Albion Household dropped a significant chunk of improve — approximately $140M, reportedly the maximum selling price tag for a multifamily assets in suburban Chicago — on an condominium complex in northwest suburban Palatine.
The apartment progress business acquired Bourbon Square, a 612-device community at Lake Cook dinner Street and Illinois Route 53, from Los Angeles-based Broadshore Capital Associates. The price signifies ongoing multifamily investment decision strength amid increasing interest prices.
Albion Residential’s buy breaks the record held by Ellyn Crossing, a 1,155-device residence in Glendale Heights that marketed for $137M in February.
According to Albion President Jason Koehn, the agency paid out $139.3M, or $228K for every unit, for Bourbon Sq., Crain’s Chicago Organization described. Lowe Enterprises Buyers, Broadshore’s predecessor corporation, paid $97M for Bourbon Square in 2014, and an appraisal valued the property at $115.8M in Oct 2019 when it was refinanced.
Albion owns 2,100 flats in the Chicago region.
“All the attributes are doing spectacularly nicely,” Koehn told Crain’s Chicago Small business.
Renovations are in location for the advanced, including new kitchens, bathrooms, flooring, and washers and dryers. Amenities all through the room will also be preset, and the constructing will get an exterior paint task.
Bourbon Square’s web running cash flow rose to $5.71M final yr, up 5.9% from 2020, in accordance to Bloomberg knowledge, and a Newmark brochure noted Bourbon Square was at 96% occupancy at the stop of 2021.
Albion financed the acquisition with a senior loan from Wells Fargo and mezzanine financing from Chicago-based Walton Road Funds. The financing represented about 65% of the charge of the acquisition and renovation.
The sale was brokered by Newmark Chicago Senior Taking care of Directors Elizabeth Gagliardi, Susan Lawson and Chuck Johanns.
The suburban condominium sector is faring well, attracting tenants and trader fascination and looking at main lease hikes, but Albion also shut its offer in April just before markets plunged and headlines, even for the incredibly hot multifamily section, commenced to glance considerably less rosy.
“We unquestionably had our selections going into it,” Koehn instructed Crain’s.