Interra Realty, a Chicago-based commercial real estate investment services firm, has brokered the sales of a $2.1 million mixed-use property and $2.1 million rental community in Chicago’s Austin and Bronzeville neighborhoods.
“These deals illustrate the interest investors have in buildings with a reliable performance in neighborhoods that have experienced less price appreciation,” said Jon Morgan, co-founder and managing principal of Interra Realty. “Because of our block-by-block familiarity with these areas, we are able to source opportunities for buyers who are interested in properties with upside potential.”
The mixed-use building at 5550 W. North Avenue in Chicago’s Austin neighborhood comprises 31 rental units and four retail spaces, three of which were leased at the time of sale. Lucas Fryman, director at Interra Realty, represented the buyer and seller in the transaction, which resulted in one of the highest-ever per-unit prices in the neighborhood at $60,000.
Nearly 100 percent occupied, the 17 two-bed/one-bath and 13 one-bed/one-bath apartments feature loft-style exposed brick, renovated kitchens and baths, central air and in-unit washer/dryer hook-ups. The building was recently improved with updated electrical and plumbing.
“The sale at 5550 W. North Ave. is a great example of continued investor demand for economies of scale through the acquisition of larger apartment buildings with upgraded finishes and stable operations,” said Fryman. “A recently executed, personally guaranteed long-term retail lease and consistent occupancy in both the multifamily and retail spaces made this property even more attractive.”
Located in Chicago’s Bronzeville neighborhood, 4901 S. Michigan Avenue is a 20-unit multifamily building made up of of larger two-, three- and four-bedroom apartments. The buyer is planning a small capital investment to improve the façade of the building, which was built in 1898 and last underwent a renovation about 10 years ago, with smaller upgrades over the last decade.
Interra managing partner Brad Feldman and director Adam Saxon represented both the buyer and seller. At over $105,000 per unit, the sale represents one of highest-ever prices per unit for an existing apartment building in the surrounding area.
“Bronzeville continues to attract a range of renters, creating opportunities for investors who are willing to improve existing buildings to enhance their marketability,” said Feldman. “With its larger floor plans and 100 percent occupancy at the time of closing, this building was on the market less than a month and generated multiple offers.”