Chicago-based Interra Realty has brokered three multifamily transactions totaling $5.5 million in Chicago’s Edgewater and Rogers Park neighborhoods. The properties, located at 5547 N. Lakewood Avenue, 1619 W. Lunt Avenue and 7423 N. Rogers Avenue, were fully occupied at closing and marketed by Interra as value-add investments.
“Multifamily investors in search of higher yields continue to seek out opportunities on Chicago’s North Side,” said Craig Martin, managing partner at Interra. “While the influx of capital to neighborhoods like Edgewater and Rogers Park is well underway, there are still plenty of older buildings in need of renovation, making it possible for buyers to substantially increase net operating income.”
Located in Andersonville, part of the broader Edgewater community, 5547 N. Lakewood is a four-story, 16-unit walkup that sold for $2.6 million, or $162,500 per unit. Built in 1937, the building has three studios and 13 one-bedroom units. The seller was the estate of Victoria Altman, represented by Interra’s Martin, while the buyer was a venture led by Joe Hayes and Mike Cavanaugh, also represented by Martin.
“This asset presented an incredible value-add opportunity at a lower price per unit,” Martin said. “Significant updates and repairs will be made to the building and units, after which owners can raise rents to market rates. In addition, the building’s one-bedroom apartments are very large, enabling the new owner to convert them to two-bedroom units if desired and realize an even better return on investment.”
Built in 1931, the 10-unit 1619 W. Lunt sold for $1.3 million, or $130,000 per unit. It includes one studio, six one-bedroom and three three-bedroom apartments. Martin and Brian DiBasilio, a director at Interra, represented the private seller and buyer.
“This was a very well-maintained property, yet there was upside potential through unit renovations,” said Martin. “In addition, the new owners will be converting the large one-bedroom apartments into two-bedroom units.”
The four-story, 16-unit 7423 N. Rogers was built in 1926 and traded for $1.46 million, or $91,438 per unit. It includes four one-bedroom and 12 two-bedroom apartments, which will be upgraded by the new owners along with common areas and mechanicals. Martin represented the private buyer as well as sellers Gary and Bella Goland.
“This building was another example of the rent growth potential available with these properties,” said Martin. “Apartment investors are now realizing that many areas within the neighborhood are solid places to invest, modernize and hold for the long term.”