16 September 2009 ? Northwestern Mutual Life Insurance Co. plans to sell Cityfront Place, a 39-story, 480 unit apartment building at 400 N. McClurg Court. The building was initially developed back in 1991 and is currently 97.5% occupied.

The downtown market has been mostly dormant for the past several years. The last time a big downtown apartment building changed hands was in August 2007, when the Streeter, a 481-unit tower at 345 E. Ohio St., sold for $210 million and One Superior Place, an 809-unit building at 1 Superior St., sold for $217.6 million. But with signs that the economy and financial markets are stabilizing, Northwestern Mutual is betting that investors will be willing to jump back in the market.

So how much will Cityfront Place sell for?? Hard to estimate in this market. It?s clear, however, that Cityfront will sell for less than it would have at the peak of the market in early 2007. Nationally, the average per-unit price for an apartment property has fallen 33% since then, according to Real Capital Analytics Inc. One investor estimated that Cityfront Place would fetch more than $70 million, or about $146,000 a unit.

The bad job market has hurt demand for apartments in general though the downtown market has held up relatively well, which could work in Northwestern Mutual?s favor. The sale of Cityfront Place will add 2,716 units to the downtown market between now and 2011. Some worry such an influx could drive occupancy and rent down.