Standard, Vistria buy Aurora Multifamily Complex For $94M

A venture of Standard Real Estate Investments and the Vistria Group has acquired a suburban Chicago multifamily complex with a low-interest loan.

The venture bought the 416-unit Haven on Long Grove apartments and townhomes in Aurora for $94 million, and that includes the $46 million interest-only Fannie Mae loan it’s assuming, CoStar reported. The price comes to more than $226,000 per unit.

CBRE brokers John Jaeger and Justin Puppi represented the seller, Miami-based Pensam Capital, which paid $77 million for the complex in August 2021.

The Fannie Mae loan matures in December 2030 and carries an interest rate of 2.63 percent, far less than current market rates, which hover between 5 and 6 percent.

Despite a nationwide dip in property values, Pensam commanded a high asking price due to upgrades to the complex and favorable loan terms, which Standard president Jerome Nichols called “a cherry on top.”

“We were very interested in Haven as a property,” Nichols told the outlet. “It stood on its own — the location and the proximity to schools, the product itself. But in this high-interest-rate environment, we’re trying to get creative on how to transact.”

The Haven on Long Grove — comprising 248 apartments and 168 townhouses on 34 acres — has undergone several renovations, including improvements to common areas, amenities and a portion of the units. Standard aims to continue modernizing the remaining units.

Despite offloading the property, Pensam remains committed to suburban Chicago’s real estate market, as exemplified by its 2021 acquisitions of the 336-unit Butterfield Oaks complex in Aurora and a 260-unit property in West Dundee. The firm paid a combined $139 million for the two sites, the outlet reported.

—Quinn Donoghue