HFF Announces Sale of and Financing for 258-Unit Apartment Community in Suburban Chicago

CHICAGO, IL – Holliday Fenoglio Fowler, L.P. (HFF) announces the sale of and acquisition financing for Stone Crossing Apartments, a 258-unit apartment community in the Chicago suburb of Aurora, Illinois.

The HFF team marketed the property exclusively on behalf of the seller, a partnership between Graycliff Capital Partners, LLC, Buligo Capital Partners and The Ferndale Realty Group, and procured the buyer, Cunat Inc.  Additionally, HFF worked on behalf of the new owner to secure a three-year, floating-rate acquisition loan through Bridge Debt Strategies Fund Manager LLC, a subsidiary of Bridge Investment Group LLC, which currently manages over $12 billion of assets under management.

Stone Crossing Apartments is located at 1240 Nantucket Road approximately two miles south of Interstate 88 and three miles from downtown Aurora.  The property’s location offers accessibility to suburban Chicago’s major employment corridors, as well as leading regional healthcare providers and multiple retail and entertainment amenities.  Stone Crossing consists of three two-story townhome buildings comprising three-bedroom units averaging more than 1,200 square feet each and two three-story apartment buildings comprising a mix of one- and two-bedroom apartment units averaging more than 760 square feet.

Cunat Inc. acquired Stone Crossing as a value-add opportunity with plans to completely upgrade, renovate and re-brand the community under the new name, Arbor West.  Cunat Inc. will renovate unit interiors, demolish the current community buildings, and build a new leasing office, clubhouse and indoor pool.  The parking lot and landscaping will also be rehabbed, which will reposition the property into a new class of apartments in Aurora.  Home and property amenities currently include white kitchen cabinetry with brushed nickel hardware, tile backsplashes in the kitchen and an outdoor picnic area with grills.  The community was 97 percent occupied at closing.

The HFF investment advisory team representing the seller included senior director David Gaines and senior managing director Sean Fogarty.

HFF’s debt placement team representing the borrower included senior directors Trent Niederberger and Jason Bond.

About Graycliff Capital Partners, LLC: Graycliff Capital Partners is a real estate investment company focused on pursuing value-add investments in high-growth markets.  Graycliff’s principals bring over 119 years of combined experience in capital markets, construction and property management to every investment strategy pursued by the firm.  To date, the firm has raised over $230 million in equity for $800 million in real estate transactions that encompass 7,449 units managed across 36 properties.

About Buligo Capital Partners: Buligo Capital Partners is a global real estate investment firm that provides investors with the opportunity to invest globally alongside experienced operators.  With offices in Israel and the United States, as well as strategic partnerships worldwide, Buligo is able to offer its clients a broad range of investment options for different risk profiles while providing portfolio diversification across geographies and currencies.

About The Ferndale Realty Group: The Ferndale Realty Group is a Boulder, Colorado-based real estate investment company focused on the acquisition and ongoing operations (through a licensed real estate company) of apartment communities throughout the United States.

About Cunat Inc. Founded by Brian and John Cunat in 1976, Cunat Inc. has developed, acquired, rehabilitated, operated and managed dwelling rental property throughout the Midwest for over 40 years.  Cunat Inc.’s investment strategy is anchored in the repositioning of undervalued properties and operating them under the firm’s in-house property management division.  Cunat’s in-house Asset Acquisition, Asset Reconstruction and Asset Management teams work closely to identity properties that fit the company’s value-enhancement profile and develop strategic plans for the rehabilitation and long-term stabilization of each investment.

About HFF: HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry.  HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing.  HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF).  For more information, please visit hfflp.com or follow HFF on Twitter @HFF.