Apartment complex in Chicago’s Wrigleyville sells
Sale part of 1031 exchange
A New York investor sold a 26-unit courtyard building across the street from Wrigley Field for $7.4 million.
The sale of 3708-14 N. Sheffield Ave., was part of a 1031 exchange, or a transaction that allows a seller to avoid capital gains taxes if the proceeds are reinvested within a certain timeframe, according to Yield Pro. Chicago-based Interra Realty, which represented both sides of the deal, didn’t disclose the buyer or seller.
The sale comes as Chicago’s rental market begins to rebound. Renters absorbed almost 9,900 units from April to June, the strongest quarter for leasing in more than 10 years, according to Marcus & Millichap. The biggest gains were from people moving from out of state, according to Luxury Living Chicago Realty, a Chicago apartment leasing firm that tracks relocations from out of state as well as the suburbs.
“Demand for apartments in Wrigleyville has always been robust, and new developments around Wrigley Field have only increased the appeal for renters,” Interra’s Joe Smazal told Yield Pro. “The buyer quickly recognized the appeal and bought the asset as part of an exchange from multiple smaller multifamily properties.”
The building, built in 1927, includes 23 one-bedroom units and three two-bedroom units. Located near the intersection of Waveland and Sheffield, it’s close to several CTA bus routes and the Addison Red Line station. Residents have access to Gallagher Way, a mixed-use complex near Wrigley Field that includes a Whole Foods supermarket.
It’s also near a new 10,000-square-foot cannabis store in the former John Barleycorn bar.
[Yield Prol] — Harrison Connery