Just closed an apartment building in Beverly and Elgin
I recently brokered a sale at 1566 Mark Avenue, an 8 unit apartment building in Elgin, IL. The sale price was $430,000 ($53,750 Per unit, 7.66 Cap Rate and a Gross Rent Multiplier of 13.04). The property sold for 93% of list price. In approximately 30 days of marketing we generated 6 offers before selecting a cash buyer that closed in 14 days.
In 2013, Elgin ranked number one in the Chicago metropolitan area in new home starts, while ranking second in new home closings.[17] Elgin's downtown has also been the center of city renovations and new developments. New townhouses, condo towers, loft spaces, and art galleries have opened in the last decade. In October 2003 the Gail Borden Public Library moved into a new $30 million, 139,980 square foot, 460,000 volume-capacity building. In August 2009 the city opened the first ever satellite branch. The 10,000 square foot Rakow Branch, situated on Elgin's West Side, is LEED registered, and was designed to be expandable up to 30,000 square feet. Elgin has opened the 185,000 sq. ft. Centre of Elgin recreation facility across the street from the library. In 2014, Elgin completed the Central Business District Streetscape Improvement Project and the Riverside Drive Promenade. (Wiki)
I also closed a 10 unit building in the Beverly neighborhood of Chicago, IL at 10419 S Hale. My team represented seller in that transaction and the deal closed at $530,000 at 92% of the list price ($54,000 per unit,8.32 Cap Rate , 5.72 GRM). The building featured 4 one bedroom apartments and 6 two bedroom apartments. The building had some deferred maintenance including original windows and a porch violation. The investor purchased the asset with the intention of renovating the units and adding value by increasing rents.
South Shore remains to be
one of the most undervalued neighborhoods in the City of Chicago relative to employment, average house hold income, occupancy levels and rents. I have a handful other apartment buildings in the area that I will be bringing to market soon and a couple more that I'm working off market.