Peak Capital enters Chicago market with suburban rental property buy

The Utah firm picked up a University Park apartment complex for $11.2M
By Joe Ward |
Research by Haru Coryne
May 07, 2019 03:00PM

Peak Capital founder Jeff Burningham and the Arbors at Hickory Creek (Credit: Wikipedia and Google Maps)

Peak Capital founder Jeff Burningham and the Arbors at Hickory Creek (Credit: Wikipedia and Google Maps)

Peak Capital Partners bought a south suburban multifamily complex, its first acquisition in the Chicago market.

The Utah-based firm paid $11.2 million for the Arbors at Hickory Creek, a rental complex at 4791 Hickory Creek Drive in University Park, Cook County property records show. CBRE Multifamily Capital provided a $9.2 million acquisition loan for the deal.

The Arbors at Hickory Creek is a 176-unit complex with a number of units designated for housing voucher recipients, according to Affordable Housing Online. It is down the street from Governors State University.

Peak Capital is an investment firm specializing in affordable and student housing, and it controls thousands of units across the United States. The University Park deal appears to be Peak’s first in Illinois, according to its portfolio listed in the firm’s website. A spokesperson for the firm did not immediately return a request for comment.

Selling the rental complex was the Michaels Organization, a New Jersey-based affordable home developer. The Michaels Organization hasn’t left Chicago entirely, as it is working to build a 164-unit residential complex in Bronzeville.

Peak Capital is not the only firm acquiring affordable housing developments in the Chicago area. California-based Avanath Capital Management has been on a local affordable housing shopping spree, including paying $15.5 million for an Old Town complex that has a contract with the Chicago Housing Authority.