A 192-unit apartment building in Chicago’s suburbs sold for $32.25 million, adding to investors’ expectations that the region’s multifamily housing market will continue to flourish during the pandemic.
Multifamily investment and operating company Orion Residential bought the complex at 951 Charlela Lane in Elk Grove, 23 miles northwest of Chicago, from Burton LLC, Cook County property records show. Orion is funding the purchase with a $22.8 million loan from Voya Investment Management.
The building’s website markets the apartments as “livable luxury.” One- and two-bedroom units ranging from 573 to 1,035 square feet start at $965 and go up to $1,400. Located on the west side of Elk Grove Village, the complex is 20 minutes from O’Hare International Airport and within two miles of major grocery stores including Aldi and Walgreens.
Owners of multifamily properties are seeking to capitalize on higher rents and increased occupancy in suburban Chicago after the pandemic. Occupancy rates for suburban apartments were at a five-year high of 97 percent in the second quarter of last year, a rise from 95 percent from the previous year, according to Integra Realty Resources.
The priciest multifamily property sale in the suburbs came in October. Albion Residential bought the 719-unit apartment complex in Palatine for $107.8 million last September. The highest price for a multifamily asset paid in 2021 was $175 million. FPA Multifamily paid that amount for its acquisition of McClurg Court at 333 Ontario Street in downtown Chicago.
Major multifamily suburban transactions in 2020 include a $104 million sale of a 321-unit Glenmuir apartment building in Naperville and $85.6 million deal of a 267-unit apartment complex in Des Plaines.
Orion Residential did not respond to requests for comment.
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