In a tight market, California investor pays $90M for suburban rental complex

Passco bought the 260-unit property in Vernon Hills, which is fully leased up

Jan.January 07, 2020 12:00 PM
The Atworth at Mellody Farm and Passco CEO William O. Passo

The Atworth at Mellody Farm and Passco CEO William O. Passo

Less than two years after the Atworth apartment complex opened on a former dairy farm in Vernon Hills, its owners have cashed out.

California based Passco Companies paid $90 million for the 260-unit Atworth at Mellody Farm, Crain’s reported. The deal, at $346,000 a unit, illustrates the strength of the suburban Chicago apartment market, where low supply has driven demand to an all-time high.

The apartment complex is a part of the 270,000-square-foot Mellody Farm shopping center, which is anchored by a Whole Foods. The property was first listed in June last year, less than one year after the property opened. At the time of the listing, the property was 93 percent leased.

“The property leased up in 10 months,” Passco director of acquisitions Jake Niles, said to Crain’s. “That speaks volumes to the demand in this area and the lack of new supply.”

Units at the Atworth range from about $1,800 for a single-bedroom to around $3,000 for a three-bedroom, according to an online listing.

The property, located at 1111 N. Milwaukee was developed by Chicago-based Focus and Atlanta-based Atlantic Realty Partners. The duo cashed in on a similar deal in 2017 with the $81 million sale of a 239-unit apartment complex in Glenview. [Crain’s] — Jacqueline Flynn

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