Interra Realty, a Chicago-based commercial real estate investment services firm, announced it brokered the sale of a two-building, 79-unit multifamily portfolio in Chicago. The properties, located in the South Shore neighborhood, sold for $7.54 million, equivalent to $95,433 per unit.
Interra Managing Partner Lucas Fryman represented the sellers, Mendy Raskin and Jon Kranzler. Interra Senior Managing Partner Brad Feldman represented the buyer, a local private investor. The portfolio was 94 percent occupied at the time of sale.
The properties, located at 6901 and 6949 S. Paxton Ave., include a mix of three studios and 21 one-bedroom, 33 two-bedroom, 13 three-bedroom and nine four-bedroom apartments. As part of the deal, the buyers assumed the existing long-term, low-interest-rate Fannie Mae loan from the seller.
“Interra agents have completed many assumptions over the years, but this activity has picked up over the past few months due to the high interest rate environment,” said Feldman. “Because of our experience with loan assumptions, we are in an excellent position to advise our clients on the nuances associated with these transactions.”
This is the second time Interra has transacted 6901 and 6949 S. Paxton. Fryman represented Raskin and Kranzler in their 2019 acquisition of the portfolio, and he also represented the confidential seller. The properties traded for $6.65 million at that time.
“Private investors are drawn to well-run properties in desirable locations like South Shore, especially when the assets exhibit high and stable occupancy,” said Fryman. “The rent growth thesis for this neighborhood is apparent by these properties’ ability to sign new leases at higher trade-out rates during the term of the contract.”
6901 and 6949 S. Paxton are located less than a half-mile from Lake Michigan and the Lakefront Trail, and within walking distance of the South Shore Cultural Center, South Shore Golf Course and the future Obama Presidential Center, now under construction. The properties are close to several bus routes, including the Jeffery Jump, which provides express service to downtown Chicago, as well as buses connecting to the CTA’s Orange Line and Metra’s Electric District and South Shore lines.
