A strong outlook for rents in the Chicago area appears to be enough to offset higher interest rates and stir the multifamily market in the suburbs, where a Los Angeles investor has put an 838-unit complex on the market.
JRK Property Holdings has not publicly disclosed its asking price on the Residences at Arlington Heights, at 2134 South Goebbert Road, about 25 miles northwest of the Loop, Crain’s reported.
CBRE has the listing, and marketing materials suggest the property is on the block for the first time in 10 years.
JRK Property paid $78 million for the now 52-year-old complex in 2014, which comes to about $93,000 per unit. The price puts the property in the mid-market for multifamily, and was the investor’s first foray into Chicago. It later added the Residences at Lakeside in Lombard, paying $67.4 million for a 504-unit complex, or about $134,000 per unit.
Suburban markets to the northwest of Chicago saw rents for Class B and Class C apartments increase by 5.5 percent in the first quarter compared with a year earlier, according to CBRE. That trend looks to hold, with no new units expected to hit the market through next year.
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The Residences at Arlington have gotten more than $20 million in renovations under JRK Property’s ownership. It is now fully leased, and marketing materials list an average monthly rent of about $1,500, or $2 per square foot.
It isn’t the only big suburban complex up for sale. Another mid-market property in Des Plaines is billed as a 918-unit “workforce housing complex,” according to Crain’s, and there is a 310-unit property currently up for sale in Lisle.