CHICAGO—Lowe Enterprises Investors has justacquired the 612-unit Bourbon Square apartment community innorthwest suburban Palatine for an undisclosed amount. The bigpurchase is another signal that although there is no significantnew supply on the horizon, the local area will continue to seeupgrades to its existing housing stock. The previous owner hadwanted to covert the development into condos, officials from theLos Angeles-based Lowe tell GlobeSt.com. The crash derailed thoseplans, but their firm has the wherewithal to launch a multi-yearrehab of the development and will start work in the next 90days.

“I've been familiar with this asset for a number of years,” saysAndy Sands, the company's senior vice presidentwho leads its investment activities. The previous owner bought it“late in the last cycle; their timing wasn't great.” But buying thedevelopment fits well into Lowe's business plan, which focuses alot of attention on workforce housing built in the 1980s or 1990sand that provides renters with affordable options.

“All of the competing projects around have been upgraded and areinstitutionally-owned,” Sands adds. Bourbon Square's clubhouse didrecently get a makeover, but the apartments “have been relativelyuntouched for a number of years.” However, “the property has greatdemographics and so does the community. It's also a great piece ofland.”