Interra Realty facilitated the $9.58 million sale of 943 N. Crosby Street, a 27-unit rental community in Chicago’s River North neighborhood. The price per unit, including a street-level commercial space, was $342,419.
Interra Realty senior managing partner Joe Smazal represented the buyer, Recon Properties LLC, owned by Michael Arrington, who was seeking a replacement property as part of a 1031 exchange. Smazal identified this off-market asset based on his existing relationship with the seller, Bryan Schroeder, owner of Metro Park LLC, which he also represented in the transaction.
“Rent collections at 943 N. Crosby have remained strong during the pandemic, which is a testament to the building’s prominent location and stable tenant base,” said Smazal. “Buyers continue to deploy capital into high-end multifamily assets in core locations to achieve near-term returns as well as long-term appreciation and wealth preservation.”
Built in 2018, 943 N. Crosby offers 21 one-bedroom and six two-bedroom units. Apartments feature hardwood flooring, modern kitchens and in-unit laundry. The property also features secure garage parking, bike storage and a rooftop deck with grilling area and skyline views.
The property is the first middle-market multifamily asset to trade hands in the River North submarket in nearly three years, according to CoStar Group.
“There are a limited number of newly constructed, boutique-sized apartment buildings in this part of the city, which makes them especially appealing to investors when they become available,” said Smazal. “In this case, the property wasn’t formally listed but, through our relationships with the buyer and seller, we were able to arrange attractive terms despite the challenges created by COVID-19.”
Located one block north of 600 W. Chicago Avenue, home to Groupon and the Big Ten Network, 943 N. Crosby is also within walking distance of retail and restaurants throughout River North, as well as public transit, including the CTA’s Blue, Brown and Purple lines.
Recon Management Services Inc., also owned by Arrington, will assume management of the apartments and commercial space, which houses Premium Cabinets of Chicago.