I recently brokered a sale at 7201 S Constance a 39 unit courtyard style apartment building in the South Sore neighborhood of Chicago. The sale price was 1,000,000 ($25,641 Per unit, 13.11 Cap Rate and a GRM of 3.45) This was a value add opportunity that we generated 9 offers on before selecting a cash buyer that closed in 14 days.
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. In the last year, I have closed on 7 South Shore apartment buildings. I have a handful other apartment buildings in the area that I will be bringing to market soon and a a couple more that I'm working off market.
I also closed a 6 flat in the East Humboldt Park neighborhood of Chicago, IL at 1333 N Mozart. My team represented the buyer and seller in that transaction and the deal closed at $730,000 97.98% of the list price ($121,000 per unit,7.63 Cap, 9.56 GRM). The building featured 3 three bedroom apartments and 3 two bedroom apartments. Two of the apartments were remodeled to condo quality and achieving higher rents. The investor purchased the asset with the intention of renovating the remaining units and adding value by increasing rents.
Thanks Brian what kind of deals you looking at in Glen Mills?
Looks like a good deal congrats.
@Tony Hardy That sounds like one heck of a deal, a 39 unit for $1,000,000. Just out of curiosity, can you provide a little more description of the property. You said it was a value add, I'm assuming high vacancy? What was the unit mix? When was it built?
Also I don't know much about the area, is it a C class area?
You can contact me about some off market opportunities in Chicago.
Tony congrats. You are correct that South Shore is under valued. I was looking at a property on 73rd Place and the owner had several offers mine included and got close to asking.
Congrats Tony,job well done!!
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