In one of the largest multi-family real estate transactions in Chicago history, New York-based Emerald Empire purchased a local portfolio of Pangea properties in a sale of over $600 million.
Pangea, one of Chicago’s largest landlords, owns Chicago properties that include nearly 7,500 units across more than 400 buildings that co-founder and longtime local businessman Al Goldstein worked to put together after the Great Recession. I am unloading. He primarily focused on acquiring distressed properties on the south and west sides of the city, some of which he purchased for less than $20,000 per unit. Since then, the company has sold few buildings.
A person familiar with the transaction said the seller’s cash-out move was driven by a significantly higher price per unit, above $75,000. Neither Emerald nor Pangea confirmed the exact price tag. Thousands more Indianapolis and Baltimore apartments owned by Pangea were not involved in the deal.
“Emerald has been impressed with Pangea’s business and long-term strategy for some time,” Emerald principal Moshe Wexler said in a statement.
Pangea employs about 500 people, who will continue to manage Emerald’s property, said its CEO, Peter Martay.
For Emerald, the acquisition represents a significant expansion of its Chicago-area holdings, which already own multiple multi-family homes in both the city and suburbs, including a four-story, 37-unit Onyx on the North Shore. To do.
Portions of Emerald’s newly purchased portfolio structure are similar to existing Chicago assets, but now extend south and west of the city. The portfolio Pangea is transitioning into is primarily mid-market to dozens of previously run-down buildings. However, the company invested in refurbishing the property while in possession.
Details of the loan have not yet been made public or disclosed by Empire, but the sale is being funded by the Arbor Realty Trust team, which includes Hamir Ramolia and Maurice Kaufman.
The deal has moved forward despite Pangea being sued by tenants in complaints filed in Cook County Court over the summer. The lawsuit is still pending and no major decisions have yet been made on next steps, but Pangea has ignored requests for repairs, rat infestations and insects and an inability to provide heating that works in winter.
Pangea said at the time that the claim was baseless. Both parties said the lawsuit did not affect the real estate transaction.