Albion Residential has dropped a major change to nearly $ 140 million, the highest price for apartments in the suburbs of Chicago, to apartments in the northwestern suburbs of Palatine.
Bisnow / Brian Rogal
The apartment development company has acquired Bourbon Square, a community of 612 units on Lake Cook Road and Illinois Route 53, from Los Angeles-based Broadshore Capital Partners. Prices indicate that investment in apartments continues as interest rates rise.
The purchase of Albion Residential breaks the record held by Elink Rossing, a 1,155 real estate property in Glendale Heights. Sold for $ 137 million in February..
According to Albion President Jason Kane, the company paid Bourbon Square $ 139.3 million, or $ 228,000 per unit. Crain’s Chicago Business Reported.. Broadshore’s predecessor, Lowe Enterprises Investors, paid Bourbon Square $ 97 million in 2014 and was refinanced at $ 115.8 million in October 2019.
Albion owns 2,100 apartments in the Chicago area.
“All properties are in excellent shape,” Koehn told Crain’s Chicago Business.
The complex is being renovated, including a new kitchen, bathroom, flooring, washer and dryer. The amenities of the entire space are also fixed, and the building gets the job of painting the exterior.
Bourbon Square’s net operating margin increased 5.9% from 2020 to $ 5.71 million last year, according to Bloomberg data, and Bourbon Square’s occupancy at the end of 2021 was 96%, according to the Newmark pamphlet. ..
Albion raised funds for the acquisition with a senior loan from Wells Fargo and mezzanine financing from Chicago-based Walton Street Capital. Financing accounted for about 65% of acquisition and refurbishment costs.
The sale was mediated by Elizabeth Galliardi, Susan Lawson and Chuck Johanns, Senior Managing Directors of Newmark Chicago.
The The suburban apartment sector is on trackAttract and see the interest of tenants and investors Major rent increasesHowever, Albion also closed in April before the market plummeted and even the hot apartment segment began to look rosy in the headlines.
“We certainly chose to go into it,” Koehn told Crain’s.