Two multifamily buildings on Chicago’s North Side sold for above the asking price as demand for such properties shows few signs of faltering.
Investors each paid at least $30,000 over the asks in Bucktown and West Ridge, according to the Chicago Business Journal. Both sellers and buyers were represented by Chicago’s Essex Realty Group. The buyers weren’t disclosed.
Essex Realty Group’s Matt Feo (Essex)
“This is more of an indication of the level of demand for multifamily, and the lack of supply of inventory currently on the market,” said Matt Feo, a director at Essex. “Now more than ever, investors are willing to pay up for well located physical assets that they intend to hold onto for the long term as a hedge against the massive rise in inflation in today’s economic environment.”
The property in Bucktown fetched $1.6 million, $51,000 over the ask. Located at 1919 W. Armitage Ave., the building is 100 percent occupied and has six one-bedroom apartments. Each has hardwood floors, a washer and dryer and quartz countertops.
In West Ridge, an investor bought a 13-unit multifamily building at 2453–2457 W. Fargo Ave for $1.675 million, $30,000 over the asking price.
“There seems to be a trend in today’s market for stabilized buildings in quality locations,” Feo said. “With renovation costs continuing to increase, these types of assets are becoming more in high demand amongst investors looking for a long-term addition to their portfolio.”
[Chicago Business Journal] — Miranda Davis
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