A subsidiary of California-based Steadfast Income REIT has acquired a fee simple interest in the Willow Crossing Apartments, a 579-unit multifamily residential community in Elk Grove Village, IL, for $58 million, excluding closing costs.
The capitalization rate for the Willow Crossing property as of the closing of the acquisition was 6.34%. Occupancy at the Willow Crossing property was 98% as of September 23, 2013.
HFF announced in July that it had been selected to market the property on behalf of the seller, Golub & Company. Managing directors Sean Fogarty and Marty O’Connell along with executive managing director Matthew Lawton were handling the marketing.
The buyer, SIR Willow Crossing, financed the purchase with a combination of proceeds from its ongoing public offering and a loan in the aggregate principal amount of $43.5 million from Berkadia Commercial Mortgage LLC.
Willow Crossing is a 579-unit residential community constructed from 1977 to 1981 and renovated from 2011 to 2013. It is comprised of 11 two- to six-story residential buildings, a clubhouse and office and two common pool/storage buildings on an approximately 27.5-acre site.
The units at Willow Crossing consist of a mix of one, two, and three-bedroom units averaging 841 square feet per unit. Average in-place monthly rent at the Willow Crossing property was approximately $948 as of September 23, 2013.
Unit amenities at the Willow Crossing property include walk-in closets, full appliance packages, disposals, icemakers and a porch/patio. Property amenities include a new clubhouse/leasing office, parking garages, two swimming pools, a dog park, common laundry centers, volleyball court, playground, business center, onsite storage, fitness center, a grill/picnic area and dog-friendly facilities.
Steadfast Management Company, Inc. will serve as the property manager for the Willow Crossing property. Pacific Coast Land & Construction, Inc. will provide construction management services with respect to capital improvements and renovations from time to time for the Willow Crossing property.
With the acquisition of the Willow Crossing property, Steadfast Income REIT has invested over $1.36 billion in 58 properties in 11 states representing 14,460 units and 30,125 square feet of commercial space.