CHICAGO—Officials from Hilco Real Estate, LLCsay that on July 24 they will auction off a portfolio of 173 incomeproducing residential properties with a total of 401 units locatedin five northern Lake County suburbs. The portfolio, which took thecurrent owner eight years to assemble, includes single-familyhomes, multi-family buildings up to a 32-unit apartment complex anda few commercial spaces. The management company is also beingoffered for sale.

The owner, Regional Real Estate, LLC, leasesthe majority of the units to Housing ChoiceVoucher holders although a few of the homes use othersubsidized programs similar to HCV. The portfolio fills a niche inthe northern suburbs' subsidized market, and by using subsidyprograms, the portfolio has historically held an occupancy rateabove 90% and an ongoing collections loss of only 3.25%, saysJeff Azuse, senior vice president of theNorthbrook-based Hilco. Over 90% of the rent from the residents ispaid directly from one of the subsidy programs and each program hashistorically paid consistently and on time, dramatically reducinginvestment risk.

“Rarely can you find a residential portfolio of this size in aneasy-to-manage geographic area,” he adds. “This offering is anexceptional opportunity for residential real estate investors tobid on a turnkey operation that offers a stable income stream andallows buyers to immediately grab a significant market share in thesuburban Chicago residential market.”