Waterton Buys More Apartments in Sought-After Chicago Suburbs

Waterton has added a substantial apartment property to its growing suburban portfolio.

The Chicago-based firm, led by CEO David Schwartz, purchased the 310-unit Avant at the Arboretum, at 450 Warrenville Road in Lisle, for $77.5 million, Crain’s reported. That’s $250,000 per unit.

Terms of the deal were not disclosed, but the sale represents an $8.9 million return on investment for the seller, Oak Brook-based apartment investor JVM, which acquired the four-story property in 2017 for $68.6 million, or $221,000 per unit. Berkadia’s Pete Evans and Richard Evans represented JVM in the sale.

Waterton plans significant improvements to the complex, including renovations to unit interiors and upgrades to common areas and amenities. These enhancements will build on the company’s strategy of modernizing its properties to attract and retain tenants.

Waterton owns and manages 7,000 apartment units in the Chicago area, including this acquisition. Waterton’s portfolio also includes South Loop properties such as the 346-unit Grand Central and 496-unit Elle.

Waterton’s purchases highlight the growing demand for rental housing in Chicago’s suburbs, as the area continues to attract residents and investors. Recent property sales in nearby Glendale Heights and Aurora have shown similar markups, indicating that the suburbs remain a lucrative area for multifamily investors.

“The enduring strength of fundamentals in suburban Chicago is attracting the most sophisticated investors from around the country,” Evans said.

Situated along the Interstate 88 corridor, Lisle has become an attractive location for renters due to its proximity to major employment centers. The median rent in DuPage County rose by 4.9 percent year over year in the first quarter of 2024, reaching $2.09 per square foot, according to Integra Realty Resources.