Abacus Capital Group will pay $109 million for suburban apartments

Abacus Capital Group has expanded its multifamily portfolio with a landmark deal in Naperville.

The New York-based investment firm purchased the 417-unit apartment complex at 507 Railway Drive from a venture of Cantor Fitzgerald and BH Equities for $109 million, CoStar reported. The price is $261,400 per unit. The sellers bought it in December 2019 for $96 million ($230,200 each).

The sale set a record for the year, surpassing FPA Multifamily’s purchase of the 642-unit Reserve at Hoffman Estates, which closed in July at more than $102 million ($158,900 per unit).

Newmark real estate agents Chuck Johanns, Liz Gagliardi and Susan Lawson represented the sellers in the Naperville transaction.

Abacus borrowed nearly $71 million from Fannie Mae for the purchase, and a Newmark subsidiary arranged the transaction. The sellers had about $61 million remaining on a commercial mortgage-backed securities loan, which matures in January 2030.

The property, called Railway Plaza, was built in 2000 and consists of 13 buildings on a site of 20 hectares. The complex is nearly 97 percent leased, with average rents of $1,959 per unit.

Chicago multifamily sales volume has reached $2.6 billion this year, up from last year’s $3.9 billion, according to CoStar data.

Abacus has established itself as a formidable player in the multifamily investment landscape. Under the leadership of president and co-founder Ben Friedman, the company has secured approximately 31,000 units and invested $4.8 billion since 2004.

The portfolio spans key markets including Los Angeles and Jacksonville, Florida. It expanded its footprint on the West Coast earlier this year, paying $72.5 million for the Veda Complex, a 236-unit apartment complex at 4735 Sepulveda Boulevard in Sherman Oaks.

–Andrew Terrell

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