At the time of acquisition the occupancy rate was 92%, but Briney estimates that there is a 15% to 20% gap between the community's current rent levels and its true potential. Origin will begin the renovation work almost immediately, and “everything will be touched at the complex.”

The clubhouse will be the first thing the partners redo, and after that they will upgrade all of the units. As part of the upgrade, new appliances, cabinets countertops and hardware will be installed. Units will then be finished with new flooring, carpeting and paint.

The partnership will also oversee extensive common area upgrades. Those improvements will include refurbishing the pool and upgrading the outdoor living space, including adding an outdoor kitchen, converting the tennis courts to bocce ball and adding a dog park.

Village Park of Palatine features 15 two- and three-story buildings on a 28.370-acre site. The unit mix includes 154 studios and one-bedroom units averaging 706 square feet, 195 two-bedroom units averaging 994 square feet and 99 three-bedroom units averaging 1,225 square feet.

Briney says Village Park of Palatine is one of only a few communities in the area to have a significant supply of three bedroom units, and coupled with the town's set of excellent schools, it's part of its special appeal. “There will be opportunities for families to live in this complex and put their children in a good school system.”

This represents the second time in a little more than 15 months that Origin and a partner have acquired a suburban Chicago apartment complex. In September 2015, it formed a joint venture and acquired the Iroquois Club, a 264-unit apartment complex in Naperville, IL, for about $38 million. Since the acquisition, Origin has completed 70% of an extensive unit renovation program and increased occupancy of the complex from 76% to 90%.

“Generally speaking,” Briney says, “we are very bullish on the suburbs.” And although there aren't many opportunities like Iroquois or Village Park left, “we are absolutely on the lookout for more.”

CHICAGO—Origin Investments, in partnership with Draper and Kramer, Inc. and LEM Capital, has completed the acquisition of Village Park of Palatine, a 448-unit apartment complex in northwest suburban Palatine, IL. The class B property sold for about $48 million, or $107,000 per unit.

Investors have been eager to buy up multifamily developments in the suburbs due to strong tenant demand and the prospects for future job growth. But investors have been so enthusiastic that few value-add prospects like this remain.

“A lot of these opportunities have already been executed this cycle,” Thomas Briney, vice president of acquisitions for Origin, tells GlobeSt.com. In the case of Village Park, the previous owner looked at it as a source of cash flow. “This property has been starved of fresh capital for well over a decade.”

For Origin, that means a classic value-add investment opportunity. Over the next 30 months, the company and its partners will make significant upgrades to the complex, making it more attractive to renters and creating the opportunity to increase occupancies and rents. Origin typically holds such properties for three to five years.

At the time of acquisition the occupancy rate was 92%, but Briney estimates that there is a 15% to 20% gap between the community's current rent levels and its true potential. Origin will begin the renovation work almost immediately, and “everything will be touched at the complex.”

The clubhouse will be the first thing the partners redo, and after that they will upgrade all of the units. As part of the upgrade, new appliances, cabinets countertops and hardware will be installed. Units will then be finished with new flooring, carpeting and paint.

The partnership will also oversee extensive common area upgrades. Those improvements will include refurbishing the pool and upgrading the outdoor living space, including adding an outdoor kitchen, converting the tennis courts to bocce ball and adding a dog park.

Village Park of Palatine features 15 two- and three-story buildings on a 28.370-acre site. The unit mix includes 154 studios and one-bedroom units averaging 706 square feet, 195 two-bedroom units averaging 994 square feet and 99 three-bedroom units averaging 1,225 square feet.

Briney says Village Park of Palatine is one of only a few communities in the area to have a significant supply of three bedroom units, and coupled with the town's set of excellent schools, it's part of its special appeal. “There will be opportunities for families to live in this complex and put their children in a good school system.”

This represents the second time in a little more than 15 months that Origin and a partner have acquired a suburban Chicago apartment complex. In September 2015, it formed a joint venture and acquired the Iroquois Club, a 264-unit apartment complex in Naperville, IL, for about $38 million. Since the acquisition, Origin has completed 70% of an extensive unit renovation program and increased occupancy of the complex from 76% to 90%.

“Generally speaking,” Briney says, “we are very bullish on the suburbs.” And although there aren't many opportunities like Iroquois or Village Park left, “we are absolutely on the lookout for more.”