(Read more on the multifamily market.)
ALSIP, IL-Questar Equity LLC, based in Lake Forest, has acquired Woodland Courts Apartments, 3621 W. 119th St. The sales price was approximately $10.3 million and the cap rate was 8%, sources say.
The seller was not disclosed but was represented by Marcus & Millichap. Equibase Capital Group LLC, based in Chicago, provided a $1.5-million mezzanine loan for the acquisition. The term for the mezzanine loan is three years, says John Didrickson, a principal with Equibase.
The interest rate was not disclosed. This is the second deal Questar has done with Equibase. M&I Bank provided senior financing for the transaction.
The apartment complex has 144 units. The complex has a total of six three-story buildings, which were constructed in 1971, on about 4.5 acres. "It is a very desirable rental community within Alsip. It is fully leased [and] there is an additional waiting list," Didrickson says.
The average apartment unit is 808 sf. The average rental rate was not disclosed, but average rent rates in the area are between $722 to $1,184 per month. Questar sees the acquisition as a value-add opportunity. "It is an attractive opportunity for them in the multifamily market," Didrickson says.
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