Avanath Pays $72M for 2 Chicago-Area Affordable Communities

The company acquired Hinsdale Lake Terrace for $63 million from the Laramar Group, and paid $9.2 million for Drexel Court, which it acquired from DMI Real Estate Group.
Hinsdale Lake Terrace
Hinsdale Lake Terrace

Avanath Capital Management has acquired two affordable housing communities totaling 668 units in the Chicago metropolitan area. The assets, Hinsdale Lake Terrace—located in suburban Willowbrook—and Drexel Court, were acquired through Avanath’s institutional fund, Avanath Affordable Housing III, for a total of $72.2 million.

“This acquisition increases our footprint in the region, bringing our portfolio in the Chicago metro to more than 840 units,” said John Williams, president & CIO of Avanath Capital Management, in a prepared statement.

According to Yardi Matrix data, Avanath acquired Hinsdale Lake Terrace for $63 million from the Laramar Group, and paid $9.2 million for Drexel Court, which it acquired from DMI Real Estate Group.

Family-Sized Floor Plans

Located at 16 W. 150 Honeysuckle Rose Lane, Hinsdale Lake Terrace is a 582-unit family-oriented apartment community. The property features large floor plans, including three-bedroom townhomes that meet the housing needs of families.

Many of today’s multifamily properties feature very small unit sizes,” said John Williams, president and chief investment officer of Avanath Capital Management. “Avanath strategically seeks out properties with larger units that offer more space for families. This gives us a key differentiator in the region from the start.”

Hinsdale Lake Terrace’s amenities include a business center, barbecue and picnic area, playground, basketball courts and swimming pool. Also offered is the unusual amenity of a 3,400-square-foot on-site recreational center.

The community’s location in Southeast DuPage County places it squarely in a submarket that features high-quality schools and a diverse job base. Major employers in the area include Ace Hardware, Q-Tech Communications, TreeHouse Foods, State Farm, Blue Cross Blue Shield and Ensono.

Avanath plans to undertake a number of capital improvements at the property—including updating community spaces, unit upgrades and deferred maintenance issues—to enhance the overall value of the asset and improve resident life.

South Shore Location

Located at 6140 S. Drexel Ave. on Chicago’s South Side, Drexel Court Apartments is a six-story, 86-unit affordable housing community featuring one-, two-, three- and four-bedroom floor plans.

The family-oriented community is within steps of the CTA’s Cottage Grove Green Line station and the 63rd Street Metra Station, and also provides direct access to Lake Shore Drive and Interstates 90 and 94.

Chicago’s revitalization is creating a significant need for quality affordable housing, especially for families,” Williams said in prepared remarks. “In fact, Drexel is located just one block south of the University of Chicago, and one mile from Jackson Park, home of the planned Obama Presidential Center and Library. The new library is projected to generate more than $31 million in food and retail development in the region, driving long-term value and demand for Drexel Court Apartments.”

The surrounding South Shore enclave is known as one of Chicago’s largest distinct apartment markets. Earlier this year, Kiser Group arranged a four-building multifamily portfolio sale at the border of South Shore and South Chicago neighborhoods. 

Image courtesy of Avanath Capital Management