Given the housing market slow-down, Capital Acquisitions and Development has decided to auction the remaining units and has hired Inland Real Estate Auctions, based in Oak Brook, IL, to conduct the auction. The sales price for the property "is anybody's guess at this point" but is likely to sell for somewhere in the "low to high $20 million range," Diliberto tells GlobeSt.com.
Capital Acquisitions and Development reportedly acquired the property at 1900 Country Dr. for about $38 million in 2005. The 396-unit complex was constructed in 1987 and includes 297 two-bedroom units and 99 one-bedroom units. "You have a good amount of units. The size of it is pretty ideal," Diliberto says. The size of the units ranges from 700 sf to nearly 1,000 sf. The company sold 103 of the units with sales prices ranging from $107,000 and $157,000.
The property is currently 88% occupied, Diliberto says. "It has not been a focus of this developer to fully lease" the property, he says. Rental rates currently range between $825 and $925. The complex's amenities include a nature walk, pool, picnic areas, lakes, tennis courts, playgrounds, a renovated clubhouse and a fireplace in many of the units. The property is near the Lake County Fairgrounds, which are being redeveloped into an approximate 800,000-sf lifestyle center by a joint venture between Developers Diversified and SKW Grayslake LLC.
The auction will occur on June 5. Inland has seen interest in the property from companies as well as individuals looking to buy units, Diliberto says. The auction will be for the 293 units to be sold to one buyer, he says. Bids will be evaluated on price as well as whether the bidder can "buy and close in a very timely way," he says. The buyer could decide to continue selling condominium units or continue renting the remaining units as apartments, he says. The projected gross rental income is $3 million and the projected net income is $1.9 million, he says.
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