Suburban Hoffman Estates 550-unit multifamily property hits the market

Chicago investors are seeking to sell a multifamily property suburban Hoffman Estates, which hasn’t had a new rental building since 2013.

Tricap Residential Group and Wolcott Group listed the 550-unit Haven Hoffman Estates at 725 W Bode Circle, according to CBRE. The listing didn’t have a price. Tricap and Wolcott paid $60 million for the rental complex in 2019.

The two firms renovated the 1973 building with granite countertops and vinyl plank flooring in kitchens and wood-paneled doors. Rents for studios, one- and two-bedroom units range from $1,218 to $1,722.

Hoffman Estates is known to have high entry barriers for developers. Only two rental complexes were built in neighboring Schaumburg in the past nine years, according to CBRE.

Chicago’s suburban multifamily properties have been a popular investment choice amid high occupancy rates and rising rents. Rates hit 97 percent in the second quarter, the highest in four years, according to Integra Realty Resources.

A seven-story, 403-unit apartment building in Lombards traded hands for $104 million, marking the largest multifamily deal in DuPage County this year. Other deals include a 192-unit rental complex that sold for $32.25 million at 951 Charlela Lane in Elk Grove and a 43-unit apartment building at 229 Park Avenue, which local real estate developer HP Ventures Group paid $19.4 million for the fully occupied property.

Of the 19 multifamily properties Tricap owns across seven states including Michigan, Wisconsin and Iowa, five are in Illinois.