Albion Residential bought Bourbon Square, a 612-unit community at Lake Cook Road and Illinois Route 53 in Palatine, from Los Angeles-based Broadshore Capital Partners, reported Biznow.
At almost $140 million, or $228,000 per unit, it’s the highest price ever paid for a suburban Chicago apartment property, a testament to continued multifamily investment strength, despite rising interest rates.
The previous record was set in January, when Ellyn Crossing, a 1,155-unit property in Glendale Heights, sold for $137 million.
Biznow said Albion will invest $30 million or more into renovations at Bourbon Square, which Broadshore predecessor Lowe Enterprises Investors acquired for $97 million in 2014.
Renovations include new kitchens, bathrooms, flooring and washers and dryers. Amenities will also be upgraded, and the building’s exterior will be painted.
Albion financed the acquisition with a senior loan from Wells Fargo and mezzanine financing from Chicago-based Walton Street Capital, according to Biznow. The financing represented about 65% of the cost of the acquisition and renovation.
The sale was brokered by Newmark Chicago Senior Managing Directors Elizabeth Gagliardi, Susan Lawson and Chuck Johanns.
