CHICAGO-An entity controlled by Eagle Management, based here, has acquired two apartment complexes with a total of 258 units. The properties are Grand Oaks, a 150-unit complex at 36033 N. Grand Oaks in Gurnee, IL, and Waters Edge, a 108-unit complex at 712 Waters Edge Dr. in Lake Village, IL. Grand Oaks was reportedly acquired for nearly $12.1 million and Waters Edge was reportedly acquired for more than $6.8 million.
Don Trossman and Rick Tannenbaum, both managing directors with Chicago-based Cohen Financial, secured more than $17.3 million in financing for the acquisitions. The financing had an 80% loan to value. The loan has a 30-year amortization with some interest only and standard prepayment penalties, Trossman says. He would not disclose a cap rate for the sale but said that the appraisers probably used a cap rate of below 6.5%.
The two apartment complexes have a mix of one, two and three-bedroom units, Trossman says. Grand Oaks Apartments is 98% leased with some of the units being Section 8 housing with below-market rents. Waters Edge Apartments is 95% leased. Grand Oaks rents for between $845 to $1,250 per month, and Waters Edge rents for $820 to $915 per month. "Their rents are at or below market and the market has been tightening," Trossman says.
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