CHICAGO—If the US housing market is to make a full recovery, commercial real estate providers need to bring back the vast number of units that slid into distress and foreclosure. The Davis Companies and Marquette Companies, for example, just sold The Apartments at Woodfield Crossing in suburban Rolling Meadows for $57 million, nearly three years after Davis took control of the 662-unit property in a foreclosure.

Company officials say that when took over, “the property suffered from weak management, poor physical condition and a deteriorating perception in the community.” They brought in professional management, upgraded the tenants and completed a $9 million capital improvement program. The property was 94% occupied at the time of sale.

“We acquired the note on this property in October 2010 and were able to negotiate a resolution to what at the time was a very troubled situation,” says Jonathan Davis, the CEO of the Boston-based Davis Companies. “We ultimately got control of the asset and worked with our partner, Marquette Companies, to turn around the property. I am very proud of our partnership's hard work and the successful outcome,”