Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it brokered the $4.94 million sale of a trio of multifamily buildings in Chicago’s South Shore neighborhood.
The properties, which were purchased by two parties, included:
· 7040 S. Merrill Ave., a 42-unit rental community that sold for $2,315,000, or about $55,100 per unit
· 7337 S. Ridgeland Ave., a 25-unit building that traded for $1,490,000, or $59,600 per unit
· 7801 S. Bennett Ave., a 16-unit property that sold for $1,135,000, or about $70,900 per unit
Interra Managing Partners Ted Stratman and Lucas Fryman, co-founders and Managing Principals David Goss and Jon Morgan, Associate Sam Gutierrez and Director Jeremy Morton represented the private seller. Interra marketed the properties to a national network and ultimately split up the portfolio to maximize proceeds for the seller. The same team also represented the confidential buyer of the Merrill and Ridgeland properties, who paid all cash near list price, while Joe Smazalrepresented the confidential buyer of the Bennett property, who also paid nearly full asking price. Both new owners plan to add value by renovating units.
“The transactions represented strong pricing for value-add deals in South Shore, which continues to attract interest for its prime location near the lakefront, major institutions and cultural attractions, and Jackson Park, the future home of the Obama Presidential Center,” said Stratman. “This is our third portfolio sale in South Shore in the past five months, attesting to the strength of the submarket, one of 10 priority areas included in the city’s INVEST South/West initiative. We expect the profile of South Shore will continue to grow as new projects have a ripple effect on the surrounding neighborhood.”
All three buildings were constructed in the 1920s. 7040 S. Merrill includes 25 studios and 17 one-bedroom units; 7337 S. Ridgeland has three studios, 13 one-bedrooms and nine two-bedrooms; and 7801 S. Bennett has three one-bedrooms and 13 two-bedrooms. The properties were collectively 90% occupied at the time of sale.
Located about 10 miles from downtown Chicago, the buildings are served by multiple CTA bus routes, including the No. J14 Jeffery Jump, which provides express service to downtown, and others providing service to the Red Line. The properties also are close to the Metra Electric District line, Lake Shore Drive, Dan Ryan Expressway and Chicago Skyway.