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Key Points
Quarterra, Lennar's multifamily arm, is abandoning plans for a 25-story, 344-unit rental tower in Chicago's South Loop and is looking to sell the site at 410 South Wabash Avenue.
The decision to sell comes amidst a tightening downtown apartment pipeline in Chicago, with developers facing high borrowing costs, escalating construction expenses, and institutional investors pulling back from the city.
Despite the challenges, the scarcity of new supply and strong demand have led to a 6.4 percent year-over-year increase in Class A downtown rents in the second quarter, and the site's dense DX-16 zoning allows for up to 399 market-rate units without affordable housing requirements.