Eagle Management Buys 206-Unit Landings

LAKE ZURICH, IL-Eagle Management has acquired the 206-unit Landings of Lake Zurich apartment community from Landings Acquisition Co. Constructed in 2001, the 10-building complex at 25 N. Buesching Rd. just traded hands in an off-market deal. Apartment Realty Advisors Chicago principal Debbie Corson and sales associate Susan Lawson represented Landings Acquisition in the deal, which was financed by Highland Park, IL-based Eagle using FNMA debt.

“The interest level that we were getting for that property in Chicago was pretty great and the sellers were looking at it in terms of what kind of cap rate they could get,” Corson tells GlobeSt.com. “They felt it was a pretty favorable cap rate given economic conditions. Obviously sale prices have changed over the past couple of years, but this was a pretty aggressive price, given the numbers and what’s happening in the economy.”

Corson declined to disclose a sales price for the property, which was essentially sold off-market. The deal closed less than three months from the listing agreement execution, receiving a total of seven bids.

“We certainly marketed it to qualified buyers that we knew were already in the market, but it was not at all broadcast that it was on the market, mainly because the owners were sensitive to the staff (of the Landings) and didn’t want upset things by bringing a lot of people through,” Corson says. “It was a win-win situation. They chose us because we had just gone through a very expensive marketing campaign with another property and were already pretty close to who was in the market.”

The 89%-occupied property offers a mix of one- and two-bedroom units, which features amenities including nine-foot ceilings, private patios or balconies, extra storage, all electric kitchens, walk-in closets, washers and dryers, gas fireplaces and scenic views. The apartment community offers residents a clubhouse with fully-equipped kitchen and large screen TV, outdoor pool with sundeck, fitness center, business center and jogging path. The property is 37 miles northwest of downtown Chicago, and offers proximity to Illinois Route 12 and US routes 59, 22 and 53, as well as shopping, dining and entertainment options.

“There is very little quality product on the market at all now, and the buyer thought this was a rare opportunity to get a good property that was a good long-term hold in a market in which they already owned assets,” Corson says. “They really feel that the Chicago market is going to continue over time to be a good market to invest in for the long haul. The great thing about Chicago is that it’s a bit city, but for the size of the city, there are relatively few transactions so when you get a good quality asset, Chicago’s a pretty good place to invest.”

The property is located in the north suburban Chicago submarket. “There aren’t a lot of these assets for sale and from a sales standpoint, the market has been pretty stagnant,” Corson says. “There have not been many transactions at all, but from a rental standpoint, these northern Chicago suburbs are holding up as well as anywhere in the US. Obviously in a bad job market you’re going to suffer, but given economic conditions, these submarkets have held up pretty well.