Consistent with the "hot" apartment acquisition market storming the Midwest, an affiliate of Radco Investments, an Atlanta private equity firm, has purchased the 226-unit Brittany Court Apartments community in Geneva.
The affiliate purchased the apartment complex from Shodeen Inc., the Geneva-based developer that built Brittany Court and has managed the property since 1989. The transaction price was estimated at $123,200 per unit.
The Brittany Court property contains an on-site fitness center, meeting room and swimming pool and is 95-percent leased.
David Patzelt, president of Shodeen Group, said the firm wanted to capitalize on increased property values, brought about by the formidable apartment market boosted by rising rents and high occupancies.
In 2012, 41 apartment buildings were sold for a combined $1.039 billion, which is the second-highest annual total ever recorded, according to real estate firm CBRE. The record, $1.063 billion, was set in 2006 during the height of the real estate boom.
"These numbers are just the latest indication of how attractive the apartment market has become to investors of all types. With the way the economic recovery has been playing out in other commercial real estate sectors, apartments are likely to remain a shining star for a while longer," Patzelt said.
The sale will also allow Shodeen to focus on developing and building several new luxury apartment properties, namely the Mill Creek Village Center, where there is a waiting list. In addition, Shodeen will continue developing and building more luxury apartments in other West suburban communities such as Aurora, Elgin and DeKalb, where several projects are in the pipeline.
The new luxury apartment products being developed by Shodeen Group include such amenities as granite countertops, stainless steel appliances, security entry systems and heated underground parking.