Essex Realty Group Selling 740-Unit Chicago Rental Portfolio
- Apr 19, 2012
Chicago—Essex Realty Group Inc. has been named the exclusive broker for a 740-unit portfolio of five buildings in the Uptown and Rogers Park neighborhoods of Chicago.
The North Side properties are being offered for sale at $29.95 million, with the Menetti family, the seller of the properties, willing to package the buildings together or sell as individual transactions.
“They are all very well located properties and the portfolio includes some of the largest and most prominent apartment buildings on the North Side,” Matt Welke, principal and managing director of Chicago-based Essex Realty Group, tells MHN. “They have tremendous curb appeal and given their location and the ability to make improvements, I think it will draw a strong investment demand.”
The two uptown properties include the 376-unit Lawrence House, a 12-story elevator building at 1020 W. Lawrence Ave., which is listed at $10 million, and the seven-story, 102-unit Sheridan View Apartments at 4526 N. Sheridan Road, listed at $3.75 million.
While nearly 85 percent of the current tenants of the Lawrence House are over 55 years, the property is not licensed or restricted to lease exclusively to senior citizens and any new owner can do what he wants with the 357 studios, 13 one-bedroom units and one two-bedroom, two-bath penthouse.
“Uptown has seen a significant amount of condominium conversion activity during the boom years, and this has reduced the supply of rental housing while producing a positive impact on apartment values,” says Doug Imber, co-broker and president of Essex Realty Group.
The three East Rogers Park buildings are located approximately 10 miles north of Chicago’s Loop and are not far from Lake Michigan, 13 beaches, 10 public parks and Loyola University. CTA Red Line stations are also located nearby at Loyola, Morse, Jarvis and Howard streets.
They are comprised of the 13-story, 124-unit Astor House, at 1246 W. Pratt Blvd., listed for $7.7 million; the 78-unit 7645 N. Sheridan Rd., located just one block from Lake Michigan, listed for $5.5 million; and the 60-unit 1673 W. Pratt Blvd.
Welke believes that the portfolio offers a unique value-added opportunity due to the generally below market rents the properties offer and the modest improvements that can be made.
“There have been a lot of capital improvements done, like boilers, windows and big-ticket items, but the units themselves—the kitchens and baths—haven’t had a recent update so a new investor can come in, make those unit improvements that tenants will really benefit from and pay for,” Welke says. “A portfolio like this is pretty rare for this area. The current rental market justifies strong rent trough these improvements.”