Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it brokered the sale of eight rental buildings with a total of 100 units in Chicago’s Washington Park neighborhood. The $7.78 million sale price equated to approximately $77,805 per apartment.
David Goss and Jon Morgan, Interra co-founders and managing principals, and Lucas Fryman, Interra director, represented the buyer, Jarrell Housing Group, and the seller, St. Edmund’s Redevelopment Corp., a Chicago-based owner and operator of affordable rental communities on the city’s South Side.
“It’s rare to see a multifamily portfolio of this size trade hands in Washington Park,” Goss said. “The property was attractive to the buyer because of the value-add potential and location in a trending submarket. Jarrell Housing Group plans to make substantial improvements to all the properties and still maintain them as affordable housing, benefitting the community and its residents.”
In total, the portfolio includes eight one-bedroom units; 41 two-bedroom units; 35 three-bedroom units; 15 four-bedroom units; one 1,400-square-foot commercial space and 33 parking spaces. The units are located in the following developments:
- Michigan Corners – Built in 1995, the two-building property consists of 35 apartments at 5656-58 S. Michigan Ave. and 5700-02 S. Michigan Ave.
- Michigan Plaza – Built in 1998, the six-building community includes 64 apartments and a commercial space at 5701-03 S. Michigan Ave.; 5714-16 S. Michigan Ave.; 5926-28 S. Michigan Ave.; 5939-41 S. Michigan Ave.; 5942-44 S. Michigan Ave.; and 6048-58 S. Michigan Ave.
The acquisition was partially financed with tax credits from CREA LLC, an Indianapolis-based full-service tax syndicator that specializes in affordable housing, and loan assumptions from the city of Chicago and the Illinois Housing Development Authority. Jarrell Housing Group plans to improve the properties and maintain the units as affordable for renters earning up to 60 percent of the area’s median income.
All the rental buildings in the portfolio offer proximity to the lakefront, public transit including the newly redeveloped Garfield Green Line station, and educational and cultural institutions such as the University of Chicago and DuSable Museum of African American History. Also nearby is Jackson Park, the site of the proposed Obama Presidential Center, which has helped spur investment activity in the area, according to Interra.
“We’re seeing an increase in investor demand in Washington Park and other nearby neighborhoods as a result of these high-profile developments,” Morgan said. “Because of our deep experience with these deals and the submarket, we were able to source a Chicago investor who understood the intricacies involved with working with a nonprofit seller and help them secure financing through tax credit dollars.”
About Interra Realty:
Founded in 2010, Interra Realty is a Chicago-based commercial real-estate investment 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 $1 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.
Interra Realty brokered the $7.78 million sale of an eight-building portfolio in Chicago’s Washington Park that included this building at 5701-03 S. Michigan Ave.