CHICAGO, Feb. 17, 2016 /PRNewswire/ -- Strategic Properties of North America (SPNA) is pleased to announce the purchase of Grays Pointe Apartments. This 396-unit complex is conveniently located in Lake County between Chicago and Milwaukee, in one of the strongest submarkets in Chicago's metropolitan statistical area.
Grays Pointe Apartments presented SPNA with a true value-added opportunity, which is quite rare in the current multifamily environment. With the bulk purchase of 301 units, SPNA has the necessary majority to enact Section 15 of the condo act, which will enable the subsequent purchases of the remaining 95 units. This process will effectively dissolve the condominium association and result in immediate appreciation by applying current apartment cap rates to the underlying NOI. The aforementioned process, coupled with a planned $3MM renovation, will make Grays Pointe one of the premiere apartment communities in the far northern suburbs of Chicago. In the meantime upgrades will be made to the initial 301 units in order to maximize each condo's functionality and potential.
By implementing this multifaceted and strategic value-added plan, SPNA forecasts investor returns that are extremely difficult to achieve in the current market. Another unique opportunity within the multifamily spectrum closed by SPNA.
About Strategic Properties of North America
SPNA, headquartered in New Jersey, is an industry-leading real estate portfolio and asset management company, actively driven by a commitment to establish optimum investment opportunities and strategies. The firm currently owns and manages over $400 million in assets, with purchase values ranging from $25 million to $100 million. For more information, please visit http://www.spofna.com.
SOURCE Strategic Properties of North America