New Western, a Texas company that buys distressed homes to sell to rehabilitators, opened its first Chicago office, aiming to revitalize $543 million of properties in five years.
Vacant properties, such as those damaged by fire, cost a third less than newly constructed homes, New Wester President Kurt Carlton said in a statement. “Providing affordable housing, especially in large markets like Chicago, is vital,” he said.
The Chicago office, in Westchester, is among 80 locations that the Irving, Texas company aims to open this year, doubling its number of offices. Founded in 2008, New Western has bought more than 40,000 homes and says it’s the largest private source of investment properties in the country.
An average property for New Western is about 60 years old and costs about $232,000. More than 16 million homes are vacant across the nation, according to a LendingTree analysis.
“There is a disconnection in Chicago between what investors need and the properties that are available,” General Manager Richard Randall said in the statement. “Our business model works incredibly well in this environment.”
The company’s expansion also includes a new office in Washington D.C. and additional offices in some of the areas the company already serves, according to the Dallas Morning News.
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