Home News DRA Advisors buys ReNew on York apartments from FPA Multifamily

DRA Advisors buys ReNew on York apartments from FPA Multifamily

by admin
0 comment

That’s a promising price for suburban Chicago apartment owners, especially amid rising inflation and interest rates. Combined with other recent suburban sales, the deal suggests the multifamily investment market is doing well so far.

FPA also added value to the complex with a multimillion-dollar renovation, repairing apartments and common areas and addressing some deferred maintenance, said Alex, FPA’s vice president of disposals. Louden said.

“It was a fairly simple value-add deal for us along the fairways,” he said.

DRA officials did not respond to requests for comment.

The suburban apartment market has been gaining momentum since the start of the COVID-19 pandemic and has been doing well for several years. A strong job market is boosting demand for apartments, and more young workers are finding themselves financially secure as they move out of their parents’ homes. If the job market is strong, renters who share apartments are also more likely to split, meaning more apartments will be rented.

Median Net Apartment Rent in Chicago Suburbs Record price increase of $1.87 per square foot Consulting and appraisal firm Integra Realty Resources said the first quarter was up 17% from the same period last year. Suburban occupancy he rose to 98.1%, at least his highest since 2003.

Rising rents and occupancy rates boosted real estate income. Net operating income for his ReNew in New York rose to $4.3 million last year, up 28% from 2019, according to Bloomberg lending data.

Investors have been raising prices, betting that property income will continue to rise.For example, in July, Oak Brook-based Albion Residential opened $139.3 million For Bourbon Square, a Palatine property that sold for $97 million in 2014. This is a national trend.

Since purchasing ReNew in York, DRA has renamed the property Bennington. Built in 1974, the complex at 100 George Street has four six-story buildings. Monthly rents range from $706 for a studio apartment to $1,556 for a two-bedroom unit, according to real estate dating provider CoStar Group.

Rather than seeking new financing to finance the acquisition, DRA underwrote a $60.9 million mortgage on the property. Louden said this was a plus given the recent rise in mortgage rates. The current mortgage interest rate is 3.58% for him. Interest rates on new mortgages will be higher, limiting how much a buyer can pay for a property.

“It certainly attracted more investors,” says Louden.

FPA still has many properties in the Chicago area, including Rex in the South Loop, McCragh Court in Streeterville and Wheaton Center Apartments in Wheaton.the company recently paid $97 million For Tapestry Glenview, a 290-unit property in Northbrook.

You may also like