VERNON HILLS, IL — Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., has acquired The Atworth at Mellody Farm, a 260-unit luxury multifamily community in Vernon Hills, Illinois, from AEW Capital Management, Focus, and Atlantic Residential.
The apartment community was developed in 2018 adjacent to Mellody Farm, an upscale dining and retail center destination within the affluent Lake County community in Chicago’s northern suburbs. The Atworth offers unmatched walkability, high-end amenities, and proximity to numerous major employers, according to Jake Niles, Director of Acquisitions – West at Passco Companies.
“The Atworth at Mellody Farm is a strong addition to our portfolio, fulfilling all the criteria we look for when it comes to sourcing top-tier multifamily assets in premium locations positioned for growth,” explains Niles. “High demand for this community was demonstrated by an unprecedented 10-month lease-up. Residents benefit from exceptional walkability to various destinations, including Whole Foods and other popular retail options, as well as frequent Metra rail services.”
In addition to walkability and convenient access to one of the highest concentrations of Fortune® 500 companies in the country within Lake County, residents also benefit from convenient commutes to additional employment opportunities in the heart of Chicago.
“Lake County offers outstanding demographics, an educated workforce, and exceptional school systems,” states Niles, who notes that the investment is also bolstered by a limited new development pipeline in the region. “The county added more than 20,000 jobs over the last four years, and is a large hub for employers in the continuously growing technology, manufacturing, and healthcare industries.”
According to Niles, Passco’s ability to secure a luxury property in one of Chicago’s strongest markets was a rare opportunity that was executed seamlessly due to the team’s prior relationships with the seller.
“The Passco team worked with AEW Capital Management in 2017 when we acquired The Parker in Alexandria, Virginia from the firm. Based on the success of that transaction, all parties were eager to come together again to negotiate this win-win acquisition,” Niles continues.
Peter W. Evans and Richard G. Evans of Moran & Company Midwest represented both parties in the transaction.
The Atworth’s 7-acre site is divided into several community common areas to create a resort-style feel. These include: The Conservatory, a two-story lounge with complimentary coffee, Wi-Fi, a computer and printer, two televisions, and a large fireplace; The Courtyard, which features a large swimming pool and sundeck with grilling stations, cabanas, hammocks and a fire pit; The Game Loft, equipped with billiards, shuffle board, table tennis, foosball, and two large televisions; and The Tasting Room with seating arrangements for casual or formal events and high-end appliances.
Additional community features include a bike room, pet grooming stations, indoor parking garage, and luxury fitness studio with state-of-the-art cardio machines, and a yoga room.
The community offers 16 studio, 137 one-bedroom, 61 two-bedroom, 20 two-bedroom plus den, and 26 three-bedroom units ranging in size from 556 to 1,465 square feet.
Unit features include washer and dryers, quartz countertops, tile backsplashes, stainless steel appliances, roller shades, luxury vinyl plank flooring in two different color combinations, and spacious walk in closets.
The Atworth at Mellody Farm, currently at 97% occupancy, is located near the prominent intersection of Route 21 and Route 60 at 1111 N. Milwaukee Avenue in Vernon Hills.
About Passco Companies, LLC: Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multifamily and commercial properties throughout the U.S. Passco offers a full set of real estate services including asset and property management, leasing, as well as property development and construction.Headquartered in Irvine, California, Passco currently has $3 billion assets under management across the country and is actively growing its portfolio in primary and secondary markets throughout the United States.
About AEW Capital Management: Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world’s leading real estate investment advisors, AEW and its affiliates manage $76.5 billion of property and securities in North America, Europe and Asia (as of 9/30, 2019). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris, Düsseldorf, Hong Kong, Singapore, and Sydney, as well as additional offices in eight European cities. For more information please visit www.aew.com
About Focus: Focus is a Chicago-based developer and general contractor, that since 1993, has utilized an integrated delivery model to produce a diverse portfolio of distinctive real estate. The places and spaces the company brings to life mirror the collaboration between its vertically integrated, multi- disciplinary teams driven to manifest success. As a result, Focus has delivered real estate to the Chicago market valued at over $1.8 billion. Including projects in Chicago’s Fulton Market, Circa922, the Parker Fulton Market and 167 N Green (currently under construction), as well as suburban projects like The Atworth at Mellody Farm and Kelmscott Park. In addition, Focus offers construction management services to 3rd parties and has built projects valued at over $895 million for external clients. Our construction staff averages 15 years of experience in the industry and has an expansive knowledge of all building types.
About Atlantic Residential: Atlantic Residential is a private commercial real estate firm based in Atlanta with regional offices in Chicago and Ft. Lauderdale. Formed by Richard & Andrew Aaronson in 1995, the firm has been responsible for the construction of over $2 billion of institutional quality residential and mixed-use projects containing over 6,000 residential units since its inception. The company develops luxury apartment and mixed-use buildings and communities in three primary density configurations; Urban High-Rise, Near Urban Mid-Rise, and Suburban Garden. The firm is fully integrated and is engaged in property management, construction management, and development management activities in all its markets. Atlantic Residential pursues multi-housing development specifically aligned with the institutional investment market. It utilizes innovative and cost-efficient planning and design to achieve superior investment returns by building Best-in-Class projects in Best-in-Class locations. The firm co-invests with a diverse group of institutional and private partners in primary markets that support immediate and long-term appreciation. Additional info at www.AtlanticResi.com
About Moran & Company: Moran & Company is the nation’s premier multifamily brokerage firm, singularly focused on multifamily assets and mixed-use assets with significant multifamily components. Led by nine regional partners, Moran’s brokerage team leverages its apartment and capital markets expertise with its extensive network of relationships to execute complex sale and capitalization assignments. While investment sales account for the majority of the Company’s transaction volume, Moran also assists developers in sourcing joint venture equity and helps owners with the sale of land entitled for the development of new apartment properties. The Moran & Company Midwest team, led by Pete Evans, is a market leader in Chicago, Minneapolis-St. Paul, and Milwaukee/Madison. For more information, please visit www.moranandco.com