W
aterton, a real estate investment company based in Chicago, has recently expanded its suburban portfolio with the addition of a significant apartment property. The acquisition was made for $77.5 million, which translates to $250,000 per unit. The purchase was made by CEO David Schwartz's company, which now owns and manages over 7,000 apartment units in the Chicago area.

    The newly acquired property, known as Avant at the Arboretum, is located at 450 Warrenville Road in Lisle. The seller of the four-story building was Oak Brook-based JVM, who had purchased it in 2017 for $68.6 million or $221,000 per unit. Berkadia's Pete Evans and Richard Evans represented JVM in the sale.

    Waterton plans to make significant improvements to the complex, including renovations to unit interiors and upgrades to common areas and amenities. These enhancements align with the company's strategy of modernizing its properties to attract and retain tenants.

    The acquisition of Avant at the Arboretum highlights the increasing demand for rental housing in Chicago's suburbs. Recent property sales in nearby Glendale Heights and Aurora have shown similar markups, indicating that the suburbs remain a profitable area for multifamily investors.

    Lisle's location along the Interstate 88 corridor makes it an attractive location for renters due to its proximity to major employment centers. The median rent in DuPage County rose by 4.9 percent year over year in the first quarter of 2024, reaching $2.09 per square foot, according to Integra Realty Resources.

    In summary, Waterton's purchase of Avant at the Arboretum is part of the company's strategy to modernize its properties and attract tenants. The acquisition also reflects the growing demand for rental housing in Chicago's suburbs, as evidenced by recent property sales in nearby areas.