The Opus Group took advantage of the growing buzz around suburban Chicago’s multifamily market and cashed out on its investment in its complex known as Dash Downers Grove.
The developer sold Dash Downers Grove to Chicago-based investment firm Nuveen for $65 million in a deal that closed this month, according to public records. The sale of the 7-story, 167-unit property works out to about $389,000 per unit.
Opus took out a $35 million construction loan in 2021 to fund the project at 926 Maple Avenue and opened the property to residents in May 2023. Although it’s unclear how much additional capital Opus invested in the development, the $65 million sale likely generated a healthy windfall for the firm.
When the property hit the market, it was about 91 percent leased, with an average monthly rent of $2,738, or $3.17 per square foot.
The sale came on the tail of RentCafe releasing a ranking that tied suburban Chicago and Miami as the number one multifamily markets in the country. The ranking was compiled by analyzing the number of days apartments were vacant, apartment occupancy rates, number of prospective renters competing for an apartment, percentage of renewals and share of new apartments recently completed.
A tight lending environment and high construction costs has made it hard for developers to keep up with demand. Just 2,500 Class A units are expected to come online this year compared to 3,500 last year.
Sales of suburban Chicago apartments seem to be outperforming those in the urban core, as well. On the same day that the Dash Downers Grove property sold, JLL’s investment arm announced it sold its 28-story West Loop tower at 180 North Jefferson Street, for $76 million. The buyers, Milbourne Capital LLC, bought it for 20 percent less than its last sale price of $96.4 million.
Nuveen, which is the alternative investment arm of the Teachers Insurance and Annuity Association of America, has been beefing up on multifamily assets, including paying $103 million for another Chicagoland property last year, a 336-unit complex in north suburban Vernon Hills. Neither Nuveen nor Opus could be reached for comment.
CBRE’s John Jaeger, Justin Puppi and Jason Zyck represented the sellers for Dash Downers Grove and 180 North Jefferson.