Los Angeles-based ShainRealty Capital has acquired a 96-unit apartment complex located at 3147 W. Madison in East Garfield Park on Chicago’s West Side has sold. SVN Chicago Commercial arranged the transaction for both seller and buyer.
The 1986-built property, located one mile from the United Center, sold for $8,200,000. Jeff Baasch, senior vice president and Finley Askin, advisor of SVN Chicago Commercial, brokered the deal. The deal penciled in at a going-in 6.9 percent cap rate, $93 price per square foot and $85,416 per door.
The property presents an excellent opportunity for ShainRealty to acquire a sizeable multifamily asset from a long-term owner with significant rental upside. Madison Terrace, located in East Garfield Park, Chicago consists of 96 units, approximately 800 square feet each, including an excellent unit mix of 48 two-bedroom, 41 three-bedroom and seven four-bedroom units.
“This acquisition made complete sense for us as it is rare to see a multifamily opportunity of this size, unit mix and newer vintage of construction to be available,” said Jonathan Shainberg of ShainRealty Capital. “We plan on executing an immediate and sizeable capex renovation plan to enhance the asset.”
The property also encompasses a “Class 9 Real Estate Tax Designation,” offering a 50 percent decrease in property tax assessments as well as tenant-paid heat throughout. The complex is almost entirely leased to Section 8, on an individual voucher basis through the Chicago Housing Authority. Arbor Realty Trust provided the Fannie Mae debt of $6,756,000 at a 2.81 percent interest rate for seven years.
