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American Realty selling large suburban rental complex

American Realty chairman and CEO Stanley Iezman
American Realty chairman and CEO Stanley Iezman

American Realty Advisors is selling a 294-unit rental complex in Downers Grove, joining a growing list of suburban developments either on the block or trading hands.

Brokerage Moran & Co. is marketing the 16-acre Residences at the Grove complex at 2845 Easton Street for Los Angeles-based American Realty. Moran’s managing partner in Chicago, Pete Evans, declined comment on the listing, citing confidentiality agreements.

But Real Estate Alert reported the complex could attract bids of roughly $75 million, or $255,000 per unit.

The nine-year-old complex features three seven-story buildings with 270 apartments and five three-story buildings with 24 townhomes near the intersection of Interstate 355 and Butterfield Road. It is 94 percent rented, roughly in line with the overall suburban occupancy rate.

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In April, Marquette Companies teamed up with JPMorgan Investment Management to buy the 579-unit Willow Crossing development in Elk Grove Village for $80 million, or $138,000 per unit. Marquette secured a $56.5 million loan from Wells Fargo for the acquisition.

Dayrise, meanwhile, spent $104 million for a Hoffman Estates complex and Azure Partners picked up a Wheeling complex for $72 million.

And Invesco has hired HFF to sell the Wheaton 121 complex it bought in 2014 for $95.8 million.

Suburban rents grew 6.9 percent last year and were expected to rise significantly in 2018, according to a recent report from Marcus & Millichap.

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