Eastham Capital Fund VI Invests in Chicago Apartment Community for $16.8 Million
Eastham Capital – a sponsor of multifamily private real estate offerings – has again partnered with Bender Companies, this time on the $16.8 million acquisition of Brix on Morse, a 110-unit apartment community in Chicago, Ill.
South Florida-based Eastham Capital invested in the deal through its Eastham Capital Fund VI, LP. Bender Companies, a Chicago-based multifamily owner-operator who has co-invested and partnered with Eastham Capital on multiple projects, will oversee the day-to-day management.
Brix on Morse, in Chicago’s Rogers Park neighborhood, was 97% occupied at the time of acquisition with average rents of just over $1,350 per month. The acquisition includes a renovation budget of $1.2 million for exterior upgrades and interior refreshes.
“Bender has been an incredible affiliate to work with, and we are thrilled to be partnering again to further our reach into the thriving Midwest marketplace,” said Matthew Rosenthal, founder and managing partner of Eastham Capital. “Centrally located between multiple elite universities and 10 miles from downtown Chicago, this property’s prime location, modern amenities, and local neighborhood nightlife make it an investment to be excited about.”
“This asset offered us a great opportunity to assume the property’s existing debt at a favorable 2.67% interest rate with six years remaining on the term,” said Kurt Bender, founder and principal of Bender Companies. “We plan to make light unit upgrades and electrical improvements to enhance the property. This marks our first investment in the city of Chicago, and our eighth acquisition in partnership with Eastham Capital. We are excited to continue our expansion in the greater Chicagoland area.”
Constructed in 1969, Brix on Morse features a mix of studio, one- and two-bedroom apartments, ranging from 663 square feet to 993 square feet. Brix also offers modern amenities, including a fitness center, bike storage, and a fire pit with BBQ stations.
Earlier this summer, Eastham Capital announced the acquisition of a 75% ownership interest invested through Eastham Capital Fund VI, LP, in The Landing at Town Center, a mixed-use community in Vernon Hills, Ill., whom Bender Companies also partnered on and manages.
Located in the 1200 block of Town Center Road, The Landing at Town Center features 85 upscale residential units and 10,609 square feet of ground-floor retail space. Completed in 2010, the property comprises a mix of one-, two-, and three-bedroom apartments. The development also offers modern amenities, including a fitness center, community lounge, stainless steel appliances, in-unit washers and dryers, and 9-foot-high ceilings. The ground-floor retail units include a salon and spa, a dental office, and a pizza restaurant.
“Since 2007, Eastham Capital has raised nearly $1 billion in six multifamily real estate funds from approximately 1,000 high-net-worth individuals, registered investment advisers, and small institutional investors,” Rosenthal noted.
Founded in 2007, Eastham Capital is a private equity real estate firm based in Boca Raton, Fla., that partners with local real estate owners and managers with operational expertise in the management, repositioning, and disposition of distressed real estate assets. To date, the firm has transacted on more than $5 billion in multifamily properties in collaboration with its local operating partners whose regions span the continental United States. Eastham Capital has earned above-market returns in six funds since its inception in 2007.
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