Origin Capital Partners and Randolph Street Realty Capital have formed a joint venture to acquire The Iroquois Club, an under-performing multi-family apartment complex in Naperville, Illinois. The purchase price was approximately $38 million.
In acquiring The Iroquois Club, Origin Capital and Randolph Street Capital cite great opportunity to improve the performance and value of the asset by renovating, repositioning, rebranding and more efficiently managing the complex. As part of the investment strategy, the partnership is acquiring 238 existing apartment units. The entire complex consists of two phases and 264 total units; one phase, totaling 136 units, remains apartments while the second phase of 128 units was converted to condominiums in 2006. The conversion project ultimately stalled out in the late 2000s with 26 condo units being sold. The balance of that phase, 100 units, are now apartments.
As part of the extensive renovation in which 35 to 45 percent of the complex will be remodeled, unit improvements will include new stainless steel appliances, new kitchen and bathroom countertops and updated flooring and carpet. Additionally, new washers and dryers will be added inside these units where under previous ownership only hook-ups existed in most units. The work will be sequenced over time, beginning first with the vacant units, to avoid as much tenant disruption as possible.
Acquisition financing was provided by MB Financial. Buyer was represented in the transaction by Sean Connelly at 33 Realty.
