Momentum is growing in Chicago’s suburban multifamily market.
A venture of Chicago-based Laramar, last week sold a 242-unit suburban Warrenville complex, The Westlyn, for $59 million or about $245,000 per unit.
The buyer is Maryland-based Artemis Real Estate Partners, Du Page County records show. Property management firm RPM Living looks to be involved in the deal as well and is listed on a $39 million loan from Hartford Investment Management Company used to finance the transaction.
The property located at 28262 Diehl Road was developed in 2019 with a $38.6 million construction loan from BMO Bank, although it’s unclear what the total development costs were.
John Jaeger, Justin Puppi, Jason Zyck, Danny Zebowski and Pete Marino of CBRE represented the seller. Brokers and representatives of Lakeside and Artemis did not respond to requests for comment.
Artemis was likely enticed by Chicago’s strong rent growth and job market as well as the building’s location outside of Cook County.
The property contains a mix of studio through three-bedroom units, is 95 percent occupied and has an average rent of $1,971. Marketing materials noted the complex’s proximity to several corporate headquarters including Navistar, Dover Corporation and Treehouse Foods.
The materials also highlighted that “investors can easier handicap current and future tax liability,” because the property is located in DuPage County rather than neighboring Cook County.
Institutional investors have been hesitant to invest in Cook County because of its unpredictable property tax system.
Meanwhile, suburban multifamily listings have been benefiting from the region’s strong economy while steering clear of the city’s challenging political environment.
Another new build traded hands last month in a deal that came out to $315,000 per unit.
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 average price per unit in the Chicago suburbs rose 18 percent year-over-year in the first quarter, from $120,349 to $142,935, according to Interra Realty.
There were seven suburban multifamily transactions in the $10 million to $50 million range in the first quarter, compared to just 13 in all of last year.
Editor’s note: this post has been updated to correct the identity of The Westlyn’s seller.