Multi-family developer Grand Lifestyles has secured $47 million in agency-backed financing for the acquisition of a residential complex in the northern Chicago metropolitan area. The loan was structured and provided by financing adviser Greystone through US mortgage agency Freddie Mac. The investor is using the funds to finance the purchase of the Foxboro Apartments in Wheeling, Illinois. The parties involved did not disclose the precise purchase price.
The property comprises 400 residential units and has seen recent capital expenditure. In January 2020, Marquette Companies acquired the property in an off-market transaction for $54.25 million from Partnership Concepts. A renovation programme was subsequently carried out, comprehensively modernising just under half of all units.
Stable demand in Chicago suburban market
According to Eric Rosenstock, Senior Managing Director at Greystone, suburban locations in the greater Chicago area continue to offer attractive acquisition opportunities. He noted that this market is supported primarily by dependable rental demand alongside limited new supply in the multi-family sector. The Foxboro Apartments offer Grand Lifestyles the opportunity to expand its portfolio in the Wheeling submarket with an established residential asset that benefits directly from recent upgrades and solid fundamentals.
Built in 1977, the development is located at 470 Foxboro Drive, around 28 miles north-west of central Chicago. The site comprises nine buildings offering a mix of one- and two-bedroom flats. In addition to the living accommodation, the property offers various communal amenities.
- —Clubhouse with lounge and business centre for residents
- —Leisure facilities including a fitness centre, swimming pool and tennis courts
- —Outdoor amenities including a dog park and a sand volleyball court
Continuation of regional expansion
For Grand Lifestyles, this transaction does not represent the first acquisition of its kind in the region. As early as September, the firm secured a $35.5 million loan backed by Freddie Mac through Greystone. That capital was deployed for the acquisition of the Ponds of Naperville residential complex in Naperville, Illinois. With this latest acquisition in Wheeling, the company continues its expansion strategy in the state's rental housing market.
