Interra Realty, a Chicago-based commercial real estate investment services firm, announced it negotiated the $12 million sale of 5505 S. Dorchester Ave., a 34-unit rental community in Chicago’s Hyde Park neighborhood. The price per unit of $352,941 was a record for the submarket, according to CoStar data.
Interra Senior Managing Partner Brad Feldman represented both the private seller, a local developer, and local buyer, 5505 S. Dorchester LLC, which purchased the building in an off-market sale. The buyer plans to add a rooftop deck and may add amenities to the basement, including a business center or gym.
“Attesting to Hyde Park’s healthy apartment market, 5505 S. Dorchester is a nearly new, fully stabilized apartment building with large, condo-quality units in a prime location,” said Feldman. “Its investment appeal is reflected in the strong price per unit, the highest of all time in that submarket. We were able to bring a few prospective buyers through the property on a discrete, off-market basis and negotiate a deal with one who already owned property nearby and purchased 5505 S. Dorchester in a 1031 exchange.”
Built in 2020, 5505 S. Dorchester includes three studios, 19 one-bedrooms, six two-bedrooms and six three-bedrooms. The building has a covered garage with 20 parking spaces as well as 14 surface parking spaces.
Residents have easy access to CTA bus and rail lines, the Metra Electric District Line and DuSable Lake Shore Drive and are less than a mile from the University of Chicago, Museum of Science and Industry, Promontory Point and Lake Michigan.