Breneman Capital announced that it has acquired the apartment community known as Ashland Place located at 33 S Ashland Ave in Chicago, Illinois.
The apartment building is located in Chicago’s West Loop neighborhood – one of the most desirable and amenity-rich locations in the entire country. The acquisition reinforces Breneman Capital’s footprint in the Chicago multifamily market where the firm has been investing for over 10 years.
The investment includes an attractive loan assumption at 73.5% loan-to-value, 4.60% fixed interest rate, and roughly five years of remaining term; representing a rare opportunity to achieve day-one positive leverage. The basis also represents a significant discount to replacement cost and trades of comparable properties in the West Loop neighborhood. The property will be managed by Dwelle Properties, a full-service property management firm founded in 2019 by Drew Breneman and Sam Meyer. Breneman Capital intends to maximize value by capitalizing on its existing scale and synergies in the Chicago multifamily market to eliminate loss-to-lease, increase ancillary income, and optimize expenses to be in line with comparable properties across its portfolio.
“This deal is predicated on high cash flow, long-term thinking, and pride of ownership. More than that, we’re sticking to what we know. Chicago is where I cut my teeth investing in real estate, and our relationships here are as deep-rooted as anyone’s. The fact that we could source and execute such a lucrative investment opportunity in today’s economic environment is a testament to our local expertise and the platform we’ve built here over the last 10 years. Ashland Place is a massive win for our investors and our company,” says Drew Breneman, 38, Breneman Capital’s Founder & CEO.
“At the end of the day, real estate is local. And that this property is less than a 10-minute walk from our office, I think, is emblematic of who we are. We live and work in the West Loop, and that gives us a massive advantage in terms of sourcing and operating. Operations is where I make my mark, and there’s a lot of potential to improve efficiencies at this property while continuing to benefit from the West Loop’s growth,” says Sam Meyer, 34, Dwelle Properties Co-Founder.
“I find it fitting that this acquisition marks exactly three years to the date since we closed our last deal in Chicago. It’s also been 16 months since our last investment overall. Our patience and hard work between deals are what culminated this. This is an acquisition that checks all the boxes for us – a phenomenal basis, an attractive loan assumption, great cash flow, and a property and location that we absolutely love. Chicago has been one of the most resilient multifamily markets in the country over the last year-plus, and we’re really excited about the prospects of this investment,” says Evan Dillon, 28, Vice President.
“Special thanks to the Breneman Capital team including Sam Meyer, Evan Dillon, Tom Stein, and Sam Markin for their hard work to make this acquisition possible,” says Drew Breneman.
