After wrangling a Glenview apartment complex from its previous owner, Fortress Investment Group sold the property for less than its last trade in a rare loss in value for a suburban multifamily asset.
BJB Properties bought the 425-unit GlenLake Village apartment complex for $67.2 million from Fortress, Crain’s reported. Fortress seized the property from its owner, Atlas Residential, in 2020.
Atlas bought the property, at 4300 West Lake Avenue, in 2017 for $73.5 million. Atlas paid for the property with the help of a $64.9 million mortgage from TPG Real Estate Finance Trust.
Fortress bought the property’s loan in 2019 and, less than a year later, moved to seize the property by snagging control of the corporate entity that owned it. Atlas sued Fortress in an attempt to stop the move in August 2020.
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Atlas said the GlenLake complex was in fine financial condition and the company hadn’t missed any interest payments, only had some “technical” violations of the loan agreement. Atlas also said the property was worth $99 million, which was much more than what the company owed Fortress.
Once the property’s occupancy dropped to 62.9 percent by early 2021 and Atlas failed to pay back the matured mortgage, though, Fortress came out on top and gained control of the property.
While Atlas took a clear loss on the property throughout the process, it’s not known how much Fortress made or lost on the sale because the amount it paid for the $64.9 million loan isn’t public information.
— Victoria Pruitt