-based Near North Properties, Inc.,
Magellan Development Group, Ltd., and Kenny Construction Company. Estimated
cost of the project is approximately $103 million, which will be funded
through internal sources.
Jim Loewenberg, President of Near North Properties, Inc., said "This
significant new building will be a much-needed addition to the supply of
rental apartments in downtown Chicago. Interest in urban living in Chicago is
soaring, and we're delighted to partner once again with Smith Residential
Realty to bring a quality residential living experience to the downtown
market."
The building will offer views of Lake Michigan, Grant and Millennium
Parks, the Chicago River and the Chicago skyline from studio, one, two and
three-bedroom apartments, with an average unit size of 907 square feet.
Spacious three-bedroom apartments, averaging 1,770 square feet, are provided
on the top six floors of the building to address the shortage of larger rental
units downtown. Residents will find convenience services and retail space on
the entry level. The building's Club Floor will feature an indoor swimming
pool and an outdoor sundeck, a fitness facility, and a 24-hour business
center. Apartment designs feature private balconies, gourmet kitchens, and
ceramic floors in both kitchen and bath. Each unit will have a washer and
dryer, as well as allowing residents to select and control heating or cooling
at any time, both unique aspects in Chicago's high-rise multifamily rental
market. The building will also be linked to Chicago's extensive underground
"Pedway," connecting it to retail and offices within the CBD.
Acquisition of Dearborn Place
In early April, Smith Residential Realty acquired the 185-unit, 27-story
Dearborn Place, built in 1987 and located at 875 North Dearborn Street, just
one block from the Company's 306-unit One East Delaware property and three
blocks from One Superior Place. The $25 million transaction was funded through
a combination of approximately 36,000 Operating Partnership units, and $24
million in cash and debt assumption.
From Dearborn Place, it is an easy walk to restaurants, theaters,
nightlife and Michigan Avenue shopping. Amenities within Dearborn Place
include a sun deck and a 24-hour fitness center. Apartments feature balconies
and contemporary Euro-style kitchens.
Market Overview
Chicago is the third largest metropolitan area in the U.S., with an
estimated population of 7.8 million and a broadly diversified economy. In
1999, the city added approximately 54,000 jobs with a significant portion of
these jobs in the downtown area. Substantial new development of retail and
entertainment uses in the city has increased the appeal of urban living for
the many people who work in or near the downtown area.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange under the symbol "SRW."
The Company and its subsidiaries and affiliates own, acquire, develop, and
manage multifamily residential units in Washington, D.C., Northern Va.,
Chicago, Boston, and Southeast Fla. The Company owns or has an interest in
approximately 26,000 units and has approximately 3,500 units under
construction and pre-purchase agreements. The total market capitalization of
the Company -- Charles E. Smith Residential Realty, Inc., including its
Operating Partnership -- exceeds $2.6 billion.
Investor information, including press releases about Charles E. Smith
Residential Realty, is available on the Company's web site at
http://www.charlesesmith.com and also through PR Newswire's News on Call by fax
800-758-5804, ext. 101271, or at http://www.prnewswire.com.
This news release contains forward-looking statements regarding the
Company's outlook, including statements of goals, intentions, and expectations
based on assumptions about general economic and market conditions, competitive
dynamics and other factors that, by their nature, are subject to significant
uncertainties, some of which are discussed in the Company's filings with the
Securities and Exchange Commission. Because of these uncertainties, and the
assumptions on which statements in this release are based, actual future
results may differ materially.
SOURCE Charles E. Smith Residential Realty, Inc.
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Related links:
http://www.charlesesmith.com
CONTACT:
Investors: Chandler Spears, 703-769-1044; or
Media: Susan Goyette, 703-769-6746, both of Charles E. Smith
Residential Realty, Inc.
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