Kiser Group, Chicago’s leading mid-market commercial real estate brokerage firm, announces the sale of Mount Prospect Greens, a 344-unit, 14-building apartment complex on a 20-acre parcel in Mount Prospect, Ill., which closed in late December 2014. Cleveland-based APM Management LLC paid $33 million for the property.
Located at 1958-2036 W. Algonquin Road in northwest suburban Mount Prospect, the complex was formerly known as Colonial Greens Apartments. The seller, Chicago-based Windy City RE LLC, assembled the property from five different owners since 2010 and rebranded the complex to Mount Prospect Greens in 2013. The seller also renovated 30 percent of the units and increased rents significantly in the past few years, according to John Meyer, senior managing director at Kiser Group, who represented both the buyer and seller in the transaction.
“It was a huge effort to buy properties from five different owners over a three-year period,” Meyer said. “Windy City also started a big process to upgrade the units. They’re an opportunistic group, and once they add a certain amount of revenue, they’re ready to exit.”
By selling the 14 buildings all as one cohesive apartment complex, Windy City was able to achieve the sale price of $33 million, which is a high water mark for this type of property, Meyer said.
Renovations of approximately one-third of the units include new stainless steel appliances, new laminate floors, granite countertops and all new bathrooms. The property has a clubhouse and basketball court, and it includes 121 one-bedroom, one-bath units, 204 two-bedroom units with one to 1 ½ baths, and 19 three-bedroom, one-bath units. Nearly 80 percent of the apartments also have balconies. Rents range from $850 to $1250. The property is 97 percent leased.
The complex meets the buyer’s long-term objectives, including the opportunity to add value to the property with more renovations. “APM Management is a major owner of apartments, and they’re after the stable cash flows,” Meyer said. “They’ll put their own type of renovation work into it.”
APM Management owns several large apartment complexes throughout Illinois, Ohio, Kentucky and Pennsylvania. Some of their properties are adjacent to Mount Prospect Greens.
Located near the intersection of Algonquin and Busse roads, Mount Prospect Greens is near several large employers such as Caremark Rx, Bosch Tools, MetLife and O’Hare International Airport.
