CHICAGO—The recession hit many in the real estate world hard, but it also created some opportunities. Cleveland-based APM Management LLC, for example, just paid Windy City RE LLC $33 million for Mount Prospect Greens, a 344-unit, 14-building apartment complex in northwest suburban Mount Prospect. Since 2010, Windy City assembled the property from five different owners, rebranded the complex, renovated 30% of the units and increased rents significantly. Kiser Group, a Chicago-based broker, represented both the buyer and seller in the transaction, which closed in late December 2014.
“It was a huge effort to buy properties from five different owners over a three-year period,” says John Meyer, senior managing director at Kiser. “Windy City also started a big process to upgrade the units. They're an opportunistic group, and once they add a certain amount of revenue, they're ready to exit.”
Located at 1958-2036 W. Algonquin Rd. on a 20-acre parcel, the complex was formerly known as Colonial Greens Apartments. Selling the 14 buildings as one cohesive apartment complex helped Windy City achieve the sale price of $33 million, a high water mark for this type of property, Meyer adds.
The renovations included the installation of new stainless steel appliances, new laminate floors, granite countertops and all new bathrooms. The property has a clubhouse and basketball court, and it includes 121 one-bedroom, one-bath units, 204 two-bedroom units with one to 1 ½ baths, and 19 three-bedroom, one-bath units. Nearly 80% of the apartments also have balconies. Rents range from $850 to $1250. Tenants currently occupy 97% of the units.
The high occupancy will help APM reach its long-term objectives, but the company could also take the opportunity to add value to the property with more renovations. “APM Management is a major owner of apartments, and they're after the stable cash flows,” Meyer says. “They'll put their own type of renovation work into it.”
APM owns several large apartment complexes throughout Illinois, Ohio, Kentucky and Pennsylvania. Company officials have an in-depth knowledge of the northwest suburban market since some of these properties sit adjacent to Mount Prospect Greens.
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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.
