A Chicago-based real estate investment services firm brokered two multifamily deals worth $10.2 million on the city’s South Side.
Neither the buyers nor the sellers for both properties were disclosed. The company said the sales demonstrate ongoing investor interest in Class B and below properties that require some renovation and repositioning.
The Hyde Park property, 5124-32 S. Kimbark Ave., is a 44-unit condo deconversion, and the South Shore property, at 7820 S. South Shore Drive, is a 24-unit rental building.
“These two deals also demonstrate the ongoing interest in multifamily properties requiring some level of renovation, which when complete, translates to higher rents and increased return on investment,” Interra Managing Partner Lucas Fryman, said in a release.
The firm represented both the buyer and sellers in the deconversion sale of the Kimbark Avenue building, which sold for $8.71 million. The firm assisted the building’s association in navigating the deconversion process, through which condominiums are sold to a single buyer and converted to rentals. The property includes a mix of one-, two- and three-bedroom apartments. The buyer plans to make updates to the building’s common areas.
The firm also represented the buyer and seller in the sale of the South Shore property, which traded for $1.51 million, or $63,125 per unit.The seller had purchased the building in 2019 and had since replaced the roof and windows and remedied a foundation issue. The property was built in 1966 and has 19 one-bedroom apartments and five two-bedroom units.
The two sales show the impact of major developments on the South Side, including the Obama Presidential Center and infrastructure work.
“With the strong pipeline of new development in the surrounding area – such as the start of construction on the Obama Presidential Center last fall – submarkets on Chicago’s South Side continue to be healthy and attract strong interest from a variety of investors, including out-of-state buyers looking to enter the Chicago market,” Fryman said.
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