Interra Realty facilitated the $4.55 million sale of 5001 S. Drexel Boulevard, a 33-unit renovated apartment building in Chicago’s Kenwood neighborhood. The price per unit was $137,878, one of the highest in the submarket in recent years, per CoStar data.
Managing partner Ted Stratman and director Jeremy Morton represented the seller, a local real estate investment group that works often with Stratman and engaged him to sell the property off-market. Stratman and Morton also represented the buyer, Los Angeles-based family office ShainRealty, led by Jonathan and Elliot Shainberg.
“We continue to see the demand for sizable apartment buildings on Chicago’s South Side, especially in the Kenwood and Hyde Park neighborhoods,” said Stratman. “The seller has owned and renovated hundreds of South Side buildings over the years and is an experienced renovator, as buyers saw when they toured the property. The buyer purchased the building due to the ideal unit mix and location, as well as the nearly 100 percent rent collection since the pandemic began and below market rents allowing for ample upside.”
Most recently renovated in 2019, the asset includes a mix of one-, two-, three- and four-bedroom apartments. The seller purchased the building as a distressed property and significantly updated the units with new kitchens, bathrooms and windows and added a laundry room. The building was 97 percent occupied at the time of sale.
5001 S. Drexel is located near stores and restaurants in both Kenwood and Hyde Park, close to bus routes that connect to the CTA Green and Red lines, and a short drive from Lake Shore Drive. Attesting to the strength of the Kenwood submarket, since Aug. 1, Stratman and Interra have brokered the sale of eight apartment buildings there collectively totaling more than $30 million.