Magnolia Capital Enters Chicago Market And Completes Sixth Acquisition In 12 Months
(3 months ago)
CHICAGO, Feb. 14: Magnolia Capital has acquired the 270-unit apartment high-rise, Vantage Oak Park, near Chicago, IL. Built in 2016, the asset is the first portfolio property in the Chicago market for Magnolia Capital and sixth acquisition for the growing real estate investment firm.
CBRE's local Chicago office acted as the sales broker for the transaction. This allowed the financing team, led by Brian Eisendrath and Mike Bryant, to leverage their lending relationships and local market knowledge to deliver a seamless execution from start to finish.
"We are thrilled to expand our portfolio and break into the Chicago area with a best-in-class trophy asset," said Max Peek, CEO and Managing Principal for Magnolia Capital.
CBRE's Brian Eisendrath and Mike Bryant arranged the 10-year floating rate loan on behalf of Magnolia Capital through Freddie Mac at a starting rate of 3.28%.
"We are very satisfied with Brian and the CBRE team's ability to move quickly and efficiently to meet our close," said Peek.
Vantage Oak Park is located in Oak Park, IL, a thriving suburb of Chicago. Oak Park sits 7 miles west of downtown Chicago and is a "streetcar suburb" in high residential demand due to its ample rail connections and direct access to the regional highway networks. Oak Park leads the Cook County-South suburban submarket in financial performance as defined by Appraisal Research Counselors. As of Q4 2016, the overall submarket had an annual market occupancy level of 96.5% and year-over-year rent growth of 5%.
The 21-story apartment high-rise is comprised of studio, one- and two-bedroom units with luxury finishes and modern amenities, and an average size of 889 square feet. With a walk score of 94, Vantage Oak Park is located blocks away from both the Metra and L stations, and is steps from walkable downtown Oak Park with retailers such as Whole Foods Market and Trader Joe's.
Brian Eisendrath, Vice Chairman of CBRE, comments, "The quick lease-up and current occupancy symbolize the strong demand in a high-barrier-to-entry market. We are excited to help Magnolia expand its portfolio of high quality assets."