274 Multifamily Units Get New Owners

CHICAGO-Two North Side multifamily rental properties have changed hands in separate deals just under $10 million each. A 166-unit class B property at 6807 N. Sheridan Rd. in the Rogers Park neighborhood changed hands for $9.75 million while a 108-unit “four-plus-one” building at 525 W. Oakdale St. in Lakeview sold for $9.6 million.

“Despite the volatile national economy, Chicago apartments remain sound investments,” opines Estella Kiser, senior associate with Marcus & Millichap Real Estate Investment Brokerage Co., which was the sole broker in the Rogers Park deal. “The property is well-located in its submarket and has been extensively renovated, creating a solid long-term investment.”

Market conditions helped Inland Real Estate Sales, Inc. achieve a sales price of $88,000 per unit for 525 W. Oakdale St., extremely high for a “four-plus-one” building. Built in the 1960s and ‘70s, four-plus-ones feature off-street, covered parking at ground level or slightly below grade, with four stories of rental units starting at the second floor. While not necessarily the first choice of investors, the product type’s popularity has grown as parking becomes increasingly scarce, Inland brokers note.

“The main advantage to this type of building in this location is the availability of parking,” says senior broker Ronald Traub, who co-brokered the deal with Inland sales associate Galina Patterson. “Since parking in the Lakeview area is in short supply, the off-street, enclosed parking that comes with the building is almost invaluable.”

Horizon Group IX, LLC bought the building in an area that is seeing continued condominium conversion and rehab activity from Oakdale Limited Partnership.

Steve Livaditis of Marcus & Millichap represented the buyer, Chicago-based Kopley Group, of the 78-year-old, 98,000-sf building on Sheridan Road. The property was 97% occupied at the time of sale, which closed in 12 weeks.