LAKE BLUFF, IL- Prime Property Investors, based in Northbrook, IL, has put up for sale the 224-unit Deer Valley Luxury Apartment Homes here in the tony North Shore area, and expects to get about $33 million. The firm expects a quick turnaround and profit from its purchase of the complex last year.
The garden-style complex, 13 buildings of 120 one-bedroom units and 104 two-bedroom units, was built in 1991 by locally based Residential Homes of America. PPI purchased the apartments for $21.9 million in 2011, co-CEO Barbara Gaffen tells GlobeSt.com.
However, she says more than 50% of the units have been overhauled, with new finishes, stainless steel appliances, granite countertops and vinyl flooring in the kitchens and bathrooms. The renovation of the remaining units is ongoing, Gaffen says. “It was 95% occupied when we bought it, and now it’s completely full,” she says. “The market in the area is about $140,000 to $200,000 per door for class A apartments, and we think it will sell for at least $150,000 per door. We’re also debt-free.”
Gaffen says the complex has been leasing at higher rates because of the upgrades, and the successful multifamily market. “When we took over the property, the one-bedroom units were going for under $800 per month, now they are at $1,150 or more, and $1,350 for the two-bedroom units,” she says. “There’s no other apartments in the area with kitchens less than 5 years old.” Other upgrades include an outdoor pool with sundeck, a clubhouse and a fitness center, as well as all new roofs and hallways.
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