Eastham Capital, Artisan Capital Acquire 200-Unit Multifamily Property in Palatine, IL for $31.5M

South Florida-based Eastham Capital has announced the acquisition of Arrowhead Apartments, a 200-unit garden-style multifamily community in Palatine, Illinois, a suburb of Chicago, for $31.5 million. The acquisition was completed through Eastham Capital Fund VI, LP in a joint venture with operating partner Artisan Capital.

The deal marks the final acquisition for Eastham Capital Fund VI, LP and represents the fifth co-investment between Eastham and Artisan. According to the firm, all five co-investments are currently delivering above-proforma returns.

Deal Details

Arrowhead Apartments is currently 85% occupied, with average rents of $1,776 per month. At a purchase price of $31.5 million across 200 units, the transaction implies a price per unit of approximately $157,500. Cap rate and loan details were not disclosed.

The property presents a value-add opportunity, with Eastham Capital planning approximately $1.9 million in renovations covering amenity updates and interior and exterior building improvements. The firm noted that prior ownership had already completed significant upgrades at the property.

"We are excited to once again partner with Artisan and expand our footprint in Chicago to Palatine, renowned for its excellent schools, thriving economy and community," said Matthew Rosenthal, founder and managing partner of Eastham Capital.

Eastham and Artisan's Partnership

Eastham Capital describes itself as a private equity real estate firm focused on the transformation of undervalued multifamily real estate to deliver risk-adjusted returns to investors. The firm is headquartered in Boca Raton, Florida. Artisan Capital serves as the operating partner in the joint venture. The Palatine acquisition expands the partnership's presence within the Chicago suburban market.

Fund VI Reaches Final Acquisition

The Arrowhead Apartments deal closes out the investment period for Eastham Capital Fund VI, LP. No additional details regarding fund size or total assets under management were disclosed.

Eastham Capital is headquartered at 6001 Broken Sound Parkway NW, Suite 510, Boca Raton, Florida.