An undisclosed East Coast investor has purchased a $17 million multifamily portfolio in Chicago’s Hyde Park in a deal that closed this week.
The 79-unit portfolio includes 1310 E. Hyde Park Blvd., 1318 E. Hyde Park Blvd., and 1334 E. Hyde Park Blvd. The seller is Pioneer UC II, a Delaware limited liability company, with a headquarters address in New York. Interra Realty, which handled the sale, would not say what entity is behind the LLC nor would they disclose the buyer, who isn’t yet listed in public records. The brokerage did say both the buyer and seller were on the East Coast.
Chicago-based Interra Realty’s Ted Stratman and Joe Smazal brokered the deal, Smazal on behalf of the seller and Stratman on behalf of the buyer. The transaction is the largest deal the firm has brokered since the $23.4 million sale of The Cloisters, an 86-unit Hyde Park apartment complex in 2021.
The owner of the three-building portfolio that sold this week had previously renovated 90 percent of the units, and the buyer plans to install energy-efficient boilers, replace the roofs, and complete the renovation of the remaining units, according to Interra. The buildings are about one mile north of the University of Chicago Hyde Park Campus.
“The fact that these buildings traded between two coastal investors testifies to the continued attractiveness of Chicago’s multifamily properties to out-of-state buyers who understand their value potential,” said Smazal. “This portfolio offered immediate economies of scale in a high-demand, low-sale-velocity submarket, with many improvements already made but room for additional rent growth.
Multifamily deals have had a slow summer in Chicago as interest rate hikes required renegotiation of prices and many buyers backed out of previously negotiated deals as lenders tightened loan requirements.
Interra said the company secured multiple offers and we’re able to close the deal despite ongoing uncertainty in the market.
“These properties presented a long-term client with an opportunity to substantially add to its South Side portfolio,” Stratman said. ”A value-add opportunity of this size in Hyde Park is rare.”
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