Lombard Clover Creek sale still below construction price
A Los Angeles-based investment fund bought Lombard's 504-unit Clover Creek Apartments complex from a New York-based investment fund for $67.4 million.
That represented a quick profit for the seller, real estate giant Blackstone Group, which bought Clover Creek in March 2015 for $54.1 million. But it is still less than the apartments cost to build in the 1980s.
AHW Development Enterprises of Westmont and the National Housing Partnership of Washington, D.C. originally spent $37 million-- $87 million in 2017 dollars-- on the construction of Clover Creek in 1984.
After its developers couldn't get conventional financing for less than 14 percent interest-- the going rate in 1984-- so the Village of Lombard stepped in, borrowing $32.5 million at 8.5 percent to finance the deal.
AHW's owner was Arthur H. Wunderlich of Darien.
It opened in Oct. 1985 with rents ranging from $500 to $750, or $1,136 to $1704, inflation adjusted.
Rents today range from $1,091 to $1,624, according to Clover Creek's public listings.
The development has 128 one-bedroom units, 312 two-bedroom units, and 65 three-bedroom units.
Its new owner, JRK Property Holdings, also owns The Residences of Arlington Heights.