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CHICAGO-An Evanston, IL-based real estate investor has sold the Farcroft, an 86-unit apartment building, for $8 million. The property was acquired by a real estate operator, who is based out of the Rogers Park neighborhood of Chicago in which the building is located.

The new owner plans extensive renovations to the units’ interiors as well as common elements, including an elevator and the building’s electric systems.

“The location was the prime reason the buyer purchased it, since the property is two buildings off of the lake,” says Eric Bell, SVP at Marcus & Millichap, who represented the seller. “About 50% of the building has lake views, which adds to the location. It’s an architecturally significant building, and that’s another reason they bought it.” The buyer was represented by Doug Fischer of Essex Realty.

The former owner operates around 3,000 units on the north side of Chicago, and had owned the Farcroft for more than five years. They sold the 13-story property because it didn’t fit the profile of the majority of their other assets, most of which are smaller in size, three-story walk-ups. The Farcroft has recently had work done on its facade and windows.

Though the building was at one time considered a good candidate for condo conversion, due to the current market, the building will remain apartments for the foreseeable future, Bell says. The property offers mostly one- and two-bedroom units, which average in size around 790 and 1025 square feet respectively. Average rents for the one-bedroom units are around $850 and near $1050 for the two-bedrooms, though Bell says rents are likely to increase based on the planned capital improvements.

The Farcroft, at 1337 W. Fargo Ave., was built in 1928 and designed by architect Charles Wheeler Nicol. The building, which was about 95% occupied at closing, is located in the East Rogers Park submarket.

“Multifamily is solid near the lake, but further west, it’s not as strong,” Bell says. “Most buildings that are well-operated are in decent shape and doing pretty well right now. With the job losses however, we’ll see how much that effects it.”

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