Praedium JV buys Illinois apartment complex for $46.3m

Teaming up with developer Golub & Company, Praedium has bought Clover Creek from Intercontinental Real Estate and Olympic Investors for just shy of its 2004 valuation.

Praedium Group has acquired a 504-unit apartment complex in Illinois for an estimated $46.3 million in a joint venture with developer Golub & Company.

The New York-based private equity real estate manager said in a statement it bought the nine-building Clover Creek multifamily property, in Lombard, from Intercontinental Real Estate Corporation and Olympic Investors.

According to data provider Real Estate Analytics, Praedium and Golub acquired the property earlier this month for an estimated $46.3 million, just shy of its 2004, $48.3 million sale price to Intercontinental and Olympic. RCA added that Praedium and Golub financed the deal with a $34.8 million first mortgage from Freddie Mac. A spokeswoman for Golub declined to comment.

The garden-style apartment complex is roughly 30 miles outside of Chicago and is currently 95 percent leased. David Dowell, Praedium vice president and head of acquisitions for the US Midwest and Northern California regions, led the deal for Praedium, while Golub senior vice president Michael Goldman and senior director Michael Arnold led the Chicago-based developer’s acquisition team.

Last month, Praedium also closed a joint venture with Houston-based investment firm Mosaic Residential to acquire the 248-unit garden-style apartment complex, Dove Valley Ranch, in San Antonio, Texas, for an undisclosed sum, according to RCA. That followed the January acquisition of Lincoln Shores, a 631-unit apartment property in St Petersburg, Florida, for $24.2 million in a venture with investment firm Greystar Management. Lincoln Shores was acquired for a cap rate of 9.9 percent, according to RCA, from UBS Realty.

Between January and August this year, Praedium has also sold an estimated $42.9 million of apartment properties in los Angeles and New York, totalling 370-units.