Friedkin Realty Pays $42M For Des Plaines Apartments
It will be interesting to see where the total transaction volume for suburban multifamily assets lands at the end of the year; we've been astounded by the deals happening. The latest transaction involves Friedkin Realty, which bought a 144-unit building in Des Plaines for $42M.
Kingston Pointe at 1646 River St in the north suburb originally was planned for condos, but moved to apartments after the 2008 real estate collapse. Sherman Residential bought the asset for $34.8M in 2014, so that's a sizable ROI for the seller. The building is a rare suburban TOD, two blocks from the Des Plaines Metra station.
Suburban multifamily has been a hot sector for investors throughout 2016, with sales in the mid- to high eight figures becoming the norm. This is Friedkin's second suburban multifamily acquisition in the past month; the firm also purchased Arbors of Brookdale, a 281-unit development in Naperville, from Prime Property Group for $60M. CBRE's John Jaeger and Dan Cohen repped Sherman.