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Monday, December 16, 2019

Lombard Clover Creek sale still below construction price

Real Estate

By LocalLabs News Service | Jun 7, 2017

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The Clover Creek Apartments in Lombard sold last week-- but for less than they cost to build in 1984. | Clover Creek

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.

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Organizations in this Story

Village of LombardClover Creek ApartmentsJRK Property Holdings

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