Interra Realty closed the $17.975 million sale of a six-building multifamily portfolio in Chicago’s Kenwood neighborhood. Comprising 204 units, the buildings are located at 4001 S. Ellis Avenue, 4433 S. Greenwood Avenue, 4737 S. Ingleside Avenue, 4746 S. Ingleside Avenue, 4500 S. Drexel Boulevard and 811 E. 46th Street, all within about one mile of each other. The price per unit was $88,112.
Interra Realty’s David Goss and Jon Morgan, co-founders and managing principals, and Ted Stratman and Lucas Fryman, managing partners, represented both the seller, Wolcott Group, and an undisclosed buyer. The buyer plans to upgrade units as they turn over and lease additional units that were previously offline, creating additional revenue.
“Experienced sponsors continue to pursue multifamily investments due to the sector’s strong performance relative to other asset classes,” said Goss. “On Chicago’s South Side, which remains attractive to investors, portfolios of this size and scale seldom change hands, especially in a low-velocity sales market like Kenwood. Despite a termination in the early stages of the deal due to COVID-19 and the stay-at-home order, the buyer came back after seeing rent collections hold steady in subsequent months and paid the price originally negotiated prior to COVID.”
The portfolio includes some affordable housing communities whose apartments are reserved for households that meet eligibility requirements.
“Interra’s demonstrated experience selling properties with affordability restrictions helped interested buyers understand the nuances involved with assumption of regulatory agreements and required approval from the Illinois Housing Development Authority,” said Goss. “Interra was able to successfully market the portfolio to a wide range of purchasers, creating a competitive bidding scenario with multiple rounds of negotiations—all without a formal asking price.”
The properties were built between 1908 and 1928 and include a mix of six studios, 23 one-bedroom, 83 two-bedroom, 88 three-bedroom, one four-bedroom and three five-bedroom units. Together, they were 93 percent occupied at the time of sale.
All six properties offer proximity to retail and restaurants as well as public transit, including several bus routes, the CTA’s Green and Red lines, and the Metra Electric District line. They also are close to several parks, beaches and the Lakefront Trail along Lake Michigan.
