Sources say the price was $92,000 per unit, or $37.5 million, based on recent sales of similar properties in the area. The term of the loan is one year fixed, plus one year floating. "The all-in spread was 245 basis points over the seven-year interpolated treasury," De Kruiff says.
De Kruiff advised the buyer for the sale. Sue Blumberg, managing director with NorthMarq Capital's Chicago regional office, arranged financing with Freddie Mac through the acquisition-upgrade program. As part of the financing program, there will be interior unit renovations done to "a significant portion of the units," he tells GlobeSt.com.
The Ohio investor had sold a 740-unit apartment complex earlier this year and the acquisition of Hunters Ridge satisfied a 1031 exchange, De Kruiff says. The buyer "sees the long-term growth potential in the Chicago market," he says. The property is on the western edge of Elgin, within walking distance of a Metra train station and near Interstate 90.
The complex has a mixture of one-, two- and three-bedroom units, according to information on Marquette's website. The property has an occupancy rate of approximately 96% to 97%. Marquette had acquired the property, which was constructed in 1972, from MREFII Property III LLC in October 2004 for $25 million, or approximately $61,275 per unit, sources say.
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