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The strong performance of new multifamily developments in Chicago’s collar counties was highlighted by investment firm JVM Realty with a pricey purchase, even amid rising interest rates that have forced sellers to pump the brakes on making most deals.
JVM, which is headed by Jay Madary and based in Oak Brook, picked up a luxury apartment complex in the far southwest suburb of Romeoville for $71.5 million, CoStar reported.
The firm will rename the complex to The Bluffs, after it was completed last year by the seller, Fiduciary Real Estate Development.
The apartment community at 501 South Weber Road has units ranging in size from junior one-bedroom units up to three-bedroom units with two bathrooms.
The homes come equipped with stainless-steel appliances, plank-style flooring, spa bathrooms and in-unit laundry. In addition, many of the units have attached garages and private patios.
“We picked JVM as a buyer as we recently concluded a prior transaction with them with one of our Wisconsin properties,” Steve Bersell, COO of the seller, Fiduciary Real Estate Development, said in the statement. “Like our prior transaction with JVM, the Romeoville transaction went smoothly from offer to closing.”
Brokers Wick Kirby, Amanda Friant and Kevin Girard of JLL represented the seller Fiduciary in its deal with JVM.
It’s the latest this year to illustrate the rise in apartment buildings values even at long distances from downtown Chicago. Collar counties have proven attractive to multifamily developers as of late, who say the jurisdictions provide more certainty regarding property tax costs than Cook County.
In another sale this year by Fiduciary, for instance, a venture of Swedish private equity firm EQT Exeter paid $86 million this summer for a 380-unit apartment complex in suburban West Dundee that the seller had completed construction on this year.
With high occupancy rates and rents on the rise, suburban apartment complexes have been drawing the attention of investors, which has allowed for landlords to sell their properties for decent profits.
Within Cook County, in the northern suburb of Glenview, Chicago investment firm Mesirow spent almost $88 million on the 239-unit luxury complex, Reserve at Glenview, along state Route 43 back in September. In Northbrook, the 290-unit Tapestry Glenview sold for $97 million to FPA Multifamily and the 272-unit Legacy at Fox Valley traded hands for $71 million in May.