Aurora Apartment Complex Purchased by Major Investor

October 13, 2012

chicago real estate suburban apartmentsRecently investors have shown a strong interest in the apartment aspect of suburban Chicago real estate. Now New York investor TGM Associates is purchasing the Chesapeake Landing complex in west suburban Aurora.

What is notable about TGM?

The company owns more than 13,000 apartment units in 23 states. Yet TGM only owns one apartment complex in the Chicago area, which is the 576-unit TGM Park Meadows Apartments in Schaumburg. The investor purchased Park Meadows for $86.7 million last March, the highest price paid for a multifamily suburban piece of real estate since 2008.

According to Appraisal Research Counselors, a Chicago-based consulting firm, investor demand for suburban apartments has been consistently strong. Last year there were 24 sales of suburban multifamily properties that totaled $454 million.

The Chesapeake Landing complex is currently held by Fannie Mae and Freddie Mac, so TGM will need to either take on the property’s debt or work out a successful agreement with the lenders.

Either way, major investment firms taking an interest in Chicago property is always a good sign that more suburban real estate transactions will take place as we head into 2013.

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