Dealmaker: Berkadia Brokers Two Deals Totaling $75M
Tucker, Michael firstname.lastname@example.org
Berkadia, New York, brokered two deals in Illinois and California totaling $74.9 million.
Berkadia Senior Director of Investment Sales Ralph DePasquale sold 172 units within Optima Old Orchard Woods, a Class A multifamily development in Skokie, Ill.
Seller Optima Inc., Glencoe, Ill. developed the condominium community, but when some of the project's units did not sell it converted them to rental apartments. Buyer Trilogy Real Estate Group, Chicago, plans to make minor renovations and market the units as Class A rentals.
The $44.2 million price reflects a $256,977 per-unit price.
"The amount of interest this sale generated and the offers the seller received are both strong indications of the desirability of the asset, as well as the broad-based strength of the Greater Chicago market," DePasquale said.
Chicago area vacancy fell to 4.7 percent at the end of 2015 while asking rents advanced 3.4 percent year-over-year to $1,504 per month.
In Lakewood, Calif., Berkadia Senior Managing Director Dean Zander represented Advanced Real Estate Services, Irvine, Calif. when it purchased Olivewood Apartments from Interstate Equities Corp., Los Altos, Calif., for $30.9 million on March 31.
Zander said Advanced Real Estate Services plans to renovate the property and rebrand it The 5800 Apartment Homes. ARES assumed a $16 million loan and plans to add $6 million to improve the 149-unit property.
"This unrenovated, vintage property was appealing to a great number of investors due to its potential for improvement and its location in a very strong Greater Los Angeles submarket," Zander said. "Lakewood offers over 4.5 million square feet of retail shopping and the largest automall in the country. ARES owns a significant amount of other assets in the area and was excited about the reposition play."
South Los Angeles ended 2015 with just 3.9 percent apartment vacancies, Zander said.