Cushman & Wakefield’s Midwest multifamily advisory group brokered the $9.6 million sale of Carriage House Apartments, a 17-building, 136-unit workforce housing property located at 4344 McClure Avenue, in the northern Chicago suburb of Gurnee, Illinois.
Cushman & Wakefield’s Brad Smith, Jason Stevens and Todd Stofflet represented the seller, Steadfast Apartment REIT III, Inc., of Irvine, Calif., in the transaction, which closed at a six cap, making it one of the highest values for similar properties in the area constructed in the 1970s. The buyer was GP Property Management of Lake Geneva, Wisconsin.
Steadfast purchased the property in 2016, and completed upgrades to the one- and two-bedroom units including installation of new appliances, refinishing of countertops and redoing floors and carpeting. The new owners are planning additional improvements, including new cabinets and cosmetic enhancements across the overall complex. Upon the time of sale, the property had 97 percent tenant occupancy. The property is located just minutes from Gurnee Mills shopping and outlet mall and Six Flags Great America.
“Rent growth in Northeast Lake County has averaged three percent over the past 30 months and occupancies have hovered around 95 percent,” said Smith. “Combined with high barriers to entry for new construction in the area, this asset is poised for long-term growth and strong returns.”
