Multifamily N Illinois

Marcus & Millichap arranges $7.6M in multifamily sales near planned Obama Presidential Center

Marcus & Millichap arranges $7.6M in multifamily sales,ph1
The 51-unit community at 1450 E. 154th Place, Dolton sold for $3.25 million, a record for the suburb.

Marcus & Millichap brokered the sale of six multifamily properties totaling more than $7.6 million near the planned site of the Obama Presidential Center on Chicago’s South Side. Five of the properties are in neighborhoods surrounding the future library site, while the sixth is in the nearby suburb of Dolton, Illinois.

Anthony Hardy and Tom Heitzman, investment specialists in Marcus & Millichap’s Chicago Downtown office, exclusively marketed the properties on behalf of the sellers. Hardy and Heitzman also represented the buyers in all of the transactions, with Ryan Engle joining them to represent the seller of the Dolton property.

“These transactions underscore growing interest in South Side neighborhoods and suburbs that offer a value proposition to renters and investors alike,” said Hardy, who noted all six properties sold within three weeks, with market times as short as eight days. “Sales activity has been fueled by buzz around planned projects like the Obama Presidential Center and Tiger Woods-designed golf course—both of which would be located in nearby Jackson Park.”

The recently sold properties include two in South Shore: 7625-7627 S. Yates Boulevard and 6916 S. Oglesby Avenue. The six-unit Yates property sold for $444,000 while the 16-unit Oglesby building sold for $1.85 million, or $115,000 per unit—a record for the neighborhood so far in 2018.

In Woodlawn, the eight-unit property at 6339 S. Woodlawn Avenue traded for $885,000, or $110,625 per unit—a 2018 record for that neighborhood. An 18-unit community at 7000 S. Indiana Avenue in Park Manor sold for $700,000 while in Jackson Park Highlands, 7040 S. Cregier Avenue, a six-unit property, traded for $476,000. Finally, the 51-unit Dolton property, 1450 E. 154th Place, sold for $3.25 million, which is a high for the suburb on both a per-unit and price-per-square-foot basis.

“Three of the properties were sold to investors out of Southern California and one to an investor in the Seattle area, representing their first purchases in the Midwest,” said Hardy. “This is indicative of the broader migration of capital from the coasts to cities like Chicago as investors chase yield into new markets—and emerging areas within those markets—with room for further cap rate compression.”