Suburban 403-unit apartment building sold for $104M, largest deal in DuPage county

Suburban Chicago’s multifamily housing market shows no sign of cooling.

New York investment management service firm Torchlight Investors bought City View at the Highlands, a seven-story, 403-unit apartment building in Lombards for $104 million from a joint venture including local development firm Marquette Companies, marking the largest multifamily deal in DuPage County this year.

Torchlight took out a $73.5 million loan on the property from Freddie Mac Multifamily, according to JLL, which represented the borrower. The Hayman Company will provide leasing and property management services.

The property, on five acres of land, comprises one-, two- and three-bedroom apartments averaging 902 square feet. Recently renovated common-area amenities include two outdoor lounge spaces with fire pits, a fitness center and a conference room.

Located at 2720 South Highland Avenue in DuPage County, the building is adjacent to two major expressways, I-88 and I-355, both leading to Chicago’s international airports and downtown Chicago.

The deal follows a busy year for large multifamily housing sales in the suburbs, a popular investment choice amid high occupancy rates and rising rents. The occupancy rate for suburban Chicago multifamily apartments was 97% in the second quarter last year, the highest in four years, according to Integra Realty Resources.

Dwell at Naperville, a 400-unit property, sold for $122.5 million, was the largest multifamily deal in the suburbs last year.

Other large sales included Park Ridge Commons, a 752-unit property in Des Plaines, which traded for $117 million and Birchwood on Sterling in Palatine that changed hands in a $107.8 million deal.