California Investors Buy Complex for $23M

"A big part of the California investment corporation's business is focused on acquiring and renovating affordable housing properties for a long-term hold," says Kyle Shoemaker, a multi-family investment specialist with Marcus & Millichap, who represented the seller in the deal. "This was a good fit for them because it was a large enough property near a major market that had a potential to be a part of their long-term portfolio. Overall, the building and physical structure was pretty good, so the renovations they are doing are fairly minor, mostly updating the interior of units."

Joining Shoemaker in representation of the seller were Scott Harris, SVP of investments, Paul Davis, FVP of investments, and Andrew Daitch, VP of investments. The company also represented the seller in the deal. "This was not the seller's primary business," Shoemaker says. "They had owned the property since it was developed almost 30 years ago, and it was just time to redistribute their resources to different uses."

Rental rates at the property range from $916 to $1,067 a month, Shoemaker says. The 327,000-square-foot apartment community sits on more than 20 acres near Dundee Crown High School and Perry Elementary School. The property is in the far northwest suburban submarket.

"The market changed a lot in the last year, because most groups who buy this type of property use tax-credit financing, which is increasingly difficult to complete," Shoemaker tells GlobeSt.com. "There is always a lot of demand for property with housing assistance payment or Section 8 contract because there are a lot of investors who focus on that type of asset. They don't trade hands very often, so any time you bring one of those to the market there's going to be a lot of interest."