(Read more on the multifamily market.)
HOFFMAN ESTATES, IL-A group based in Boston has acquired the Park Place apartment community, 845-875 Pacific Ave., for $66 million. BVF II Park Place LLC bought the 642-unit community from Park Place Apartments LLC, based in Barrington. The cap rate was "in the five-ish range," says Ralph DePasquale, senior investment advisor with Hendricks & Partners.
"The buyer is a group out of Boston that owns other properties here in the Chicago area and wanted to add to their portfolio," DePasquale says. The seller had owned the apartment community since it constructed it in phases from 1985 to 1988, he says. DePasquale and Bill Montana negotiated for the seller.
Park Place consists of 33 three-story apartment buildings and a two-story clubhouse. The apartment community is on more than 64 acres at the northeast corner of Bode and Barrington roads. The apartment community has 63 one-bedroom units with the rest being a variety of two-bedroom unit types. The community is 93% occupied, DePasquale tells GlobeSt.com. The units ranges from 800 sf to 1,100 sf, with an average unit size of 966 sf.
Amenities include fireplaces in each unit, and 86 of the apartments have in-unit washers and dryers, according to marketing materials for the property. The buyer plans renovations to the property, including upgrades such as the installation of washers and dryers in all of the units, DePasquale says. The apartment complex has a pool, tennis court and 7,000-sf clubhouse, which wasn't used much, he says. There is also a possibility of converting some of the apartment units to condominiums. The village of Hoffman Estates approved the possibility of a condominium conversion last year. A total of 282 apartment units could be converted into condominiums, according to the marketing materials.
"It is a great location on Barrington Road in a high-growth area in Hoffman Estates," DePasquale says. Barrington Road has a decent traffic count, giving the property high visibility, he says. The property is across from the Poplar Creek Forest Preserve and is near Interstate 90. Also nearby in Hoffman Estates is the Prairie Stone Business Park, the Sears Centre Arena and Cabela's. The Sun Island Hotel Water Park is also being developed in the village.
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