Arlington Heights, IL
This deal is oversubscribed
Join Wait-List"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 |
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:
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.
"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 |
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:
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.
Chicago, IL
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Available to Accredited Investors:
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."
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