Two local real estate investors are looking to sell a 550-unit apartment complex down the road from another sprawling property that recently netted the highest price of 2024 in the Chicago suburbs.
Tricap Residential Group and Wolcott Group have hired JLL brokers to seek a sale of Haven Hoffman Estates, according to a JLL brochure. The garden-style property is at 725 W. Bode Circle in northwest suburban Hoffman Estates, Illinois.
It is being offered for sale during a sluggish property sales market because of rising interest rates and other market challenges.
The volume of multifamily sales in the Chicago area thus far in 2024 is $1.6 billion, down from $3.9 billion last year and $5.7 billion in 2022, according to CoStar data.
In some cases, particularly luxury towers downtown, properties have sold for less than what it would cost to build them today.
Yet some large deals are still reaching the finish line, including San Francisco-based FPA Multifamily recently paying just over $102 million for the 642-unit Reserve at Hoffman Estates complex. The property, since rebranded as ReNew Poplar Creek, is less than 3 miles west of Haven Hoffman Estates.
It’s unclear how much Tricap and Wolcott expect in a sale. They did not immediately respond to requests for comment from CoStar News on Thursday.
One person familiar with the property estimated it could sell for around $80 million.
The Chicago-based firms bought the property, then called Autumn Chase Apartments, in April 2019. The price was $60.25 million, including the assumption of a loan, according to CoStar data.
Wolcott and Tricap have since invested an undisclosed amount on upgrades to the property, including modernizing interiors of many units to increase rents, according to JLL.
JLL is marketing the property as an opportunity to continue the renovation program on the more than 50% of the units that have not yet been overhauled and push up rents, according to the brochure. The property’s studio, one- and two-bedroom units are 98% leased overall, with renovated units renting for a more than $200 premium, according to JLL.
Asking rents are $1,636 per unit and $2.19 per square foot in the complex built in 1970, according to CoStar data.
For the Record
The sellers are represented by JLL brokers Kevin Girard, Mark Stern, David Gaines and Zachary Kaufman.