Kiser Group recently brokered the sale of 2000 Illinois, a 128-unit, five-story property in Aurora, Illinois. FPA Multifamily acquired the asset, located at 2000 W. Illinois Avenue for an undisclosed amount. Kiser Group’s Matt Halper and Danny Mantis represented both the buyer and seller in the transaction.
“2000 Illinois demonstrates the value investors continue to see in both mid-size suburban apartment properties and workforce housing,” said Halper. “Because of the size and renter base of the asset, we were able to position our marketing so it would appeal to local and national investors alike. After nearly 30 tours, we received various offers from highly credible buyers and the cap rate at the transaction price was 5.64 percent.”
The property features 104 one-bedroom and 24 two-bedroom units, 150 surface parking spaces, 52 covered parking spaces and an outdoor pool and sundeck. The asset was originally constructed in 1973. In 2014, the seller entered into a Land Use Restriction Agreement (LURA) with IHDA which stipulated that 25 percent of the units be income-restricted to 60 percent area median income for a 10-year period.
“While many local investors were unfamiliar with the LURA that was put in place by IHDA, we found that investors more familiar with market-rate multifamily properties were most attracted to the sale,” said Mantis. “This was a nuanced transaction because of the mix of affordable and market-rate residents. With the limited inventory of workforce housing located in the suburbs coming to market each year, there continues to be strong interest from all types of investors for this product type.”