Mesirow is betting on strong rental demand, tax certainty and proximity to redeveloping retail with the listing of a Vernon Hills apartment complex.
The Chicago financial services firm is selling its 294-unit apartment complex at 1155 Museum Boulevard in Vernon Hills, Crain’s reported. The asking price wasn’t disclosed. Mesirow purchased the complex in 2018 for $87.1 million, or $296,000 per unit, according to CoStar Group.
The seven-story complex, the Mil’Ton, is 94 percent occupied, with an average unit size of 1,117 square feet and average rents of $2,546 per month, or $2.28 per square foot. The rents range from about $2,500 to $3,800, according to listing sites.
Mesirow tapped CBRE brokers John Jaeger, Justin Puppi and Jason Zyck to market the property.
The apartments benefit from proximity to the Hawthorn Mall, which is undergoing a $252 million redevelopment, along with Mellody Farm, a 270,000-square-foot retail and residential center completed in 2019.
Regency Centers’ Mellody Farm development has been so successful that Vernon Hills officials are looking at early retirement for the tax increment financing district created for the area.
Suburban rental demand is strong, outpacing the city core even as elevated interest rates have made commercial deals more challenging. Suburban Chicago rents rose 4.4 percent year over year in the fourth quarter to $2.09 per square foot, according to Integra Realty Resources.
Another potential draw for buyers is the complex’s “Non-Cook County tax certainty.” Mesirow secured an agreement with the local assessor that stabilizes the property’s assessed value at $77.3 million, with tax increases capped at 3 percent annually for the next three years.
— Judah Duke
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