Abacus Capital Group Pays $109 Million for Suburban Apartments

Abacus Capital Group has expanded its multifamily portfolio with a landmark deal in Naperville.

The New York-based investment firm purchased the 417-unit apartment complex at 507 Railway Drive from a venture of Cantor Fitzgerald and BH Equities for $109 million, CoStar reported. The price comes to $261,400 per unit. The sellers purchased it for $96 million ($230,200 per unit) in December 2019.

The sale set a record for this year, overtaking FPA Multifamily’s purchase of the 642-unit Reserve at Hoffman Estates, which closed at over $102 million ($158,900 per unit) in July.

Newmark brokers Chuck Johanns, Liz Gagliardi and Susan Lawson represented the sellers in the Naperville transaction.

Abacus borrowed nearly $71 million from Fannie Mae for the purchase, and an affiliate of Newmark arranged the transaction. The sellers had about $61 million remaining on a commercial mortgage-backed securities loan, which is set to mature in January 2030.

The property, called Railway Plaza, was built in 2000 and comprises 13 buildings situated on 20 acres. The complex is nearly 97 percent leased, with average rents of $1,959 per unit.

Chicago’s multifamily sales volume has reached $2.6 billion this year, following last year’s $3.9 billion, according to CoStar data.

Abacus has established itself as a formidable player in the multifamily investment landscape. Under the leadership of its president and co-founder Ben Friedman, the firm has secured about 31,000 units and invested $4.8 billion since 2004.

Its portfolio spans major markets, including Los Angeles and Jacksonville, Florida. It expanded its footprint on the West Coast earlier this year, paying $72.5 million for the Veda complex, a 236-unit apartment complex at 4735 Sepulveda Boulevard in Sherman Oaks.

— Andrew Terrell