Multifamily N Illinois

Interra Realty brokers seven Chicago-area apartment sales

5001 S. Drexel Boulevard in Kenwood 5001 S. Drexel Boulevard in Kenwood
2838 N. Albany Avenue in Avondale 2838 N. Albany Avenue in Avondale
7801 S. Ridgeland Avenue in South Shore 7801 S. Ridgeland Avenue in South Shore
2542-2544 N. Harding Avenue in Logan Square 2542-2544 N. Harding Avenue in Logan Square
3311 N. Seminary Avenue in Lakeview 3311 N. Seminary Avenue in Lakeview
5219 S. Calumet Avenue in Washington Park 5219 S. Calumet Avenue in Washington Park
1850 S. 61st Avenue in Cicero, IL 1850 S. 61st Avenue in Cicero, IL

Interra Realty, a Chicago-based commercial real estate investment services firm, brokered seven multifamily sales totaling approximately $11.4 million. The transactions, which closed between December and January and range from $695,000 to $3.2 million, include properties on both the north and south sides of Chicago, as well as west suburban Cicero.

“Across the board, we’re seeing continued interest from multifamily investors, including some who are looking at properties they may not have considered in previous cycles due to their size or location,” said Jon Morgan, co-founder and managing principal of Interra Realty. “This willingness to do smaller, neighborhood-level deals is coming at the right time for owners of these properties, allowing them to cash out rather than undertake the renovations an older building might require.”

5001 S. Drexel Boulevard, Chicago

A 33-unit multifamily building located at 5001 S. Drexel Boulevard in Kenwood sold for $3.2 million, or $96,970 per unit. Interra Realty managing partner Brad Feldman, along with director Adam Saxon, represented the buyer, EquityBuild. The seller, Cedar Street, was represented by Feldman, Saxon and director Brian DiBasilio. The building includes one-, two-, three- and four-bedroom apartments with one or two bathrooms. EquityBuild plans to rehab the property, which was built in 1906.

“This is a rare transaction for an apartment building of this size in the Hyde Park/Kenwood area,” said Feldman. “The strong price shows the demand for value-add properties where investors can make improvements, raise rents and maximize returns.”

3311 N. Seminary Avenue, Chicago

In Chicago’s Lakeview neighborhood, Interra Realty managing partner Joe Smazal represented both the buyer, Blackhawk Investment Group, and a private seller in the sale of 3311 N. Seminary Avenue, a five-unit multifamily building a few blocks northwest of the Belmont CTA station. The property sold for $2 million, representing more than $400,000 per unit. 3311 N. Seminary Avenue includes two-, three- and four-bedroom units with two or three bathrooms.

“On the North Side of Chicago, buyers continue to have an appetite for well-located buildings in stable submarkets,” said Smazal. “More limited development in this stretch of Lakeview has benefitted the owners of existing buildings.”

5219 S. Calumet Avenue, Chicago

Just a short walk from Washington Park, 5219 S. Calumet Avenue is a 26-unit multifamily building that sold for $1.7 million, representing $65,000 per unit. Interra Realty managing partner Ted Stratman and director Jeremy Morton represented both the the private seller and the buyer, an out-of-state investor looking to acquire its first building in Chicago. Apartments include one-, two- and three-bedroom units, each with one bathroom. The building is situated next to a vacant parcel of land owned by the city, which potentially allows for the addition of a parking lot for tenants’ use.

“The continued expansion of the University of Chicago is having a positive effect on surrounding neighborhoods,” said Morton. “The buyer was sold on the potential for rent growth spurred by further development in Hyde Park.”

2838 N. Albany Avenue, Chicago

The eight-unit multifamily building at 2838 N. Albany Avenue in Avondale sold for $1.6 million, representing $200,000 per unit. Feldman and Saxon represented the buyer and seller in the transaction—both local private investors. The buyer plans to eventually renovate the apartments with new kitchens and bathrooms.

“The surge in rents in Logan Square has spilled over into neighboring Avondale, creating high demand for rental properties,” said Feldman. “We gave 20 tours and created a competitive market that ultimately led to the seller realizing a 33 percent gain over his purchase price in 2012, which is indicative of how much values have climbed in recent years.”

1850 S. 61st Avenue, Cicero, IL

This 21-unit community in west suburban Cicero sold for $1.35 million, or $64,286 per unit. Smazal and managing partner Patrick Kennelly represented the buyer, Rosenthal and Russo, and seller, Pappas Real Estate. Built in 1926, the building at 1850 S. 61st Avenue includes studio, one- and two-bedroom units.

“The property benefits from its proximity to public transportation, as well as nearby retail along Cermak Road, including North Riverside Park Mall,” said Kennelly.

2542-2544 N. Harding Avenue, Chicago

Located in Chicago’s Logan Square neighborhood, this six-unit multifamily building at 2542-2544 N. Harding Avenue sold for $900,000, representing $150,000 per unit. Feldman and Saxon represented both the buyer and the seller, who had owned the building for nearly 23 years. The buyer plans to renovate all six units, which feature two- and three-bedroom layouts.

“Investment opportunities like this are becoming harder to find, particularly in neighborhoods like Logan Square,” said Saxon. “After 20 showings with both local and out-of-state parties, we secured a contract within two weeks.”

7801 S. Ridgeland Avenue, Chicago

On Chicago’s South Side, Stratman and Morton represented both the buyer, a local private investor, and seller, Kaya Investments, in the sale of 7801 S. Ridgeland Avenue. The 16-unit multifamily building registered a price of $695,000, representing $43,438 per unit. 7801 S. Ridgeland Avenue includes 15 two-bedroom, one-bathroom units and a single one-bedroom, one-bathroom unit.

“With plans underway for the Obama Presidential Center and Tiger Woods-designed golf course in Jackson Park, the nearby South Shore neighborhood is seeing increasing demand from investors across multiple asset classes, including multifamily,” said Stratman. “We expect this to continue as the projects progress and bring much-needed infrastructure improvements to the South Side.”