6-Unit Multifamily Development Deal in Bronzeville – Feedback?

Question

Hi everyone,

I’m working on a 6-unit ground-up multifamily development in Bronzeville, Chicago and connecting with others active in similar projects.

Project Overview:

- Location: Bronzeville, Chicago

- 6-unit multifamily (new construction)

- Estimated build size: ~5,500–6,000 sq ft

- Lot size: ~13,000 sq ft (oversized lot with strong development potential)

- Land basis: ~$685K

Project Framework:

- Total project cost: ~$1.85M–$2.0M

- Strategy: Build → Stabilize → Refinance

- Estimated rents: ~$10K–$12K/month (based on area comps)

Target Profile:

- 8% preferred return

- 15–18% projected IRR

- 3–5 year hold

The focus is on delivering a well-positioned 6-unit asset in a growing submarket with strong rental demand. The larger lot allows for flexibility in layout, parking, and overall design efficiency.

Open to connecting with:

- Investors active in small multifamily development

- Developers experienced in Chicago infill projects

- Others working on similar-scale ground-up opportunities

Would also appreciate any perspective on comparable projects or market assumptions in the area.

All figures are preliminary and for discussion purposes only.

Happy to connect.

Esra Savran · Answer

Appreciate the detailed insight! Bronzeville’s been on my radar too. I’d be glad to connect and hear more about what you’re seeing on comps and costs.

Esra Savran · Answer

Thank you, Aaron—I appreciate the recommendation. I’ll look into the Chicago multifamily club as I continue building out this project. Always helpful to connect with others active in the space.

Vijay Friedman · Answer

@Esra Savran

This looks like a solid infill multifamily concept, especially with the larger lot size and build-to-stabilize-refi strategy.

From a financing perspective, the key items lenders will usually focus on are borrower experience, total project cost, LTC/LTV, liquidity, detailed budget, permits/entitlements, and the exit DSCR once stabilized. For the refinance exit, the projected $10K–$12K monthly rent will be important to support the valuation and takeout loan.

Happy to connect if you want another set of eyes on the capital stack or possible construction/bridge-to-refi structure.

Amit Patel · Answer

@Esra Savran Sure! sent you a invitation to conect!

Amit Patel · Answer

Hi Esra! I’m Amit, the owner here at a PM in the Chicago suburbs. We’ve been managing rental properties for over 30 years, so I’ve seen plenty of these small multifamily ground-up deals.

Solid project in Bronzeville, it is great submarket with strong rental demand and redevelopment momentum right now.

Your build, stabilize, refinance plan on a 6-unit is exactly the kind of small infill deal that’s been working well lately. The oversized lot gives you nice flexibility on parking and layout, and those $10k–$12k rent projections look realistic for new construction.

If you want to compare notes on local comps, construction costs, or what’s actually happening on the ground in Bronzeville, just shoot me a message! happy to share what we’re seeing with similar projects and connect.

Looking forward to connecting

Aaron Zimmerman · Answer

@Rj D. would be a great a resource! I'm not sure if he's on here but he runs the Chicago multifamily club.

Jonathan Klemm · Answer

What's up @Esra Savran - Love the plan and love Bronzeville even more!  There is a ton of new development in the area so you should be able to learn a lot from the market.

That southside area of Chicago is growing exponentially!  If you do a ground-up and plan on holding it for a significant amount of time, it will be a winner.  The question went up being how you are structuring your capital stack, what you are planning to pay to investors, and how soon you will pay them back.

This is a large project...your team will be your most important asset.  I have some friends who are doing some developments a bit further south, so I'm happy to make some connections.

Esra Savran · Answer

I really appreciate the insight. I’m currently working on structuring a multifamily development in Bronzeville and focusing on assembling the right team and investor base. I’d definitely value any connections you’d be open to sharing.