ST. CHARLES – Geneva-based ShoDeen expects to sell its apartment complex Covington Court in St. Charles to an Atlanta company for $19.2 million, officials said.
“We intend to buy it,” said Norman Radow, owner of Radco Companies, a real estate development and investment company. “We are in escrow. The documents are all signed; all the cash is in and ready to go. It’s just that HUD [Department of Housing and Urban Development] has ... to put a checkmark to allow us to assume the loan.”
Radow said ShoDeen took out a $12 million HUD loan a year ago on the Covington apartments, 1690 Covington Court, St. Charles, and that loan has to be assumed before the property can change hands.
“It’s a day or two or three,” Radow said, before the sale will be final.
Radco bought another ShoDeen apartment complex, Brittany Court, 390 Brittany Court, Geneva, in February for about $27 million, Radco’s owner said.
Radow said the company renamed Brittany to Ashford at Geneva and will rename Covington to Ashford at St. Charles.
Covington Court has 208 apartments, and Brittany has 225 units. Shodeen built both apartment complexes in 1987 and managed both, company officials said.
Radow said the company owns about 4,000 apartments in Illinois, Georgia and Indiana.
“We think we’re buying it at a value, and we see the tremendous upside in both communities,” Radow said of the local purchases. “They have not been upgraded in many years. We are going in there and doing improvements to improve quality of life in both properties. And we think that the market is going to embrace those changes.”
Radow estimated the company would invest about $2 million in each apartment complex.
So far at the Ashford at Geneva, Radow said they renovated the clubhouse and added a fitness center, in addition to doing upgrades in individual apartments.
Radow said these two purchases are the company’s first in the current cycle. The company developed two condominium towers in Chicago in 2003 and 2004, the 37-story Riverbend on the Chicago River and the 16-story Prairie house across from Soldier Field.
In a news release from ShoDeen, the local development company states the sale will allow it to focus on new luxury apartment developments in Geneva, Aurora, Elgin and DeKalb.
ShoDeen officials sent a premature announcement Friday that the Covington sale was completed, later withdrawing the statement because the sale is pending. ShoDeen officials would not comment on the pending sale until it is completed, a spokesman said.