Multifamily N Illinois

Interra Realty brokers deconversion sale on Chicago’s North Side

Interra Realty brokers deconversion sale on Chicago’s North Side,ph1

Interra Realty, a Chicago-based commercial real estate investment services firm, has brokered the deconversion sale of 2000 W. Birchwood Avenue, a 16-unit condominium building in Chicago’s Rogers Park neighborhood. Interra managing partner Brad Feldman and director Adam Saxon represented both the buyer and seller in the transaction, which at $2.125 million equated to approximately $133,000 per unit.

“This sale is another example of the deconversion trend playing out in neighborhoods throughout Chicago,” said Feldman. “The buyer plans to add value by duplexing down, or utilizing basement space to expand three of the existing units. All of the condos were owned and rented out by the seller, so there’s already a steady income stream that can be increased further through additional rent growth.”

Built in 1923 and gut-renovated during a condo conversion in 2006, the property currently comprises a mix of one- and two-bedroom units, which were 94 percent leased at the time of sale. The incorporation of the underutilized basement space will convert one one-bedroom unit and three two-bedroom units into larger four-bedroom plans, each with two baths. All units have condo-level finishes, including hardwood flooring, exposed brick, updated baths and modern kitchens with granite countertops and stainless steel appliances. Each apartment also includes in-unit laundry and central heat and air.

“We had 25 showings and received six written offers for the property, demonstrating continued investor interest in North Side neighborhoods like Rogers Park,” said Saxon. “We were able to secure a strong offer for the seller that is on the higher end of the Rogers Park submarket but still provides the buyer with value-add opportunities.”

Rogers Park is Chicago’s northernmost neighborhood, home to a diverse mix of shops, restaurants and cultural and recreational amenities—all a short distance from the lakefront. 2000 W. Birchwood is steps from several bus routes and just a half-mile from the Howard CTA station, which services the Red, Purple and Yellow lines, connecting to downtown as well as the nearby suburbs of Skokie and Evanston.