Interra Realty facilitated the $7.5 million sale of a three-building apartment portfolio comprising 114 units on Chicago’s South Side. The price per unit was $65,789.
Two of the properties are in Chicago’s South Shore neighborhood: 7131 S. Bennett Avenue and 1949 E. 73rd Place. The third, 6600 S. Ingleside Avenue, is located in Chicago’s Woodlawn neighborhood.
The undisclosed seller, a Denver-based investor, and the New York-based buyer both were represented by Interra managing partner Lucas Fryman. Despite challenges posed by the COVID-19 pandemic, Fryman marketed the portfolio as a value-add investment and was able to generate multiple offers.
“Part of the city’s INVEST South/West initiative, South Shore has become increasingly attractive to investors, in part because it offers proximity to the lakefront, Jackson Park – the future home of the Obama Presidential Center—and various cultural institutions, plus it offers easy access to downtown Chicago,” said Fryman. “Woodlawn shares similar locational attributes and also has existing rental stock with strong upside potential.
“As COVID-19 persists, we’re helping buyers identify assets with a mix of market-rate and subsidized units, some of which are backed by government funds—which was the case for all three buildings in the portfolio—as rental income derived from the subsidies is viewed as more stable during the pandemic,” Fryman said.
Built in 1930, 7131 S. Bennett is the largest of the three buildings with a total of 61 apartments, including studio, one-, two- and three-bedroom units. 1949 E. 73rd Place, which was completed in 1925, houses an additional 25 units, while 6600 S. Ingleside, built in 1924, includes 28. Collectively, the buildings were 95 percent occupied at the time of the sale.
In addition to offering proximity to Lake Shore Drive, the Dan Ryan Expressway and Chicago Skyway, the properties are served by the CTA Green Line, several CTA bus routes, Metra’s Electric District line and the South Shore Line, which is being improved as part of a $491 million project.