American Realty selling large suburban rental complex

Jul.July 05, 2018 01:30 PM

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.

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.

Related Articles

The Bolingbrook property along route 53 and Amazon CEO Jeff Bezos (Credit: Google Maps, Getty Images)

Amazon pays $51M for site of former Chicagoland amusement park

Jeff Bezos and the Old Wrigley gum factory at 3535 S. Ashland Avenue (Credit: Getty Images and Google Maps)

Chew on this: Former Wrigley gum factory pitched as potential Amazon warehouse

Landing CEO & founder Bill Smith and one of Landing's apartments at 30 E. Adams St.

Membership-based leasing platform Landing uses $20M Series A round to expand to Chicago

Peter E. Ricker, Chairman and CEO of MBRE, and 800-810 West Madison Street (Credit: MBRE and Google Maps)

MB Real Estate pays $19M for office building near Fulton Market

7250 S. Shore Drive and 6752 S. Michigan Avenue

Financially-distressed housing nonprofit selling 13 South Side properties

W. P. Carey Inc. CEO Jason E. Fox, Pritzker Realty Group founder and Chairman Penny Pritzker, 150 N. Clinton St. (Credit: Google Maps)

WP Carey and Pritzker Realty make big moves in West Loop

Rendering of 800 W. Fulton Market and Thor's Joe Sitt

Thor Equities lands anchor tenant for spec Fulton Market office tower

President of University of Chicago Robert Zimmer, DL3 Realty's Leon Walker and The Jewel-Osco in Woodlawn (Credit: Getty Images, Google Maps)

Near future Obama Center, U. of Chicago buys Jewel-Osco-leased building