On the heels of buying a large Romeoville apartment complex, an Oak Brook-based multifamily developer has bought another similar property in another nearby suburb.
JVM Realty bought the 149-unit Courthouse Square apartment complex at 250 South Naperville Road in Wheaton for an undisclosed amount, Crain’s reported. CBRE Investment Management sold the property with JLL representing the seller in the deal.
The investment arm of CBRE bought Courthouse Square in 2018 for $46.9 million, or about $314,000 per unit.
The recent purchase is in line with JVM’s recent trend of buying Midwest apartment properties, including the 240-unit Seasons at Romeoville, which it paid $72 million to acquire in December.
“The acquisition of Courthouse Square fits our long-term strategy of pursuing investments where we can leverage our local experience and extensive operating platform to enhance performance,” Jay Madary, president and CEO of JVM, said in a statement about the deal.
The property is 99.3 percent occupied with rents ranging from $1,474 per month for a studio, to $3,628 per month for the most expensive three-bedroom unit.
Suburban apartment properties have been popular with investors, even with rising interest rates. Appraisal and consulting firm Integra Realty Resources said the median net suburban apartment rent is on track to rise by 3 or 4 percent this year, on top of the 7.3 percent increase in 2022.
With high occupancy rates and rents on the rise, suburban apartment landlords have been able to sell their properties for large increases in value over their acquisition costs. Other large recent deals in the western suburbs include Blackstone Real Estate Income Trust’s sale of the 440-unit Green Trails Apartments in Lisle for $100.4 million, and the 319-unit Grand Reserve in Naperville for $93.5 million. DRA Advisors bought the Lisle property and Friedkin Property Group bought the Naperville complex.
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— Victoria Pruitt