Applegrad pays $31M for Schaumburg apartments
Seller paid $47M for a 396-unit property in 2014.
Sam “Simcha” Applegrad picked up an apartment complex in the northwest Chicago suburbs for $31 million, adding to the streak of multifamily trades in the area as deal volume for other commercial real estate assets dives while rising interest rates wedge pricing gaps between buyers and sellers.
While the deal’s price was about $16 million less than what the San Francisco Bay Area-based seller, Friedkin Property Group, paid for the property nearly a decade ago, it looks to have taken slightly more cash than out from a loan during its ownership.
Several LLCs affiliated with Applegrad’s New York-based firm YMY Acquisitions are listed as the buyer of the 396-unit, three-story Fieldpointe of Schaumburg apartments at 1708 Arbor Square in a deal executed Dec. 16 and documented late last month in Cook County records.
Friedkin, which Morton Friedkin helms, paid $47M for the apartments in 2014, part of the firm’s Chicago-area shopping spree underway. ADVERTISEMENT It’s unclear whether the lower sale price indicates the property sold at a loss or whether the deal included a creative financing arrangement. Friedkin took out a $49 million mortgage on the property in 2020, and it’s possible the deal involved the buyer taking over the loan for the remaining balance. YMY declined to comment on the sale. Friedkin did not respond to requests for comment.
However, losses on apartment play in the Chicago area have been rare in the last several years, even as occupancy at suburban multifamily properties dipped a bit in the past year. They were still nearly fully leased, though, at 97.5 percent occupied in the third quarter last year, down from a rate of 98 percent and higher in the past year.
The average suburban net effective rent was steady throughout last year, ending the third quarter at $1.92 per square foot. The complex includes studio, one-bedroom, and two-bedroom apartments. One-bedroom apartments lease start at $1,557 a month, with the price going up to $1,910 monthly for a two-bedroom unit.
The property was built in the 1970s and renovated in 2008. According to the firm’s website, Friedkin still owns several Chicago-area residential and mixed-use properties in the city and the suburbs of Naperville, Elk Grove Village, Aurora, and Evanston.
Other significant multifamily assets that have traded hands in the Chicago suburbs in recent months are the 586-unit Stonebridge Village Apartments in Arlington Heights for a price of about $224,000 per unit in January and a 236-unit complex in Buffalo Grove that DRA Advisors bought for $53 million in December.
Source: Sam “Simcha” Applegrad Pays $31M for Schaumburg Apartments
Randolph is a Multifamily Investment Sales Broker with eXp Commercial servicing Multifamily Buyers and Sellers in the Greater Chicago Area.