KBS Legacy Partners Purchases Chicago Suburban Property
- Jun 18, 2012
Lombard, Ill.—New apartment community supply has been constrained in and near the Chicago suburb of Lombard, Ill., in recent years. That made Martin’s Point, a 256-unit rental community in Lombard, about 20 miles west of Chicago, an attractive acquisition target for KBS Legacy Partners Apartment REIT.
Newport Beach, Calif.-based KBS Legacy Partners Apartment REIT announced the purchase of Martin’s Point on June 4. KBS Legacy Partners Apartment REIT is a non-traded REIT sponsored by KBS Capital Advisors LLC and Legacy Partners Residential Realty LLC of Foster City, Calif.
Currently known as Avalon Lombard, the community was built in 1989 and partially renovated three years ago. Its location near Interstates 88, 294 and 355, 20 miles southwest of O’Hare International Airport and just five miles west of exclusive Oak Brook, Ill., are among the community’s many selling points.
“Martin’s Point’s location is ideal,” W. Dean Henry, president of Legacy Partners Residential and executive vice president of KBS Legacy Partners Apartment REIT, tells MHN. It is “near large concentrations of both jobs and retail and entertainment options. Also, it is near large arterials that can take you anywhere in the region. Martin’s Point also has the unique aspect of having its clubhouse and many of its units front on a very attractive set of canals.”
The garden-style community sits on 13.2 acres and offers 201,924 square feet of rental space in one- and two-bedroom configurations. A swimming pool with sundeck, a fitness center and a clubhouse are among its amenities.
Due to a scarcity of available sites and municipal resistance to new projects, there has been very little new supply in its DuPage County submarket for many years. “And almost none is on the planning horizon,” Henry says. “We believe this will result in low vacancies and rental increases.”
KBS Legacy Partners Apartment REIT confronted stiff competition from other interested buyers in making the acquisition. The broker had 26 firms tour the community, and obtained 14 offers, Henry says.
“KBS Legacy Partners Apartment REIT was in the final four, and it was a photo finish. The broker said the defining difference was the seller’s good feeling about how we were to deal with on the most recent transaction between the parties, and the fact that our senior management had taken the time to travel and tour the asset.”
The new owner will immediately tackle renovation related to curb appeal. It will take on an overdue painting project and “sharpen up” the landscaping, with an eye to creating a better first impression for renters and prospects, Henry says.
“Then, over the next several years, upon units becoming vacant, we will rehab their interiors at the rate of approximately 10 per month,” he adds. “The phased unit rehab program will open up the kitchens for more light and socializing, and provide clean new modern cabinets and surfaces.”