Interra Realty, a Chicago-based commercial real estate investment services firm, announced the $5.46 million sale of two recently rehabbed rental properties in Chicago’s South Shore neighborhood: 7646 S. Essex Ave., a 30-unit apartment building, and 7800 S. Phillips Ave., a 33-unit community. Including both assets, the price per unit was $86,667.
Interra Managing Partner Ted Stratman and Director Jeremy Morton represented both the seller, Iron Bridge Lending, and the undisclosed buyer, a local multifamily owner and operator. Within two weeks of marketing the portfolio, the Interra team procured multiple list-price offers and closed the deal in 45 days.
“Recently rehabbed apartment buildings are in extremely high demand among renters and investors alike,” said Stratman. “Both of these buildings were gut-rehabbed in the past two years, creating turnkey assets for the buyer and new affordable housing options for the neighborhood.”
Reflecting its appeal, the portfolio garnered one of the highest per-unit prices in this pocket of South Shore in recent years, according to CoStar.
Units in the two buildings, both constructed in 1926, include a mix of one-, two- and three-bedroom apartments and, collectively, were 88 percent occupied at the time of the sale. The extensive renovations included the addition of in-unit HVAC, on-site laundry, key fob entry and security systems.
“The properties were vacant when I first met the ownership group nearly five years ago,” said Stratman. “The subsequent stabilization of the buildings, coupled with low interest rates and a growing preference for buildings of this size and quality, made it an ideal time to bring the properties to market. Our ability to attract multiple bids and sell at list price in just 45 days reflects continued investor interest in similar properties.”
Located about 10 miles from downtown Chicago, the buildings are served by multiple CTA bus routes, including the No. J14 Jeffery Jump, which provides express service to downtown, and the No. 75 74th-75th, which provides service to the Red Line. They also are close to the Metra Electric District line, Lake Shore Drive, Dan Ryan Expressway and Chicago Skyway.