Chicago Investor Buys South Side Property, Plans Rehab
- Aug 23, 2012
Chicago—Tricap Chicago, an apartment property specialist, has acquired a 31-unit apartment building on South Greenwood Ave. in Hyde Park’s Kenwood neighborhood. The firm plans a complete gut rehab of the three-story courtyard building and expects the renovated property to be available for lease in spring 2013.
Purchased from a private family estate, the building dates back to the 1920s and is one of only a handful of apartment buildings in a neighborhood predominately made up of single-family homes of similar vintage. The property is located less than four blocks from the home of Kenwood’s best-known residents, President Barack Obama and First Lady Michelle Obama.
According to Tricap principal Bryan Pritchard, with the planned upgrades the building will be an attractive option for those looking to rent in this part of Hyde Park. The planned renovation will update individual apartments with various finishes, such as hardwood floors, granite countertops, and stainless steel appliances. Also, some of the building’s current one- and two-bedroom layouts will be reconfigured so that the building will offer three-bedroom floor plans for the first time.
Tricap Chicago financed the acquisition of the property through the Community Investment Corporation (CIC), including an energy loan that’s part of the CIC’s Energy Savers program. Under the terms of the energy loan, Tricap will implement energy-efficient modifications, including an historic window renovation. Other energy- efficient updates will include the installation of wall and ceiling insulation and low-flow plumbing fixtures.
Like most parts of the city, vacancies have been going down while rents are going up on the South Side of Chicago. According to investment specialist Marcus & Millichap, the vacancy rate for the South Side apartment markets that it tracks was 4.8 percent during the second quarter of 2012, down 40 basis points since the same quarter last year. Rents have increased 3.3 percent year-over-year.