Chicago developer Focus sells Lake Forest complex at record per-unit price
Strong tenant fundamentals at 111-unit Kelmscott Park Apartments will insulate new buyer Intercontinental Real Estate from risk
A Boston-based investment firm just paid $54 million for a multifamily development in Lake Forest, which makes it among the biggest investment-sale deals since the pandemic struck in March.
Intercontinental Real Estate acquired the 111-unit Kelmscott Park Apartments in Lake Forest from Chicago-based developer Focus, Crain’s reported. That pencils out to about $484,000 an apartment, a record price for the Chicago suburbs, according to Real Capital Analytics.
Focus, led by CEO Tim Anderson, developed the complex in 2018 and targeted well-off tenants. According to JLL data cited by Crain’s, Kelmscott Park’s new owners are in a strong position to weather the economic crises due to that tenant mix — the average tenant has an annual household income of about $320,000, and is over 50 years old.
Intercontinental signed a contract to buy the property in March, before a statewide stay-at-home order went into effect, according to Crain’s. The investment firm owns an office building in the Fulton Market District and apartment buildings in Chicago.
The market-rate apartments at Kelmscott Park range from $2,251 per month for a one-bedroom unit to over $4,700 for a three-bedroom, Crain’s reported. Despite the uncertainty of a pandemic, Focus continues to develop in the greater Chicago area. It has projects ongoing in Lake and DuPage counties as well as an office building with Shapack Partners in Fulton Market. [Crain’s] — James Kleimann