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Redwood Buys 400-Unit Apartment Complex

WESTMONT, IL-The Fountains of Stone Crest is approximately 94% occupied and sold for about $40 million.

By Gina Kenny | Updated on June 11, 2008

WESTMONT, IL-Redwood Capital Partners, based in Chicago, has acquired an apartment complex at One Fountainhead Dr., here. The 400-unit complex was acquired from AvalonBay Communities, headquartered in Alexandria, VA. The complex, which had been known as Avalon at West Grove, is being renamed Fountains of Stone Crest, says David Carlson, managing partner with Redwood.

Sources say the sales price was slightly more than $40 million. Carlson says the actual sales price was less than $40 million, but would not disclose the true amount. The sale had a “high six cap rate” between 6.75% and 6.9%, Carlson tells GlobeSt.com.

The property is in DuPage County, viewed as one of the fastest growing counties in the region and has great demographics, Carlson says. The apartment community consists of 20 two-story buildings on nearly 17.4 acres. The property also has a 5,300-sf clubhouse that contains a fitness center, racquetball court, sauna, business room and business center, as well as an outdoor heated swimming pool, carports, storage, on-site laundry, playground and picnic area. The community was constructed in two phases in 1966 and 1975 and was renovated in 1999, and has 200 one-bedroom units and 200 two-bedroom units. The average unit size is 971 sf. The complex is about 94% occupied, Carlson says. Westdale, based in Dallas, will handle the management of the property.

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