Mount Prospect multifamily sale showcases suburban Chicago demand

A 42-unit multifamily building sold for $5.5 million in Mount Prospect, a sign that the suburban Chicago market gained strength from the pandemic.

29th Street Capital, a private real estate company that has acquired $3.1 billion of multifamily assets, sold Rand Parks apartments, a three-building rental property at 1050-1110 N. Wheeling Road, according to Interra Managing Partner. Interra represented both sides of the deal. The Manderly Group was the buyer. That equates to $131,000 a unit.

The property, located about 25 miles northwest of Chicago, has access to Interstate 90 and is less than a mile from the Randhurst Village Mall, home to Costco, Home Depot and TJ Maxx.

“Throughout Chicago’s suburbs, we’re seeing a strong appetite for well-located, value-add apartments,” said Craig Martin, Interra’s managing partner. IRR said 95 percent of the buildings were occupied at closing.

Owners of multifamily properties sought to capitalize on higher rents and increased occupancy in suburban Chicago after the pandemic. Connor Group sold a 321-unit Glenmuir apartment building in Naperville for $104 million in June, marking the priciest multifamily property sale in the suburbs since October 2018.

Other suburban apartments to hit the market include the 420-unit Fox Valley Villages and 416-unit Aspen Place, both in Aurora, and the 204-unit Lakeside Apartments in Wheaton.