A suburban Chicago apartment complex traded hands for $315,000 per unit this month amid the market’s blazing multifamily market.
San Diego-based investor Stu Bone of Bone Investment Management bought the 90-unit Lakeland Lofts in Bloomingdale for $28.3 million from developer Noah Properties.
The local firm developed the complex and spent at least $22 million completing it, according to public mortgage records, although the total development costs are unclear. The Chicago-based developer bought the land for the project in 2021.
Bone and representatives of Noah Properties did not respond to requests for comment. CBRE’s John Jaeger, Justin Puppi, Jason Zyck and Jillian Jaeger represented the seller in the deal.
Bone took out an $18.4 million loan from Baltimore-based M&T Realty Capital Corporation to fund the purchase; the bank then sold the mortgage to Fannie Mae.
The property’s location in DuPage County was likely a selling point. In Cook County, out-of-state investors have been wary of the county’s unpredictable property tax system.
Bloomingdale, about 25 miles west of Chicago, benefits from the region’s strong job market and rent growth without facing the political challenges of the city.
Noah Properties is hardly the only firm looking to capitalize on the region’s multifamily hype.
In the last month, at least half a dozen largescale multifamily complexes hit the market in Chicagoland.
The number of multifamily transactions in the suburbs jumped 65 percent year-over-year in March, according to Interra Realty. The average price per unit rose 18 percent to $142,935 during the same time period.
While institutional capital continues to sit on the sidelines, independent investors are swooping in on Chicago’s multifamily market.
A historically limited pipeline of development has also driven rent prices up in recent years.