Multifamily N Illinois

South Shore multifamily development sells for $3.25 million

South Shore multifamily development sells for $3.25 million,ph1

Chicago-based commercial real estate investment services firm Interra Realty brokered the sale of a 61-unit multifamily development at 7131-51 S. Bennett Avenue in Chicago’s South Shore neighborhood. The sale price was $3.25 million.

“This transaction demonstrates continued interest in the South Shore submarket, which has drawn attention from investors due to its proximity to lakefront recreation, cultural institutions and easy access to downtown Chicago,” said Interra Realty director Lucas Fryman, who represented both the buyer and seller. “Because of its size and opportunity for improvement, this building offered an add-value deal of scale that so many experienced investors are seeking.”

At nearly 50,000 square feet, the vintage building includes a mix of studio-, one-, two- and three-bedroom apartments, 80 percent of which were leased at the time of sale. It is the second-largest building, by unit count, sold in the South Shore neighborhood this year. The buyer plans to make capital improvements to the units to bring the finishes in line with the market and utilize an aggressive leasing strategy to grow the property’s revenue.

“With the stabilization of the market since the subprime mortgage crisis, investment opportunities like this are becoming increasingly scarce,” said Fryman. “Because of our block-by-block familiarity with the neighborhood and relationships with investors, we were able to secure a buyer off-market, satisfying the seller’s desire for a discrete process.”

Located just south of Chicago’s Hyde Park neighborhood and bordering Lake Michigan, the South Shore neighborhood offers easy access to the Museum of Science and Industry, the South Shore Cultural Center, the planned Obama Presidential Center in Jackson Park, a proposed 18-hole golf course designed by Tiger Woods and Rainbow Beach Park. The property is less than two blocks from the Bryn Mawr Metra Electric District line stop and within walking distance of several CTA bus routes, providing easy access to downtown.