LOMBARD, IL-A joint venture of Chicago-based Golub & Co. And New York City-based Praedium Group has purchased the 504-unit Clover Creek apartment complex here for $46.3 million, sources say. Partners Intercontinental Real Estate Corp. and Olympic Investors sold the property.
Michael Newman, president and CEO with Golub, says the site is about 95% leased. “We thought it was a pretty good Class B building, it’s not a distressed property. We think a combination of doing some real hands-on management, along with a few upgrades, will help add value to the property and take it to the next level,” he tells GlobeSt.com.
The 23-year-old complex, in the middle of Chicago’s East-West Corridor office submarket, is on 29 acres with parks, creeks and fountains. However, sources say the property sold at a loss, as the sellers purchased the complex for about $48.3 million in May 2004. Rents range from $900 to $1,470 per month.
Newman says there’s a pretty healthy demand for apartments in the Chicago suburbs, though rents have not been what they were forecasted at last year. “It’s still pretty flat, and if you want to keep a building full you still have to offer some level of concessions. It’s yet to be seen when we can push up rents,” he says.
Michael Goldman, SVP, and Michael Arnold, senior director, led Golub’s acquisition team. David Dowel, VP and head of acquisitions for Praedium in the Midwest, led the acquisition for his company. Dan Cohen, John Jaeger and Melissa Strauss with CB Richard Ellis represented the seller.
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