John Hancock Makes A Big Splash In Suburban Multifamily
Chicago multifamily asset sales this year can be divided into Streeterville and the suburbs, and the burbs may be outpacing downtown with the number of assets changing hands. The latest notable deal is a mid-eight-figure sale in Oak Park.
John Hancock Real Estate bought Oak Park Place, a 204-unit apartment building at 479 North Harlem Ave, for $68M from the Tennessee Consolidated Retirement System. The acquisition set a new 2016 per-unit sale price of $330k/unit, according to Crain's. High occupancy rates and expanding rent spreads are whetting investor appetite for suburban multifamily. Oak Park's location on the Chicago border certainly makes for an attractive selling point. The building's value was also enhanced by a nearby Trader Joe's.
John Hancock gets a relatively new apartment building, albeit one in need of some freshening. Oak Park Place was built in 2009 but with a flood of apartments in the village's pipeline including Golub's $90M, 270-unit Vantage Oak Park, expect John Hancock to start renovations to keep up with today's amenities and unit finishes. [Crain's]