Essex Realty Group, has been exclusively engaged to market for sale The Lake and McHenry Collection, a 135-unit apartment portfolio across four well-maintained properties in Grayslake, McHenry, and Island Lake. The Portfolio offers an investor a turn-key operation with immediate scale in desirable suburban markets. Furthermore, the Lake and McHenry Collection presents strong in-place cash flow and a proven path to achieve a 15% increase in portfolio gross revenue as-is.


Current ownership has recently made significant capital improvements including new parking lots, roofs, boilers, hot water heaters, and decking. Additionally, several units have been modernized to improve rents.


Glen Street Apartments, built in 1984, consists of 40 units and is located in a quiet residential pocket just south of Grays Lake. The unit mix includes one-, two-, and three-bedroom layouts, plus a leasing office. 36 of the 40 units are 2-bedroom units (90%) and currently average $1,359 plus $15/mo. in water reimbursements. As the enclosed rental survey indicates, the market for similar units is $1,600/mo., or 18% higher than the current average.


Glen Street is located within walking distance of the Metra station, downtown Grayslake, and local schools, providing tenants with easy access to transit access and nearby amenities. Additionally, Jones Island Park and the College of Lake County are just a short drive away.


Two of the properties, James Street Apartments and Concord Manor Apartments, are adjacent and situated in the heart of McHenry within walking distance to the Green St Commercial Corridor, McHenry High School, Edgebrook Elementary and the McHenry Metra Station. James Street’s unit mix features four (4) studios, 27 1-bedroom and eight (8), 2-bedroom units and Concord is all 2-bedroom units.


James Street, built in 1972 and 1976, features 39 units and Concord, constructed in 1962, includes 24 units. The average rent at James Street is $1,236/mo. plus $15/mo. water reimbursement and per the enclosed rental survey there is approximately 10% of rental upside as-is. Similarly, the average rent for a Concord 2-bedroom is $1,259/mo. plus $15/mo. in water reimbursements and the market is approximately $1,500, or roughly 16% higher.


Lastly, Cotton Creek Apartments was built in 1986 and consists of 32 units in Island Lake. Situated in a quiet, wooded area, Cotton Creek is one of the few apartment complexes in Island Lake and tenants benefit from easy access to the Cotton Creek Marsh Nature Preserve, and local trails that offer abundant green space and outdoor recreation.


Featuring nine, one-bedroom and 23 two-bedroom units, the current average is $1,288 plus $15/mo. in water reimbursements. As demonstrated by recent leases and the enclosed rental survey, current rents are approximately 16% below market as-is. Additionally, investors can benefit from an assumable Fannie Mae loan with favorable terms. Originated December 2019 with a 10-year term, the current loan balance is approximately $1,605,000 and features a 3.88% rate. The rate is fixed until December 2029, providing considerable savings compared to current rates.

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• Rarely Available 135-Unit Northwest Suburban Portfolio
• 6.3% In-Place Cap Rate, Forecasted 7.5% with Proven Rental Increases
• Large Unit Mix – 67% Two Bedroom Units
• 78% Tenant Retention Rate the Last 12 Months (7% Avg Renewal Increase)
• Several Recent CapEx - New Roofs, Windows, Boilers, and Parking Lot Upgrades
• Close Proximity to Metra, Highways, Award-Winning Schools, Parks and Several Shopping Districts