Northmarq’s Chicago/St. Louis office brokers sale of 154-unit Buffalo Creek Apartments
ST. LOUIS (Nov. 2, 2023) — Northmarq’s Midwest Multifamily Investment Sales team of Parker Stewart, Alex Malzone, Jake Lamb and Dominic Martinez recently completed the sale of Buffalo Creek Apartments in Buffalo Grove, Illinois. The 154-unit multifamily property is located at 70 S. Buffalo Grove Rd. and was built in 1972.
Northmarq represented the seller, a joint venture of Ravine Park Partners and LV Property Management, LLC, in the off-market transaction. The buyer was a New York-based private investor.
“Our team is excited to get this seamless disposition to the finish line,” said Malzone. “The buyer, who was in a 1031 exchange, was able to assume the extremely attractive Fannie Mae debt at 63% loan-to-value ratio (LTV) with four years of interest only (IO) payments remaining. The in-place debt took out a major variable in today’s interest rate environment and allowed the buyer to assume a 4.67% fixed interest rate, which is currently 150+ bps below market.”
“Buffalo Creek has been extremely well-maintained over long-term ownership, and the new owners will benefit from a superior location and value-add rent upside,” added Stewart. “The remaining IO on the existing loan will bolster new ownership’s return during the renovation period until improved income is fully captured.”
Buffalo Creek Apartments boasts one, two, and three-bedroom apartment homes, spacious floor plans and an award-winning school district. Residents enjoy a convenient location near O’Hare International Airport and easy access to I-294, I-94 and IL-53. In addition to being minutes away from shopping and entertainment, the pet-friendly community offers a suburban haven with access to downtown Chicago.
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