Just closed apartment building in South Shore & Humboldt Park

[Tony Hardy]

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.

[Tony Hardy]

It was an amazing deal for the buyer and seller. Built in 1924 consisting of 10 studios, 4 two bedrooms and the balance 1 bedrooms. Vacancy was about 20% some deferred maintenance. I sold a similar building a few blocks away in 2012 for $1MM that was resold this year for $1.6MM I wouldn't be surprised that once stabilized there is significant value added.