Icarus Investment Group Buys Chicago Asset
The investor also assumed the outstanding balance of a CMBS loan held by Fannie Mae.
ShainRealty Capital has sold Madison Terrace, a 96-unit multifamily community in Chicago, for $11 million. Icarus Investment Group acquired the asset, according to Yardi Matrix information. Interra Realty brokered the transaction.
The acquisition involved the assumption of the outstanding balance of a $6.8 million CMBS loan held by Fannie Mae, the same data source shows. Arbor Realty Trust originated the 7-year note—which carries a 2.81 percent fixed interest rate—in 2020. The buyer also benefits from reduced property taxes through the Cook County Class 9 Incentive program.
Completed in 1983, the property comprises eight three-story buildings across a roughly 4.8-acre site. It encompasses two-, three- and four-bedroom floorplans ranging from 768 to 997 square feet, along with 70 parking spaces and on-site laundry facilities.
A portion of the residences are designated as affordable, catering to households earning up to 80 percent of the area media income. The new owner plans to further renovate the apartments, as well as potentially add new bedrooms and increase the affordable housing component.
Located at 3121-51 W. Madison St., in an Opportunity Zone, Madison Terrace is close to Garfield Park and roughly 5 miles west of downtown Chicago, as well as some 2 miles form John H. Stroger Jr. Hospital of Cook County. The property is also near Interstate 290 access and various public transit stations.
Chicago investors favor value-add assets
With this sale, ShainRealty has exited the Chicago market, Connect CRE reported. Interra Realty Managing Partners Ted Stratman and Lucas Fryman represented both parties.
During 2023’s first 11 months investments in the Chicago multifamily market totaled $2.3 billion, a 31 percent drop from the same period in the previous year, according to a recent Yardi Matrix report. Value-add properties increased in popularity among investors, as 40 of the 60 assets that traded through November belonged to the rent-by-necessity segment. The per-unit price also grew nearly 12 percent over the year, reaching $207,487.
