In this update, the Austin, TX, office of Berkadia Commercial Mortgage LLC says it recently closed $43.5 million in financing through Fannie Mae for the acquisition of Willow Crossing Apartments in suburban Elk Grove Village by Steadfast Income REIT. Berkadia Vice President Matt Greer helped secure the 10-year, floating-rate financing. Loan terms include a 75% loan-to-value ratio and a variable interest rate tied to LIBOR. The 579-unit development is currently 97% occupied.
“This property is located among the prime suburbs of Chicago, a real estate market that is surging with activity,” said Greer. “We were able to capitalize on Berkadia's expertise and reputation in this market, as well as our extensive experience with Fannie Mae, to deliver favorable loan terms for the borrower.”
The original story appears below:
CHICAGO—The market for multifamily properties remains strong, especially in areas that have benefited the most from the developing recovery. Golub & Company, for example, just sold Willow Crossing, a 579-unit multifamily housing community in northwest suburban Elk Grove Village, to Steadfast Income REIT. Steadfast has been on a bit of a shopping spree lately, especially for communities located in the country's mid-section. The terms of the transaction were not disclosed.
“We believe the Steadfast portfolio is unique because it is concentrated in the central corridor of the United States in markets that are predominantly outperforming the nation,” Ella Shaw Neyland, president of California-based Steadfast, said earlier this year as the trust passed the $1 billion in assets benchmark. The trust has bought dozens of apartment communities in Alabama, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Oklahoma, Ohio, Tennessee and Texas.
HFF represented the Chicago-based Golub & Company and Alcion Ventures, in the transaction. Managing Directors Marty O'Connell and Sean Fogarty, as well as Executive Managing Director Matthew Lawton, led their sales team.
Willow Crossing sits adjacent to Interstate 290 on 27.5 acres at 1031 Charlela Ln., close to O'Hare International Airport and about 20 miles northwest of downtown Chicago. The property, which was renovated in 2013, consists of 11 apartment buildings with one-, two- and three-bedroom units averaging 950-square-feet each. Community amenities include a clubhouse, fitness center, two swimming pools, business center, playground, dog run, sand volleyball court and garage parking for 339 vehicles.
This is not Steadfast's first Chicago-area purchase. Earlier this year, it bought Deer Valley Luxury Apartment Homes, a class A community of 224 apartments in north suburban Lake Bluff, for $28,600,000. The property was purchased by Northbrook-based PPI in June 2011 for $21,900,000.
“With low vacancy rates and improving employment numbers, Chicago is a good buy right now,” said Barbara J. Gaffen, co-CEO of PPI.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
