FPA sells Bensenville apartment complex for $106M

A San Francisco investor sold an apartment complex near O’Hare International Airport for $106 million, or $186,000 per unit, reflecting strong demand in the suburban multifamily market.

FPA Multifamily sold the 571-unit Renew on York in Bensenville to DRA Advisors for $106 million, Crain’s reported. FPA paid $75.3 million for it in 2019 and completed a multimillion dollar renovation that addressed maintenance issues.

100 George Street in Bensenville (Google Maps)

Suburban Chicago median apartment rents rose 17 percent in the first quarter from a year earlier to a record $1.87 per square foot. Occupancy rates surged to 98 percent, the highest since 2003.

The increases are helping propel profits. Renew on York’s net operating income rose 28 percent last year to $4.3 million.

DRA changed the name of the Bensenville apartment complex to The Bennington. The four-building complex at 100 George Street was built in 1974 and has rents that range from $706 for a studio to $1,556 for a two-bedroom unit.

Instead of getting a new loan to finance the purchase, DRA assumed the property’s $60.9 million mortgage. That will probably save the company money, because the mortgage has a rate of 3.58 percent, lower than it would cost to borrow now.

While FPA sold its Bensenville property, it still owns the Lex in the South Loop, McClurg Court in Streeterville and the Wheaton Center apartments in Wheaton.

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— Victoria Pruitt