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Authentix McHenry snapped up in steaming suburban multifamily market

Continental Properties developed high-end apartments in 2023

Continental Properties Sells Apartments in Hot Suburban Chicago
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A multifamily property in Chicago’s northwest suburbs traded hands as more investors turn their eyes to the Midwest. 

Authentix McHenry, a 288-unit complex developed by Wisconsin based Continental Properties, was listed in September and sold this month. Broker Todd Stofflet, who left Walker & Dunlop for Lument in February, represented Continental. 

Public records of the sale have not been recorded yet, and the buyer and price haven’t been revealed. Representatives of Continental declined to comment.

Continental took out a $250 million loan ($868,000 per unit) to finance the development in 2023. It is one of dozens of its Authentix branded properties throughout the U.S.

The property, at 3415 Blake Road, has an average unit size of 866 square feet. Amenities include a pool, clubhouse, fitness center and a dog park with pet spa. 

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The sale comes about a month after the multifamily giant closed on a $501 million portfolio of 11 apartment buildings across the Midwest. 

As Sun Belt cities face oversupply and declining rents, Chicago is seeing the opposite trend.

Permit activity in the city has decreased significantly and created a limited pipeline and increased demand.

Chicago’s rent growth has been fueled by an influx of college-educated residents, a diverse job market and a severely constricted multifamily development pipeline. Only about 500 units are expected to come online this year, down from the 10-year average of more than 3,500 units, according to Integra Realty Resources.

But property tax policies have scared some investors away from Cook County and toward outer suburbs like McHenry, which benefit from the region’s economy without being bogged down by Chicago’s politics. 

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