Courtyards Village Sells for $13 Mil

NAPERVILLE, IL-The 224-unit Courtyards Village Apartments in this west suburb of Chicago has been sold to Rochester, NY-based Home Properties for $12.8 million. The multifamily rental REIT plans to spend another $1.1 million to replace windows, add insulation and improve landscaping at the property on Route 59 north of the Fox Valley Shopping Center.

Home Properties says it expects a 9.4% initial capitalization rate but projects it will hit 10% in the second and subsequent years. Vacancy at the property, where rents average $804 per month, is just 3%. The apartment mix at the 30-year-old complex consists of 143 one-bedroom and 81 two-bedroom units in seven buildings.

Home Properties also assumed a $5.1 million mortgage at 7.88%.

The purchase was one of two completed by Home Properties, which also acquired a 435-unit complex in Silver Spring, MD. The REIT also sold six properties consisting of 1,304 units.