JLL Capital Markets completed the sale and financing of the new, luxury Apartment Homes at Kelmscott Park located in the greater Chicagoland’s affluent North Shore community in Lake Forest, Illinois.
JLL represented the sellers, Focus and funds managed by Castlelake, L.P., and worked on the behalf of the buyer, Intercontinental Real Estate Corporation, to originate the 10-year Fannie Mae loan. The loan will be serviced by Jones Lang LaSalle Multifamily, LLC, a Fannie Mae DUS lender.
On a per-unit basis for residential components only, the sale exceeds the previous suburban Chicago multi-housing record of approximately $436,000 per apartment home set by the 2018 sale of 1620 Central in Evanston. This trade also marks the first sale of a Class A, suburban, multifamily property in 2020 and the only institutional suburban trade in the second quarter thus far.
“We’re extremely pleased about the sale of the Kelmscott Park apartments, as it shows great positivity and optimism for the real estate and development industry during an unprecedented time in our city and country,” said Tim Anderson, CEO and founder of Focus. “This unique multifamily community fulfills the new and growing demand from empty nesters for upscale rental apartments in the North Shore and it serves as an irreplaceable asset in any portfolio. With the help of the city of Lake Forest, we were able to activate an otherwise stagnate municipal site and deliver a variety of new housing to the community.”
Apartment Homes at Kelmscott Park consist of three, three-story buildings totaling 111 homes that average 1,220 square feet, touting elegant design elements, including wall-to-wall windows and sophisticated fixtures and finishes. The apartments are steps away from Lake Forest’s charming Market Square and the Metra Rail and are proximate to 11 Fortune 500 firms in Lake County.
One of the most desirable Chicago suburbs, Lake Forest offers residents top-rated public schools, a pristine private community beach along Lake Michigan and vast parkland, all while boasting the lowest tax rate in Lake County. Given high barriers to entry in Lake Forest, Apartment Homes at Kelmscott Park is the first and only institutional apartment community in the town. It is also part of a 10.7-acre planned community featuring condominiums priced over $650,000 and $1.4 million single-family homes.
A sought-after renters-by-choice community, the Kelmscott Park apartments is 92 percent occupied with a majority of renters age 50 and older. The community sparked interest from empty nesters and retirees looking to downsize and take advantage of the apartments’ luxurious amenities and low maintenance living with the benefit of no property taxes.
Steve Centrella and Chris LaFrance led the transaction for Intercontinental.
“We are very pleased with this transaction and to have the opportunity to add such a high-quality asset to our portfolio,” Centrella said.
The JLL Capital Markets Investment advisory team includes Marty O’Connell, Wick Kirby, Kevin Girard and Amanda Friant. Financing was procured by Matt Schoenfeldt and Chris Knight.