Multifamily N Illinois

Interra Realty brokers three multifamily sales in Chicago for over $10 million

Interra Realty brokered the $4.8 million deconversion sale of a 34-unit residential building at 222-240 Asbury Avenue in Evanston, Illinois. Interra Realty brokered the $4.8 million deconversion sale of a 34-unit residential building at 222-240 Asbury Avenue in Evanston, Illinois.
Located in Chicago’s Rogers Park neighborhood, the 19-unit 7735-57 N. Sheridan Road sold for $2.2 million. Located in Chicago’s Rogers Park neighborhood, the 19-unit 7735-57 N. Sheridan Road sold for $2.2 million.
Interra Realty brokered the $3.1 million sale of a 23-unit apartment building at 3149 N. Springfield Avenue in Chicago’s Avondale neighborhood. Interra Realty brokered the $3.1 million sale of a 23-unit apartment building at 3149 N. Springfield Avenue in Chicago’s Avondale neighborhood.

Chicago-based Interra Realty brokered three apartment building sales in the Chicago area totaling $10.1 million. The transactions include properties in the suburb of Evanston and North Side city neighborhoods.

“These sales show the appetite for quality multifamily buildings in Chicago—not just in core areas, but near the furthest edge of the city as well as the suburbs,” said Jon Morgan, co-founder and managing principal of Interra Realty. “Deconversions also remain popular, as they present investors an opportunity for a quick turnaround to capitalize on rent growth.”

In the first transaction, Joe Smazal, Interra managing partner, represented an Illinois-based investor in purchasing 222-240 Asbury Avenue in Evanston, Illinois for $4.82 million. The three-story, 34-unit courtyard multifamily building was deconverted from condos, with Patrick Kennelly, Interra managing partner, and Paul Waterloo, Interra director, representing the seller, 222-240 Asbury Condominium Association.

The sale price equates to an average of nearly $142,000 per unit, an approximately 115 percent premium above recent condominium sales at the property. From 2009 to early 2018, individual sales within the building have averaged $66,000, according to Kennelly.

“We used a proactive marketing campaign targeting multifamily investors to bring broad exposure to this property, which produced 25 property tours and nine offers,” said Kennelly. “Our strategic marketing process, combined with a strong rental market, provided the condominium association a comparatively high sale price through a condo deconversion.”

Built in 1958, the property features 26 one-bedroom and eight two-bedroom units, each with one bath. Many units offer condo-quality finishes such as stainless steel appliances, granite countertops, ceramic tile in kitchens and baths and hardwood flooring. Most units also have a private balcony off the kitchen. The property includes coin laundry, a bike room, storage lockers, a heated parking garage and outdoor parking spaces.

“As demand for apartments has climbed, we’ve orchestrated numerous deconversions throughout Chicago’s downtown and trendy North Side neighborhoods,” said Smazal. “Now, many investors have come to us in search of opportunities in close-in suburbs that provide a high potential for appreciation. Bordering Chicago, Evanston offers a similar urban appeal and convenience that attracts renters.”

In another transaction, a 23-unit brick apartment building in Chicago’s Avondale community at 3149 N. Springfield Avenue sold for $3.1 million, or an average of $134,782 per unit. Smazal represented the buyer and seller, both Illinois-based investors.

“Avondale’s recent recognition nationally as an up-and-coming neighborhood has attracted great investor interest to the area,” said Smazal. “Neighboring Logan Square and Roscoe Village experienced rapid increases in property values, and we anticipate Avondale will mimic that price appreciation. Buyers were also attracted to this building for its rarely available size.”

Built in 1932, the four-story building includes four studios, 12 one-bedroom units and seven two-bedroom units, each with one bath. Many of the apartments feature condo-quality finishes including updated kitchens with stainless steel appliances, granite countertops and hardwood floors.

“The building generated multiple offers and was ultimately sold to a 1031 exchange buyer,” said Smazal. “This stable, incoming-generating asset was the ideal replacement property for the buyer, and our 1031 exchange experience ensured that the buyer met his timeframes.”

The 13,100-square-foot building is set back from the street with a gated entranceway for added privacy. At the time of closing, the building was 96 percent occupied. Residents have shared laundry in the building and access to six parking spaces in the building’s garage for an additional monthly fee. Located just a mile from the Belmont Blue Line station, the property is also within walking distance of shops and restaurants along Milwaukee and Belmont avenues, as well as several bus routes.

Finally, a four-story, 19-unit multifamily building located at 7735-57 N. Sheridan Road in Chicago’s Rogers Park neighborhood sold for $2.18 million. The price equates to an average of $114,736 per unit. Smazal represented the buyer and seller, both Illinois-based investors.

Built in 1917, this 10,900-square-foot property features 16 studio and three one-bedroom apartments—some with new appliances, cabinets and granite countertops. The new owner plans to upgrade the remainder of the units in the building, which is 95 percent occupied.

“Tenants at 7735-57 N. Sheridan can walk less than 500 feet to reach the Lake Michigan shoreline, and amenities in the adjoining suburb of Evanston are also nearby,” said Smazal. “Thanks to high demand for rentals and the property’s prominent location, we were able to procure a buyer at over 96 percent of the list price within two weeks of being on the market.”

Juneway Beach and Rogers Beach Park are both lakefront beaches a short distance from the property, offering a range of recreational options. In addition, the Howard CTA station is less than a mile away, offering convenient access to downtown Chicago, Evanston and nearby Skokie.