A South Florida investor that recently paid $44 million for two apartment complexes in Chicago’s western suburbs just spent almost $84 million on another one.
Miami-based Pensam Capital bought the 336-unit Butterfield Oaks apartment complex in Aurora from a venture led by developers Tony Rossi and Tom Moran, Crain’s Chicago Business reported.
The firm also recently acquired the 416-unit Aspen Place Apartments in Aurora for $30.7 million and the 204-unit Lakeside Apartments in Wheaton for $13 million. With the latest purchase, Pensam now owns more than 3,400 apartments in the Chicago area — mainly in the western suburbs of Naperville, Woodridge and Downers Grove.
“We intend to be very active in 2022,” Pensam Founding Partner Michael Stein told Crain’s. “We really like the stability of the Midwest markets, particularly of the western suburbs.”
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Butterfield Oaks, a 23-acre property located at Butterfield Road and DuPage Parkway, was developed by Rossi and Moran more than two decades ago. According to Rossi, president of M&R Development, the pair decided to sell the complex because their Japanese investment partner wanted to cash out.
The Pensam venture paid $83.8 million — or about $249,000 per unit — for Butterfield Oaks.
Suburban apartment rents are on the rise in the region. The median net apartment rent in the Naperville/Aurora market rose 15.5 percent over the past year to $1.74 per square foot.
Pensam plans to renovate the complex with new flooring, stainless-steel appliances and new roofs, which will allow it to raise rents on the property. Pensam plans to invest “several million dollars” into the property, which will cost less than it would to build a new complex in the area.
[Crain’s] — Victoria Pruitt