Origin Investments Adds Monroe Aberdeen Place to its Portfolio
Origin acquired the property on behalf of its IncomePlus Fund from Michigan Avenue Real Estate Group, the original developer of the property. Chicago-based multifamily brokerage firm Kiser Group represented Origin Investments in the off-market transaction.
CHICAGO—Locally-based Origin Investments has acquired the 120-unit Monroe Aberdeen Place apartment building in the West Loop here for $65.8 million.
Origin purchased the property on behalf of its IncomePlus Fund from Michigan Avenue Real Estate Group, the original developer of the property. Michael D’Agostino, senior director with Chicago-based brokerage firm Kiser Group, represented Origin Investments and the seller in the off-market transaction.
Monroe Aberdeen Place was developed in 2018. The units, which average 1,118 square feet, feature include 10-foot ceiling heights, crown molding throughout, full depth stone countertops and full size washer/dryers. Some units also feature private rooftop decks. Monroe Aberdeen Place also offers an above market one parking space per unit.
At the time of acquisition, the property was 99% leased. The unit mix features 25 three-bedroom units, 92 two-bedroom units and three one-bedroom units.
“Monroe Aberdeen came online only two years ago and while it is a stabilized asset, there continues to be great opportunity to maximize net operating income and the value of the property at this popular, high-quality asset,” says Thomas Briney, director, Origin Investments.
Origin says it will implement market standard rents and parking fees, and provide quality hands-on management to create additional value and enhance the tenant experience at the property.
One of the significant factors influencing the Aberdeen Place transaction is the uncertainty that exists for commercial and rental properties in the City of Chicago and Cook County. A hefty property tax increase is anticipated. That expectation had an impact on the asking price for the property. A careful and thorough evaluation and projection of the property tax situation allowed Origin to be very comfortable with the returns that can be produced under both the best- and worst-case scenarios, the company states.
“The property tax situation in Chicago and throughout Cook County continues to give investors great pause,” Briney notes. “Yet as we evaluated all aspects of this acquisition—the location, quality of construction, and unique value creation opportunity—and got comfortable with the best- and worst-case property tax scenarios, we moved aggressively forward to close this transaction.”