A New York-based investor has paid $109 million for a 417-unit apartment complex west of Chicago in the highest-priced multifamily sale in the suburbs this year.
Abacus Capital Group bought Railway Plaza, a complex at 507 Railway Drive in Naperville, Illinois, earlier this month, according to DuPage County property records.
The price was higher than the approximately $96.1 million that a venture of New York-based Cantor Fitzgerald and Des Moines, Iowa-based BH Equities paid in December 2019, just a few months before the onset of COVID-19, according to public records.
The price appreciation stands out amid waves of sales well below their previous prices, and sometimes below even the value of the remaining debt, after a series of interest-rate increases. Investors are hopeful that the Federal Reserve’s recent move to make the first in an expected series of rate cuts could boost property values and increase the volume of sales.
The Naperville deal tops what had been the highest sale thus far in 2024, FPA Multifamily’s purchase of the 642-unit Reserve at Hoffman Estates complex in the northwest suburbs for just over $102 million in July. The San Francisco-based buyer renamed the property ReNew Poplar Creek
Cantor Fitzgerald declined to comment to CoStar News. Abacus and BH Equities did not immediately respond to requests for comment.
There have been a combined $2.6 billion in multifamily sales in the Chicago area so far in 2024, according to CoStar data. That follows $3.9 billion in volume last year, following two years of well over $5 billion in sales.
Built in 2000, Railway Plaza includes 13 buildings over 20.6 acres, according to CoStar data. The property is nearly 97% leased, with asking rents of $1,959 per unit and $1.85 per square foot.
Abacus’ purchase was backed by a nearly $71 million Fannie Mae loan originated by a Newmark affiliate, according to property records.
The sellers had just over $61 million remaining on a commercial mortgage-backed securities loan that was set to mature in January 2030.
Abacus has acquired 31,000 units and invested $4.8 billion in multifamily deals on behalf of investors since 2004, according to the firm’s website.
Abacus invests in markets throughout the country, including Seattle, Denver, Los Angeles, Houston, Santa Fe, New Mexico, and Jacksonville, Florida. Abacus also owns the 22-story, 105-unit Trio apartment tower at 670 W. Wayman St. in Chicago.
For the record
The sellers were represented by Newmark brokers Chuck Johanns, Liz Gagliardi and Susan Lawson.