It’s unclear what an investor would pay for Woodview today, but the property will almost certainly fetch more than the $81.8 million LaSalle bought it for in 2016. Suburban apartment values have since risen supported by high occupancy rates and rising rents. Yet the recent increase in mortgage rates has begun to limit what investors are willing to pay for multi-family properties.
LaSalle, a Chicago-based unit of Jones Lang LaSalle, declined to comment, and a Berkadia executive did not respond to a request for comment.
Built in 2015, Woodview has the advantage of being close to the offices of some major companies, including Baxter International, Horizon Pharmaceuticals, Walgreens Boots Alliance and Discover Financial Services. Demand for apartments is largely driven by nearby jobs, and Woodview, at 15 Parkway North, has plenty within a short drive.
Incomes for many suburban apartments have also increased in recent years amid rising rents. Of the 155 new leases at Woodview this year, the average apartment was rented 14.4% more than under the expired lease, according to a Berkadia Market brochure.
Recent suburban apartment transactions suggest Woodview could sell for a significant gain. In Northbrook, for example, Tapestry Glenview recently sold for $97 million, up 19% from $81.7 million traded in 2017.