R.I.G Nabs Apartments in Chicago Suburb for $89M

A local investor has paid a pretty penny for an apartment complex in Elk Grove Village, shedding light on the strong demand for multifamily assets in suburban Chicago.

R.I.G. Capital bought the 579-unit Willow Crossing at 1031 Charlela Lane for $89.3 million, or about $154,200 per unit, Crain’s reported.

The seller, JP Morgan Asset Management, paid $80 million ($138,100 per unit) in 2018, although it’s unclear how much the firm spent on improvements. Newmark’s Chuck Johanns, Liz Gagliardi and Susan Lawson brokered the deal on behalf of JP Morgan.

Despite high interest rates hindering commercial property sales across the metro, suburban apartment properties continue to attract investor interest due to strong rental demand. Net monthly rents for suburban apartments rose by 4 percent year-over-year in the first quarter to $2.06 per square foot, the outlet reported, citing appraisal and consulting firm Integra Realty Resources.

The Willow Crossing deal follows the recent sale of a 272-unit apartment complex in Aurora, which traded for roughly 40 percent more than its previous sale price. This trend indicates that suburban landlords are willing to test the market with hefty asking prices.

“The opportunity to acquire an institution-grade asset from an owner like JP Morgan, who put significant dollars in the property, together with the strong fundamentals that we’re experiencing across Chicago, really fit our criteria of quality assets in quality locations,” R.I.G. Capital principal Ari Tessler told the outlet.

Willow Crossing, built in 1981, is over 96 percent leased, according to CoStar Group.

In 2023, JP Morgan Asset Management refinanced the property with a $60.8 million loan from Regions Bank, allowing it to pay off a $55 million loan that Wells Fargo issued in 2021. The firm’s initial financing strategy upon acquisition is unclear.

R.I.G. Capital, an affiliate of Chicago-based Royal Imperial Group, owns several other multifamily assets in the Chicago area, including the 396-unit Fieldpointe of Schaumburg, the 200-unit Brookdale Lakes in Naperville and the 181-unit Lofts on Arthington in Homan Square.

—Quinn Donoghue