LOS ANGELES, CA - JRK Property Holdings has acquired Clover Creek, a 504-unit apartment community in suburban Chicago in a transaction brokered by HFF.
Built in 1986, Clover Creek is located in Lombard, IL, a premier suburban Chicago submarket in the heart of DuPage County, 30 minutes west of downtown Chicago. Clover Creek also benefits from its proximity to the Illinois Technology and Research Corridor (ITRC), one of the principal economic centers in suburban Chicago and the home to the headquarters of seven Fortune 1,000 companies. Clover Creek is located 10 miles west of the ITRC along I-88.
Clover Creek offers a variety of one-, two- and three-bedroom floor plans in seven, four-story and two, two-story buildings on a low-density 34-acre site. Common area amenities include a swimming pool, playground, soccer field, volleyball court, bark park, and clubhouse with Internet café, fitness center and business center. With approximately 60% of units still in original condition and the remaining 40% also primed for a renovation, JRK plans to capitalize on the asset’s dated finishes.
This is the second significant investment for JRK in Chicago. One of the largest multifamily owners in the United States, JRK entered the market in 2014 with the acquisition of The Residences at Arlington Heights, an 838-unit community in Arlington Heights, located 20 miles north of the Clover Creek property.
“Clover Creek provides us with a unique opportunity to acquire another sizeable institutional quality asset in suburban Chicago where we can benefit from economies of scale to minimize operating costs and deliver quality rental housing in a supply constrained market,” said JRK Senior Vice President and Head of Acquisitions James Bloomingdale. “We intend to spend close to $15,000 per unit to drastically improve the interior units and common areas to better suit the strong demand for a higher quality product in the area.”
Clover Creek was acquired out of the firm’s newly closed $330 million JRK MF Opportunities II L.P. fund, which targets value-add multifamily assets built before 1990. Through its prior $300 million fund, which was launched in 2012, JRK acquired 14 properties totaling more than 6,000 units throughout the United States.
Sean Fogarty, Marty O’Connell and Amanda Friant from HFF represented both parties in the transaction.
About JRK Property Holdings: JRK Property Holdings is a Los Angeles-based real estate investment firm. Backed by approximately $5 billion of investment capital, JRK’s portfolio includes 32,000 multifamily units, and luxury and flagged hotels located throughout the United States.