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400-unit Naperville complex lists as suburban market improves

Redwood Capital looks to sell Dwell at Naperville; paid $84M in 2017

Redwood Capital Group co-founders David Carlson and Mark Isaacson. (Redwood Capital, Dwell)
Redwood Capital Group co-founders David Carlson and Mark Isaacson. (Redwood Capital, Dwell)

Chicago-area home sales are hot, but in the suburbs, the multifamily market has also gained strength.

Believing now is the time to strike, Redwood Capital Group has listed its 400-unit Naperville complex, according to Crain’s. The firm hired CBRE to sell Dwell at Naperville at 1995 Yellowstone Drive.

Redwood spent $84 million on the development in 2017, according to the report. That pencils out to around $210,000 a unit. The complex, which is nearly fully occupied, has units asking up to $2,000 a month. The listing is being pitched as a value-add deal, with Redwood figuring the market is strong enough to allow for rent hikes after the buyer renovates and makes improvements.

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Redwood’s move follows the decision in late March by Connor Group to list its 321-unit Glenmuir complex in Naperville. Connor Group is reportedly asking $100 million, far above its $80 million appraisal.

Other suburban apartments to hit the market include the 420-unit Fox Valley Villages and 416-unit Aspen Place, both in Aurora, and the 204-unit Lakeside Apartments in Wheaton, Crain’s noted.

[Crain’s] — Alexi Friedman 

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