Kiser Group Closes $18M Multifamily Portfolio Deal
The transaction marked the largest deal by sale price closed in Chicago’s South Shore in 15 years.
Kiser Group’s Partner Noah Birk and Senior Director Aaron Sklar have represented DAX Real Estate in selling three multifamily properties located in Chicago’s South Shore. The portfolio encompasses a total of 208 units and sold for $18.4 million or $88,000 per unit. The deal represents the largest one closed in the neighborhood in the last 15 years.
The three properties included in the portfolio are located at 7500 S. South Shore Drive, 6916 S. Clyde Ave. and 7038 S. Chappel Ave. and they were purchased in 2018 for a little under $12 million. According to Yardi Matrix, the seller was M. Fishman & Co.
The largest asset part of the portfolio is 7500 S. South Shore, which provides 130 studio- and one-bedroom units with rents ranging from $750 to $1,094 per square foot. The property is close to public transportation and Lake Michigan. The other two assets are smaller: 6916 S. Clyde features 53 units while 7038 S. Chappel encompasses 25 units, all of which have been recently renovated. The property at 7038 S. Chappel Ave. provides the largest floor plans for rents ranging from $1,004 to $1,515 per square foot.
With demand for rental units outpacing supply in 2019 and expected to continue throughout 2020, rents have been going up across the metro. Data from a recent Yardi Matrix report shows that urban markets such as Calumet City and Near West Side topped the list, but submarkets near the downtown core such as Hyde Park and South Shore also recorded rent increases. Multifamily buildings in South Shore have been rapidly appreciating in value according to Birk which has been attracting many out-of-state buyers.
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