Interra Realty arranges $5.78 million sale of luxury apartment building in Chicago’s Lincoln Park neighborhood

Property attracts out-of-state 1031 buyer, fetches submarket’s highest price per unit in four years

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1513-17 W Diversey
Interra Realty brokered the $5.78 million sale of 1513-17 W. Diversey Parkway, a 12-unit luxury apartment building in Chicago’s Lincoln Park neighborhood.

Interra Realty, a Chicago-based commercial real estate investment services firm, announced it brokered the $5.78 million sale of 1513-17 W. Diversey Parkway, a 12-unit luxury apartment building in Chicago’s Lincoln Park neighborhood. The price per unit was $481,250, the highest in the submarket in four years and third-highest ever in the same area, according to CoStar data.

Director Jeremy Morton and Managing Partner Ted Stratman represented the seller, a private local real estate developer, using a virtual tour and marketing campaign that attracted multiple offers. The winning buyer was a private investor from California who purchased the property in a 1031 exchange.

“That we achieved this price in the middle of a pandemic attests to the stability of multifamily, particularly in a core neighborhood like Lincoln Park,” said Morton. “The 1031 buyer was looking for a turnkey property to buy and hold for the long term, and 1513-17 W. Diversey fit the bill. By appealing the property’s assessed value, which is currently inflated, the buyer should be able to reduce future tax obligations.”

Built in 2017 as condos but always run as a rental building, 1513-17 W. Diversey Parkway has four three-bedroom duplexes, four two-bedrooms and four two-bedroom duplexes with rooftop decks. Units feature quartz countertops, high-end appliances and marble baths. The main floor duplexes have steam showers, and the two top-floor duplexes offer city views from their private rooftops. The property was 100% occupied at the time of sale.

1513-17 W. Diversey offers proximity to shops and restaurants on Diversey and is steps to multiple bus lines, including those connecting to the CTA’s Brown, Purple, Red and Blue lines.

Morton and Stratman are among the most active multifamily brokers in the Lincoln Park submarket. Last year, they brokered the $10.6 million sale of 1540 W. Fullerton Ave., a transaction that achieved the highest sale price and per unit price for the submarket in 2019.