TGM Associates LP Acquires 576-Unit Apartment Complex in Schaumburg

By Gabriel Circiog, Associate Editor

In one of the biggest suburban multifamily purchases in over four years, an affiliate of New York-based TGM Associates LP paid $86.7 million for an apartment complex in Schaumburg, ChicagoRealEstateDaily.com reports.

Located at 10 N. Lincoln Meadows Drive, the 576-unit apartment complex was built in 1990 and was purchased by Invesco Real Estate in 1995 for $38.4 million. TGM closed the deal with Invesco on April 11, financing the acquisition with a $60.5 million mortgage from Freddie Mac that was arranged by CBRE Inc.’s capital markets group, according to county records. The property has been renamed TGM Park Meadows.

Senior vice president at CBRE’s Chicago office, John Jaeger, said the property was appealing to investors not only due to its location close to Woodfield Mall and Interstate 290, but also due to the possibility of increasing rents upon completion of needed renovations. He also said TGM represented itself in the deal. John Gochberg, TGM Chief Operating Officer, confirmed that improvements are planned for the complex in the next 12 to 24 months.

According to a report from Chicago-based Appraisal Research Counselors, the Lincoln Meadows deal is the largest apartment sale since January 2008, when the 283-unit Park Evanston was sold for $101.1 million to TIAA-CREF.

Mr. Grochberg said the Schaumberg complex is the second property TGM has owned in Illinois. The other property, Windscape of Naperville, was sold in 2007 to Sterling American Property Inc. The current portfolio of TGM includes close to 13,000 units in 23 states.

Invesco Managing Director Paul Michaels said Lincoln Meadows lived up to the firm’s expectations and, after cashing in on the investment, plans to reinvest in newer assets.

Photo Courtesy of: www.tgmassociates.com

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