Origin Investments, in partnership with Draper and Kramer and LEM Capital, has come full-circle with The Clayson (formerly Village Park of Palatine) and sold the 448-unit multifamily complex in Palatine, IL to Turner Impact Capital. JLL Capital Markets represented the partnership and brokered the sale.
“The Clayson is a great example of the turnaround of an underperforming property after adhering to an investment thesis and operating strategy that aligned a robust capital improvement program with a keen focus on the resident experience,” said Ken Lodge, Senior Associate, Origin Investments.
The partnership acquired the asset in December 2016. The capital improvement program for The Clayson totaled approximately $9 million with a significant portion of that dedicated to transformational upgrades to the property’s amenities, landscaping and common areas. The program also cured deferred maintenance issues including roof replacements, parking lot resurfacing, site drainage overhaul, and a replacement of all balconies.
Further, improvements were made to approximately 50% of units, including new appliances, cabinets, countertops and hardware. Units were also finished with new flooring, carpeting and paint. The partnership was able to quantify and showcase a strong average return on cost for the improvements, demonstrating to potential buyers that there remains significant value to be added to the asset.
In the end, the Origin, Draper and Kramer and LEM Capital partnership, along with Marquette Management as property manager, achieved the partnership’s objective to complete an extensive capital improvement plan while enhancing the overall resident experience and building The Clayson’s standing and reputation in the community.
The Clayson features 15 two and three-story buildings on a 28.370-acre site. The unit mix includes 154 studio and one-bedroom units averaging 706 square feet, 195 two-bedroom units averaging 994 square feet and 99 three-bedroom units averaging 1,225 square feet.
Marty O’Connell and Kevin Girard with JLL Capital Markets represented the sellers in the transaction.