JEM Buys 245-Unit Rental Complex for $14M

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WAUKEGAN, IL-Apartment Investment & Management Co., headquartered in Denver, CO, has sold the Fox Crest apartment complex to Los Angeles-based JEM Realty Advisors. The sales price was nearly $14.5 million for the apartment community at 2805 Glen Flora Ave., here. The seller was represented by senior managing director Matthew Lawton, director Sean Fogarty, director Marty O’Connell and director Dave Nachison, all with Holliday Fenoglio Fowler LP. The property was free and clear of existing debt.

The apartment complex has one-, two- and three-bedroom units with an average unit size of 816 sf. The property is currently 93% occupied. The average rental rate at the time of closing was $770 per unit, Fogarty tells GlobeSt.com. Amenities include a swimming pool, tennis courts and a business center. The buildings were constructed in the early 1970′s. JEM will likely upgrade the property with improvements to the bathrooms and kitchens or the landscaping, Fogarty says.

JEM has been looking to acquire properties in the Chicago area and, in March, closed on the purchase of Autumn Grove, in Downers Grove, IL, says Fogarty, who was not involved in that sale. Fox Crest was attractive to JEM because it is located in a stable submarket where there is not a lot of new supply, he says. The multifamily market in the Chicagoland area, as a whole, is “solid” with a lack of new supply, Fogarty says. There is continuing to be a burn off in concessions and increases in rents due to the lack of new supply, which is due in part to the trend of condo conversions the past two-to-three years, he says.