Draper and Kramer Acquires Chicago Luxury Apartments
CBRE facilitated the sale of the 180-unit rental property that was sold as part of a 1031 exchange. The new ownership assumed management of the community.
North 680
Draper and Kramer Inc. has acquired North 680, a luxury community in Schaumburg, Ill., as part of a 1031 exchange following the company’s sale of Fieldpointe of St. Louis, a 318-unit property in Maryland Heights, Mo.
CBRE’s Chicago office facilitated the sale of North 680.
“It’s a high-quality asset,” Blas Puzon, Draper and Kramer’s senior vice president of acquisitions, told Multi-Housing News. “Quick lease-up proved that latent demand exists for Class A properties in this suburban market coupled with little to no competition at this price point.”
Located at 680 E. Algonquin Road, the 180-unit community consists of 176 residences in four elevator buildings, and four tri-level rental townhomes in two buildings. The property offers one- and two-bedroom units, ranging from 665 to 1,588 square feet. The townhomes feature two-bedroom units.
All units boast open layouts, 9-foot ceilings, oversized walk-in closets and well-appointed kitchens with large islands and granite countertops. Some units have built-in workstations and mudroom hall trees. North 680 also includes 65 attached garages, 85 detached garages, and 196 uncovered parking spaces.
Completed last year, the property has all the modern amenities expected of a new luxury apartment, including a clubhouse, pool, fitness center and party room. As such, the new owners are planning minimal upgrades to enhance the amenity experience.
“The asset is built to stand the test of time; we feel the income stream will be resilient through the different points of a cycle,” Puzon said. “The surrounding area has a relatively high median household income and the school district is highly rated.”
Booming Location
North 680 is just minutes from Schaumburg’s commercial area, which serves as a suburban epicenter of office and retail and home to nearly 5,000 businesses that employ over 85,000 people. Major employers include Motorola, Zurich’s North American HQ’s, IBM, Comcast, Verizon Wireless, Genworth Financial Capital and the Nielsen Company. Nearby retailers include Woodfield Mall, IKEA, Lego Discovery World, Costco, Whole Foods, and Dick’s Sporting Goods. The property also has easy access to the I-90/I-290 interchange.
“Location and the surrounding neighborhood very much play into the property’s appeal,” Puzon said. “For example, the property is across the street from the redevelopment of the old Motorola Campus, which we expect to generate substantial economic activity.”
In October, Draper and Kramer teamed with Edge Principal Advisors on the $131 million sale of Wheaton Center, a 758-unit community in Chicago’s suburbs, to FPA Multifamily.
Image courtesy of Draper and Kramer
