Dealmaker: Avanath Acquires Two Apartment Communities for $72M

Avanath Capital Management, Irvine, Calif., acquired two metro Chicago multifamily properties totaling 668 units for $72.2 million.

The properties, 582-unit Hinsdale Lake Terrace in Willowbrook, Ill., and 86-unit Drexel Court in Chicago, are both mid-century era affordable housing properties in economically thriving submarkets, said Avanath President and CIO John Williams. He noted the acquisition increased Avanath’s metro Chicago footprint to more than 840 units.

The real estate investment manager paid $63 million for Hinsdale Lake Terrace and $9.15 million for Drexel Court through its Avanath Affordable Housing III fund. 

Located in southeast DuPage County, Hinsdale Lake Terrace is an upscale submarket with a diverse employment base, Williams said. “The neighboring Downers Grove and Oak Brook communities serve as the community’s largest employment hubs,” he said. “Oak Brook is home to Ace Hardware’s headquarters, Q-Tech Communications and TreeHouse Foods. In Downers Grove, State Farm, Blue Cross Blue Shield and Ensono employ a total of nearly 2,000 people. These growing employment hubs will drive long-term rental demand for the property.”

The other acquisition, six- story Drexel Court Apartments, is in Chicago’s South Shore neighborhood, one of the largest distinct apartment markets in Chicago, Williams said. “Drexel is just one block south of the University of Chicago and one mile from Jackson Park, home of the planned Obama Presidential Center and Library,” he said. “This new library is projected to generate more than $31 million in food and retail development in the region, driving long-term value and demand.”

Williams said Drexel Court has a large management office and meeting area. “We plan to repurpose this space into a variety of community amenities that are better suited for renters such as a fitness center, media room and a health and wellness center,” he said.