Six Apartment Properties on Market

A Chicago-based private investor is selling the properties, which have a combined 128 apartments and 500 sf of commercial space.

The six properties are:
-The Flamingo Apartments, 1319 Meridian Ave.
-The Polo Apartments, 1619 Jefferson Ave.
-Monterrey Apartments, 1611 Michigan Ave.
-The Cameo Apartments, 529 15th St.
-The DiLisa Apartments, 1306-1310 Euclid Ave.
-The Marbot Apartments, 1330 Collins Ave.

These include 92 studio units and 36 one-bedroom units. The properties, within one-quarter of a mile of each other, have undergone more than $1.6 million in renovations in the past year. Their overall occupancy is about 92%. The owner uses the commercial space as a rental office.

"This offering presents the opportunity for a relatively rare bulk sale," Gregory Celentano, a listing agent for the properties, says in a statement. "At the list price, the portfolio is priced at a 6% cap rate. By stabilizing the rents within a 12-to-18-month period, the cap rate would move into the 7.6%-plus range."

He adds that, "The buyer also has the option to build considerable upside by eventually selling the buildings individually, or continuing to furnish units and rent short-term, or converting the units to condominiums."

Marcus & Millichap Real Estate Investment Brokerage Co. will exclusively market the apartment portfolio. Along with Celentano, Mark Wohl is a listing agent. Both agents are investment specialists in the company's Fort Lauderdale office.