Albion Residential (Albion), a Chicago metro-based real estate firm focused on the acquisition, development and operation of Midwestern rental apartments, today announced it has acquired Birchwood on Sterling, a 719-unit apartment community in Palatine, Illinois, a Northwest suburb of Chicago, and plans $23 million in significant renovations and updates.
Voya Investment Management provided Albion a $94.2 million loan to embark on the project and the loan was arranged by Matt Schoenfeldt at JLL Capital Markets.
“We’re pleased to acquire Birchwood on Sterling, and significantly invest in it to allow it to reach its full potential and position as a vibrant apartment destination for decades to come,” said Craig McGowan, Vice President at Albion Residential. “Albion has had tremendous success recently reinvigorating apartment communities in Columbus, Cleveland, Pittsburgh, and Cincinnati, and we’re proud to take on this opportunity in our home market. We’re very excited by the potential of Birchwood, and we will be significantly revitalizing it in a way that greatly benefits current and future residents.”
Albion will immediately begin work on its $23 million renovation and revitalization package of Birchwood, which was built in the 1970s, with full completion expected in early 2024.
As part of its revitalization, apartment units which have not been recently updated will be modernized. This will include a combination of complete kitchen renovations, new doors, and carpeting, in unit washer and dryer additions in select units, improved flooring, and renovated bathrooms.
Common areas and amenities are also in line for a significant upgrade. This will include an expanded and updated Club Room, a newly built fitness center, renovation of the pool including additions of cabanas and day beds, extensive landscaping, and new outdoor amenities including addition of fire pits, bocci ball and dog runs.
Albion is highly active in its home market of Chicago, where in addition to the Birchwood investment, the company developed and owns Albion Oak Park, Albion Evanston, and Albion Highland Park which have all been completed since 2018.
