Property Details
Stabilized Occupancy  Stabilized Income  Stabilized Cashflow  Below Market Rent  NOI Growth 
Asset Profile
Multiple

Ashton Condominiums

Arlington Heights, IL

Multi-Family Property

This deal is oversubscribed

Join Wait-List
Randolph Street Realty Capital, LLC Chicago, IL
Randolph Street Realty Capital, LLC
  • IRR 17.3-18%
  • Equity Multiple 1.85-2.06x
  • Hold Period 4-5Y
  • Minimum Investment $35K
  • Year 1 Cash on Cash 7.3%
  • Stabilized Cash on Cash 8.3% in Y2
  • First Distribution Jun 2021
  • Distribution Frequency Quarterly
  • Asset Profile Multiple
  • Loan-to-Value 70%
  • Current Occupancy 96%

About this Property

"Acquisition of 185 condominium units and controlling interest in 240-unit complex in suburban Chicago which permits Sponsor to either acquire or cause sale of the remaining 55 units, de-convert and add-value through multiple strategies."

-Jonathan Saliterman, Randolph Street Realty Capital, LLC

 

Address 2302-2416 S Goebbert Rd
Square Footage 150,300 sq. ft.
# of Units 185
Year Built 1989
Year Renovated 2015-19
Current Occupancy 96%
Market Occupancy 95%
Current Average Rents $1.49 psf
Average Market Rents $1.58 psf
Purchase Price $25,428,750
Price/Sq. Ft. $170 psf

Top Questions

All answers are provided by the sponsor, Randolph Street Realty Capital, LLC, or its representatives.

 

Why are you buying this property?

Jack von Albade, Randolph Street Realty Capital, LLC: "The Project was constructed in 1989 in suburban Arlington Heights, Illinois. RSRC is acquiring the 185 units in a bulk purchase from the current unit owners and will also acquire rights to all the HOA Board Seats and appurtenant management rights. The 185 units being acquired by RSRC exceed the 75% statutory threshold which will permit RSRC to purchase or cause sale of the remaining 55 condominium units by right, without need of any consent. Acquiring the remaining units, de-converting the condominium and operating the property as an integrated rental apartment community will significantly increase the value of the asset."

 

What are the most important aspects of this investment opportunity for the investors?

Jack von Albade, Randolph Street Realty Capital, LLC:

  • "Acquire 185 condominium units from current owners"
  • "Build to stabilized cap rate of 6.6% cap versus low 5% cap rates for 80s vintage value-add projects in current environment"
  • "Projected 1.85x LP cash multiple/18% LP IRR"
  • "Finance with loan from TCF at a low 3% interest rate; will provide for a facility to buy back units"
  • "Opportunities to improve rental revenue and cut expenses"
  • "Improve management and further renovate units (quartz, stainless appliances) and clubhouse and outdoor amenities; HOA funds to be used for common area rehab"
  • "Install in-unit washers/dryers and increase rents."
  • "De-convert condo regime either through buy-backs or forced sale through the IL Condo Act 75% rule"
  • "De-conversion will add value by expanding buyer pool to conventional multi-family operators."
  •  

    What is your investment strategy/business plan?

    Jack von Albade, Randolph Street Realty Capital, LLC: "RSRC will acquire the 185 rental units as a bulk purchase, direct the HOA to renovate the clubhouse and improve the fitness room as well as invest up to $1,050,000 in interior renovations to the units including adding in-unit washers and dryers. Ag in-unit washer dryers and other upgrade packages will allow Sponsor to increase revenue throughout the hold and support strong cash annual yield throughout the investment. The average projected annual yield for a four-year hold is 7.6%. RSRC will also move to acquire as many of the remaining 55 units as possible at pricing which is accretive to projected cash yield or alternatively force de-conversion of the condominium at sale. By selling the property as a Value-Add multifamily property the pool of potential buyers at exit with be greatly enhanced."

     

    How has COVID-19 impacted your business plan?

    Jack von Albade, Randolph Street Realty Capital, LLC: "Despite in-place rents being 6.1% below market levels, RSRC has underwritten a more modest 2% rent growth through years 1 & 2 of the investment to account for the impact of COVID-19 limiting rent growth. We are focused on adding washers and dryers as value-add strategy during years 1-2 rather than cosmetic upgrades as we believe that will be a stronger value-add strategy during the COVID (and hopefully post-COVID) environment."

     

    What are the risks and how are you mitigating those risks?

    Jack von Albade, Randolph Street Realty Capital, LLC: "The extension of eviction moratoria related to COVID-19 may impact revenues. RSRC will stay up to speed on programs to help residents pay rent. Pushing a value-add strategy may be impacted if a prolonged economic recession occurs resulting from COIVD, but risk is mitigated by good in place income for the property."

    NOTE: All answers provided by the sponsor, Randolph Street Realty Capital, LLC, or its representatives.

About this Property

"Acquisition of 185 condominium units and controlling interest in 240-unit complex in suburban Chicago which permits Sponsor to either acquire or cause sale of the remaining 55 units, de-convert and add-value through multiple strategies."

-Jonathan Saliterman, Randolph Street Realty Capital, LLC

 

Address 2302-2416 S Goebbert Rd
Square Footage 150,300 sq. ft.
# of Units 185
Year Built 1989
Year Renovated 2015-19
Current Occupancy 96%
Market Occupancy 95%
Current Average Rents $1.49 psf
Average Market Rents $1.58 psf
Purchase Price $25,428,750
Price/Sq. Ft. $170 psf

Top Questions

All answers are provided by the sponsor, Randolph Street Realty Capital, LLC, or its representatives.

 

Why are you buying this property?

Jack von Albade, Randolph Street Realty Capital, LLC: "The Project was constructed in 1989 in suburban Arlington Heights, Illinois. RSRC is acquiring the 185 units in a bulk purchase from the current unit owners and will also acquire rights to all the HOA Board Seats and appurtenant management rights. The 185 units being acquired by RSRC exceed the 75% statutory threshold which will permit RSRC to purchase or cause sale of the remaining 55 condominium units by right, without need of any consent. Acquiring the remaining units, de-converting the condominium and operating the property as an integrated rental apartment community will significantly increase the value of the asset."

 

What are the most important aspects of this investment opportunity for the investors?

Jack von Albade, Randolph Street Realty Capital, LLC:

  • "Acquire 185 condominium units from current owners"
  • "Build to stabilized cap rate of 6.6% cap versus low 5% cap rates for 80s vintage value-add projects in current environment"
  • "Projected 1.85x LP cash multiple/18% LP IRR"
  • "Finance with loan from TCF at a low 3% interest rate; will provide for a facility to buy back units"
  • "Opportunities to improve rental revenue and cut expenses"
  • "Improve management and further renovate units (quartz, stainless appliances) and clubhouse and outdoor amenities; HOA funds to be used for common area rehab"
  • "Install in-unit washers/dryers and increase rents."
  • "De-convert condo regime either through buy-backs or forced sale through the IL Condo Act 75% rule"
  • "De-conversion will add value by expanding buyer pool to conventional multi-family operators."
  •  

    What is your investment strategy/business plan?

    Jack von Albade, Randolph Street Realty Capital, LLC: "RSRC will acquire the 185 rental units as a bulk purchase, direct the HOA to renovate the clubhouse and improve the fitness room as well as invest up to $1,050,000 in interior renovations to the units including adding in-unit washers and dryers. Ag in-unit washer dryers and other upgrade packages will allow Sponsor to increase revenue throughout the hold and support strong cash annual yield throughout the investment. The average projected annual yield for a four-year hold is 7.6%. RSRC will also move to acquire as many of the remaining 55 units as possible at pricing which is accretive to projected cash yield or alternatively force de-conversion of the condominium at sale. By selling the property as a Value-Add multifamily property the pool of potential buyers at exit with be greatly enhanced."

     

    How has COVID-19 impacted your business plan?

    Jack von Albade, Randolph Street Realty Capital, LLC: "Despite in-place rents being 6.1% below market levels, RSRC has underwritten a more modest 2% rent growth through years 1 & 2 of the investment to account for the impact of COVID-19 limiting rent growth. We are focused on adding washers and dryers as value-add strategy during years 1-2 rather than cosmetic upgrades as we believe that will be a stronger value-add strategy during the COVID (and hopefully post-COVID) environment."

     

    What are the risks and how are you mitigating those risks?

    Jack von Albade, Randolph Street Realty Capital, LLC: "The extension of eviction moratoria related to COVID-19 may impact revenues. RSRC will stay up to speed on programs to help residents pay rent. Pushing a value-add strategy may be impacted if a prolonged economic recession occurs resulting from COIVD, but risk is mitigated by good in place income for the property."

    NOTE: All answers provided by the sponsor, Randolph Street Realty Capital, LLC, or its representatives.

Offered By

Login or Register to See More Details

Available to Registered Users

  • Get to know the sponsor behind the offering with key information
  • See an overview of their experience and success
  • Understand their investment strategies
  • Easy access to contact the sponsor directly to learn more
Assets Under
Management

Currently
$251MM 10+ assets
Exited
$192MM 10+ assets
Portfolio LTV
58%  
Historical
Realized Returns

Total IRR
N/R  
Equity Multiple
2.37x  
Annual Cash
7%  
Years Of
Experience

As Principals
20+ years  
In Business
12 years  
Size
4 Staff  
* All information is reported by Randolph Street Realty Capital, LLC as of 11/23/2020.
Assets Under
Management

Currently
$251MM 10+ assets
Exited
$192MM 10+ assets
Portfolio LTV
58%  
Historical
Returns

Total IRR
N/R  
Equity Multiple
2.37x  
Annual Cash
7%  
Years Of
Experience

As Principals
20+ years  
In Business
12 years  
Size
4 Staff  
* All information is reported by Randolph Street Realty Capital, LLC as of 11/23/2020.

Financials

Login or Register to View Financials

Available to Accredited Investors:

  • Get an overview of important financial details to make a smarter investment
  • Analyze the financial pro forma to see how projected returns are distributed over time
  • Review source and uses and other important details
Offering Financial

Sponsor Diligence Report

Login or Register to View Report

Available to Accredited Investors:

  • View principal experience
  • Review background check results
  • Track record verification
Diligence Preview

Location Details

Arlington Heights, IL

Jack von Albade, Randolph Street Realty Capital, LLC: "The property is near the intersection of Algonquin Road and Arlington Heights Road in Arlington Heights, IL, approximately 23 miles northwest of downtown Chicago. The location affords the property with immediate access to I-90 and only an eight-minute drive to both the Arlington Heights and Mt. Prospect Metra stations, making the property a great location for commuters to downtown Chicago by car or train. The property is also only a short 10-minute drive from O’Hare International Airport, the second busiest airport in the US as well as a 10-minute drive to Woodfield Mall and adjoining Schaumberg Office Submarket which houses 37.2M sf of office space."

Documents

Login or Register to View Documents

Available to Accredited Investors:

  • View, download, and print the offering PPM (Private Placement Memorandum)
  • View, download, and print the detailed financial projections
  • Access all of the important documents for this offering in one place
Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

Send Randolph Street Realty Capital, LLC and/or RealCrowd a message. If you have a question about this offering ask Randolph Street Realty Capital, LLC. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

Please resolve the captcha and submit.

We'll get back to you soon!

In the meantime, you can create an account to view detailed information about Ashton Condominiums.

In the meantime, please review the offering documents and financials.

Sign Up for our free 6 week course on the fundamentals of commercial real estate investing.