Chicago-based Interra Realty has brokered the $16.8 million, 238-unit sale of Shorewind Towers, located at 7000 S. South Shore Drive, and Shorewind Court, nearby at 6951 S. Oglesby Avenue, in Chicago’s South Shore neighborhood. The two-property transaction was the largest by dollar amount and unit count in the submarket since 2009, according to CoStar.
The seller, Chicago-based TLC Management Company, was represented by Interra’s Joe Smazal, senior managing partner; Lucas Fryman, director; Jon Morgan, co-founder and managing principal and David Goss, co-founder and managing principal. The buyer, San Francisco-based Belveron Partners LLC, was represented by Interra’s Pat Kennelly, managing partner, and Paul Waterloo, director.
“This sale underscores the rising profile of South Shore in the eyes of both local and out-of-state investors,” said Smazal, adding that between 25 and 30 prospective buyers toured the property, with nine submitting written offers. “Rents and property values have been slower to appreciate in some of these South Side neighborhoods, so there’s more upside for buyers willing to venture outside Chicago’s downtown core. In the case of the Shorewind properties, the proximity to the lakefront and planned developments like the Obama Presidential Center and Tiger Woods-designed golf course also support long-term value.”
Shorewind Towers is a 16-story, 178-unit building that was completed in 1927 and includes a mix of studio and one- to four-bedroom apartments. The property was designed by the famed architectural firm of McNally & Quinn and featured in the 2004 book Chicago Apartments: A Century of Lakefront Luxury. Shorewind Court Apartments, located just down the block from Shorewind Towers, is a three-story, 60-unit community built in 1920 and comprising studio, one-, two- and three-bedroom units. Also included in the sale was a gated parking lot at 2344 E. 70th Place.
Amenities shared by the two buildings include a fitness center, business center, on-site laundry, on-site management office, package delivery system and bike storage, many of which are unique offerings in the submarket.
“These communities are an ideal opportunity to invest in well-located, well-constructed properties in a city where we are always looking for more ways to be involved,” said Paul Odland, founding partner and president of Belveron Partners, a privately held firm focused on preserving affordable and workforce housing across the U.S. “Shorewind suits our mission of investing in low- and middle-income rental housing, ensuring that current residents of neighborhoods like South Shore are not displaced by future development.”
The Shorewind properties are within walking distance to several CTA bus routes, including express routes to downtown, as well as the Metra Electric District line, which connects to Millennium Station. Also nearby is the southern terminus of the Lakefront Trail, an 18-mile path that extends north along the Lake Michigan shoreline to Ardmore Avenue.