Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it brokered the $23.45 million sale of The Cloisters, a 13-story, 86-unit rental community at 5801 S. Dorchester Ave. in Chicago’s Hyde Park neighborhood, securing the highest price for any single multifamily asset in Hyde Park in over a decade and a price per unit of $272,675.
Interra co-founders and Principals David Goss and Jon Morgan, Senior Managing Partner Joe Smazal and Associate Mark Dykstra represented the seller, the Baptist Theological Union (BTU). BTU bought The Cloisters in 1961 from the University of Chicago, which since then has managed the property. Interra guided BTU step by step through the marketing and sales process and sourced the buyer, Antheus Capital, which plans to upgrade units and continue to rent to university faculty and staff while also expanding to students and other renters.
“After BTU received an unsolicited offer and was introduced to Interra to perform a valuation, the nonprofit engaged us to exclusively market the property,” said Smazal. “Even with a target price that far exceeded the unsolicited offer, we were able to quickly generate tremendous interest, and the competition drove bids even higher. The buyer was selected not only because of its aggressive price and terms, but also because of its large portfolio of similar properties and the seller’s confidence it will be a good steward of the property for years to come.”
“The Cloisters is a well-known Hyde Park property and the longtime residence of many people,” said Goss. “I know of one woman who has been there 50 years. This property has literally never been on the market, and we were honored BTU chose us to sell the property and help them through the sale process. The Hyde Park market is especially hot right now, which helped us attract a lot of national attention and land an excellent price.”
According to Emporis, famous Cloisters residents have included sculptor Lorado Taft, Nobel laureates Leon Lederman and Charles Higgins, and conservative scholar Allan Bloom. The building gets its name from the covered walkway on one side of a central courtyard, which also has a fountain feeding a long pool through a narrow channel, like the gardens of La Alhambra in Grenada, Spain.
Built in 1928, The Cloisters features 22 one-bedroom units, 19 two-bedrooms, 21 three-bedrooms, 13 four-bedrooms, 9 five-bedrooms and two six-bedrooms. All are served by semi-private elevators and include herringbone wood floors, well-maintained vintage woodwork and updated finishes in kitchens and baths. Many units have striking Lake Michigan and downtown Chicago skyline views. The property also includes 13 surface parking spaces on a separate lot.
The Cloisters is served by several bus routes, about a block from the 59th Street/University of Chicago Metra station, which provides service to downtown. It is also steps to the University of Chicago, University of Chicago Lab Schools, Chicago Theological Seminary, Harris School of Public Policy and Midway Plaisance. Jackson Park, home to the Museum of Science and Industry and the future site of the Obama Presidential Center, is just east of the property along the Lake Michigan shoreline.
