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NAPERVILLE, IL-A fund managed by Hartford-based UBS has acquired Thornberry Woods, 7501 Gladstone Dr. The 280-unit apartment complex was bought for $39.2 million from Lincoln National Life Insurance Co., based in Fort Wayne, IN. The cap rate "with trailing numbers, was a sub five," says Ralph DePasquale, senior investment advisor with the Chicago office of Hendricks & Partners.
The buyer is acquiring the property "trying to add to their portfolio," DePasquale says. "They really like the Chicago suburban area, as well as Downtown Chicago." DePasquale and Art Wadlund represented the seller. The property was marketed as part of a three-property portfolio, which also included the Estates at Crossroads in Duluth, GA and the Estates at Mira Vista in Denver.
Thornberry Woods was constructed in 2002. The apartment complex is near major highways, but is also adjacent to the 200-acre Greene Valley Forest Preserve with 14 miles of bike and walking trails nearby, DePasquale says. "It is a great location in terms of being on 75th Street. It has great visibility," he says. The property has 14 two-and three-story buildings with a total of 260,190 rentable sf.
The complex is a mix of one-and two-bedroom units. Unit amenities include walk-in closets and washers and dryers in addition to gas fireplaces in some units. The complex also has individual garages, a clubhouse with a leasing center, business center and fitness center. Unit sizes range from 780 sf to 1,259 sf with an average unit size of 929 sf, according to the marketing brochure for the property. The rental rates range from $945 to $1,492 with an average rent of $1,122. The net operating income for 2006 was nearly $1.7 million, with an annualized 2007 figure of nearly $1.9 million and pro forma net operating income of nearly $2.2 million, according to the marketing materials.
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