JV Lands Major Multi-Family Deal in Windy City

A 642-unit multi-family community in suburban Chicago has changed hands.

By Ioana Neamt, Associate Editor

A 642-unit multi-family community in suburban Chicago has changed hands in a deal secured by HFF.

Redwood Capital Group L.L.C. and New York City-based Investcorp have purchased The Reserve at Hoffman Estates from Berkshire Property Advisors for $86.3 million, according to data from Yardi Matrix. The joint venture acquired the property free and clear of existing debt.

Working on behalf of the buyer, HFF also managed to place a $64.225 million acquisition loan for the property with New York Life Insurance Co. The loan matures in 2018, according to Yardi Matrix.

Located at 875 Pacific Ave. in Hoffman Estates, Ill., the community is roughly 35 miles away from downtown Chicago and provides access to I-90. Completed in 1985, The Reserve at Hoffman Estates (previously Berkshires at Hoffman Estates) incorporates a mix of one- and two-bedroom units in 30 three-story buildings. Amenities include two outdoor swimming pools, fitness center, clubhouse, dog park, playground, and two tennis courts. The community is currently 95 percent occupied.

The HFF investment sales team representing the seller was led by managing directors Marty O’Connell and Sean Fogarty and associate director Wick Kirby. The HFF debt placement team was led by senior managing director Mike Tepedino and managing directors Michael Gigliotti and Matthew Schoenfeldt.

Image courtesy of Yardi Matrix