Dwelle, a joint venture between Drew Breneman’s firm RiseInvest and Sam Meyer, closed on the sale of 3433-3443 N. Lakewood Avenue in Chicago on November 20th. The Lakeview asset traded for $4,400,000 or $275,000 per unit.
Dwelle and the seller were both represented by Kyle Stengle, an investment sales broker at Marcus & Millichap. Steve Kundert and Jim Vozza at CBRE financed the transaction with Dwelle using a Freddie Mac SBL.
The property is fully leased and consists of 16 two-bed/one-bath apartment units, shared deck spaces and individual storage spaces in the basement. Each unit features high-end finishes and appliances, wood floors throughout and in-unit washer and dryer. The location offers residents a one-block walk to the Southport Corridor and Brown Line.
Dwelle was sent the deal off-market from an owner and broker whom Breneman/Meyer had purchased properties from in the past. The seller wanted to do a 1031 exchange out of this property and knew Dwelle could perform even in the middle of the COVID environment. Dwelle successfully closed on this purchase at contract price with no financing contingency, with the timing and flexibility the seller wanted for their 1031.
“We strive to increase income similarly to how we have at all of our buildings. We run the leasing, optimize the rent pricing, control all costs and know what the renters want,” said Breneman, managing principal. “We really appreciate the building’s proximity to highly coveted areas of Chicago and love the growth we are seeing the neighborhood. With a short walk to the Southport Corridor, Wrigley Field and the “L,” we can count on a steady demand of high-quality renters.”
“Due to COVID, we have seen many renters exiting high-density areas of the Chicago in search of neighborhoods that still offer access to all of what makes the city great,” said Meyer, managing principal. “This building and surrounding neighborhood are exactly what Dwelle has been searching for to capture the surge in demand for lower-density areas. When COVID is impacting everything, an apartment building leased to individuals who have not had their incomes disrupted by Covid-19 is particularly attractive.”