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Clover Creek Apartments
Investor demand for suburban multifamily assets set a record for transaction volume last year. While things have been quieter thus far in 2017, there is still demand for value-add assets like Clover Creek apartments in Lombard, which Blackstone Group sold to JRK Holdings for $67M, Crain's Chicago Business reports.
Blackstone acquired the 504-unit property for $54.1M in March 2015 and is earning a 24% return with the sale. The key was a spike in rents on 72 apartments that Blackstone rehabbed. After renovating these units, rents jumped $175/month, or $2,100 annually.
JRK believes it can achieve similar rent growth by renovating the other apartments. It plans to spend $15K/unit to compete with Class-A product in the market.
