Shodeen Poised to Sell Covington Court Apartments In St. Charles

An affiliate of Atlanta-based private equity firm Radco Investments is poised to buy the 208-unit Covington Court Apartment community in St. Charles from Geneva-based developer Shodeen Inc., which built and has managed the property since 1987.

A press release from Oak Brook-based Walsh Communications states that the transaction price is estimated at $92,500 per unit, which would total $19.24 million. The Covington Court property contains a clubhouse, a swimming pool and is 99 percent leased.

Earlier this year, Radco purchased the 226-unit Brittany Court Apartments in Geneva from Shodeen.

Shodeen Executive Vice President Scott Pfisterer said in the release that the firm wants to capitalize on increased property values in the apartment market, which is seeing rising rents and high occupancies.

The real estate firm CBRE, which represented Shodeen in the earlier sales and is representing Shodeen in this sale, said in the release that  41 apartment buildings were sold for a combined $1.039 billion in 2012 — the second-highest annual total ever recorded. The record, $1.063 billion, was set in 2006 at the height of the real estate boom.

“The apartment sector continues to be an area that has produced attractive overall returns for well-leased, ideally located assets such as Brittany Court and Covington Court and we wanted to take advantage of these positive market conditions,” Pfisterer said.

According to the release, the pending sale will allow Shodeen to focus on developing and building several new luxury apartment properties, as well as expanding the Mill Creek Village Center and the new Mill Creek Vistas project.

In addition, Shodeen plans to continue developing and building more luxury apartments in other nearby communities such as Aurora, Elgin, and DeKalb, where several projects are in process.