Redwood Capital picks up suburban apartment complex for $70M

Redwood Capital Group bought a 231-unit apartment building in southwest suburban Orland Park, becoming the latest large suburban rental complex to change hands in recent months. The purchase price was $70.4 million.

Sellers Reva Development Partners and Wanxiang America Real Estate Group finished the Residences of Orland Park Crossing at 143rd Street and LaGrange Road in November 2016, according to Crain’s.

It is the third apartment complex Riva has sold since late last year: The firm unloaded a 336-unit development in Vernon Hills at the end of 2017 for $94 million and sold a 300-unit project in Wheeling for $72 million in April.

Chicago-based Redwood Capital bought the Orland Park complex, which is 94 percent occupied, for about $305,000 per unit. Rents in the development average $2,142 per month, according to Crain’s.

Sales of suburban multifamily properties have been active. In the last year, Monument Capital Management bought a total of 731 units in two developments in Mount Prospect for $92 million.

JPMorgan, meanwhile, spent $80 million on an Elk Grove Village complex, while Dayrise bought a Hoffman Estates complex for $104 million.

Not far from Orland Park, A&R Katz Management is asking more $31 million for a 309-unit complex in Tinley Park.

Suburban rents grew 6.9 percent last year and were expected to rise again “significantly” this year, according to a recent Marcus & Millichap report.[Crain’s] — John O’Brien