Transaction involved assumable loan with sub-3% interest rate
Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it brokered the $11 million sale of Madison Terrace, a 96-unit apartment building at 3121-51 W. Madison St. in Chicago’s East Garfield Park neighborhood. At $115,000, the per-unit price was one of the highest in the last 10 years in the immediate submarket, per CoStar data.
Interra Managing Partners Ted Stratman and Lucas Fryman represented both the private buyer, which included a Chicago-based owner-operator and an investor based in the Northeast, and the sellers, Jonanthan and Elliot Shainberg of ShainRealty Capital. The purchaser assumed the asset’s existing mortgage, which carries a sub-3% interest rate, and will also benefit from reduced property taxes through Cook County’s Class 9 incentive program.
“We continue to see strong interest in properties with long-term assumable debt, particularly those that offer additional value-add potential,” said Stratman, who together with Fryman was able to procure multiple qualified offers. “This trend is evident not only with local buyers but also coastal capital that continues to flow into Chicago, including in neighborhoods like East Garfield Park that, historically, have not seen as much out-of-state investment.”
“One of the most attractive features of the deal is the loan assumption,” said Jonathan Shainberg. “We had acquired the property in a low-interest-rate environment, allowing us to lock in a 2.83% fixed-rate Fannie Mae loan for seven years. This enticed the buyer to want the deal even more.”
Built in the 1980s, the property includes a mix of two-, three- and four-bedroom apartments, on-site laundry and 70 parking spaces. The new owner plans to continue renovation of apartments and potentially add bedrooms, increasing the affordable housing stock in the immediate area. A portion of the units are reserved for low- and middle-income households earning up to 80% of the area median income.
Madison Terrace is a block from the 184-acre Garfield Park, whose famed conservatory is one of the largest in the country, and a half-mile or less from stations along the CTA’s Green and Blue lines and Metra’s Union Pacific West line.
About Interra Realty:
Founded in 2010, Interra Realty is a Chicago-based commercial real estate services firm that delivers integrated, tailored solutions through its boutique, client-focused approach and team of experienced professionals. Since its inception, the firm has closed thousands of transactions valued in excess of $2 billion spanning the multifamily, office and retail sectors, as well as loan sales. Interra’s clients range from private investors and high-net-worth individuals to large financial institutions, private equity groups and hedge funds. For more information, visit www.interrarealty.com.
Madison Terrace: Interra Realty brokered the $11 million sale of Madison Terrace, a 96-unit apartment building at 3121-51 W. Madison St. in Chicago’s East Garfield Park neighborhood.