Magnolia, Goldman Seek Buyer for Oak Park Apartments

Magnolia Capital and Goldman Sachs are taking another shot at selling a west suburban apartment high-rise, even if that means getting less than what they paid for it six years ago.

The firms have hired CBRE brokers to market the 21-story, 273-unit Vantage Oak Park, at 150 Forest Avenue in Oak Park, CoStar reported.

While an asking price has not been revealed, the property is expected to fetch somewhere around $90 million, almost $330,000 per unit, according to a source familiar with the listing. That would mark a loss for Magnolia and Goldman, which bought the building for $102.75 million, a little over $373,000 per unit, in 2018.

However, it would at least be enough to pay off $66.6 million debt tied to the property. The loan was watchlisted in December, as rising interest payments sucked up rent revenue, despite the property’s relatively strong performance.

Chicagoland’s multifamily market has enjoyed surging demand and steady rent growth in recent years, but that doesn’t mean it’s immune to the impact of rising interest rates, which have depressed property values and contributed to subdued sales since last year.

Vantage Oak Park, built in 2016, has an occupancy rate of nearly 97 percent, with rents at $3.13 per square foot, the outlet reported. The owners first tried to sell the building in September 2022, after winning a tax appeal that dropped its appraised value from $90 million to $54 million.

CBRE is playing up the offering as an attractive investment due to its prime location and leasing status. Prospective owners are encouraged to explore opportunities for rent increases through unit upgrades and added amenities.

Commercial spaces within the tower, including a Cooper’s Hawk winery and an Edward-Elmhurst Health medical clinic, are fully leased, further enhancing its appeal.

The highest-priced multifamily sale in Chicago this year happened earlier this month, when FPA Multifamily paid $288,000 per unit, $144 million for the 500-unit Paragon Chicago tower in South Loop. Despite the high price, the sale appeared to come at a loss for the developers, as it cost $171 million to build.

—Quinn Donoghue