James Peterson and L. Jayson Lamberg’s New York-based investment firm is seeking to offload a large multifamily portfolio on Chicago’s South Side.
Pioneer Acquisitions, co-founded in 2008 by Lamberg and Peterson, has tapped commercial real estate firm Berkadia to find a buyer for 21 apartment properties totaling 1,085 units in Hyde Park, Crain’s reported. The collection of properties in the neighborhood encompassing the University of Chicago is being marketed by Berkadia’s Richard Evans, Pete Evans, Kevin Larimer, Brandon Buell and Bradley Mori.
The landlord’s local holdings includes a mix of vintage courtyard walk-ups and mid-rise buildings with apartments that average 652 square feet and rents set at $2.18 per square foot, according to marketing materials.
The properties include the 97-unit building at 1369 East Hyde Park Boulevard, the 92-unit property at 5514 South Blackstone Avenue, the 94-unit building 5110 South Kenwood Avenue, an 86-unit property at 5316 South Dorchester Avenue, and 17 other apartment assets.
Pioneer’s decision to offload its portfolio comes at a pivotal time for the South Side. Ongoing major developments, such as the Obama Presidential Center and Related Midwest’s quantum technology park at the former U.S. Steel South Works site, are expected to elevate the area’s real estate profile.
The listing also follows Chicago-based 3L Real Estate hiring Colliers to find a buyer for a four-building Hyde Park multifamily portfolio totaling more than 500 units, and that are encumbered by a total of $25 million in loans.
Pioneer’s Hyde Park portfolio has roots in its 2015 and 2016 acquisitions from the University of Chicago. Though some units cater to students, less than half are student-occupied, broadening the appeal to a wider renter demographic. While Pioneer is reducing its multifamily portfolio in Hyde Park, other firms are expanding their local holdings to capture the area’s growth.
In October, Massachusetts-based Estia Properties sold the 24-unit apartment property at 5300 South Blackstone Avenue to an undisclosed buyer for $9 million, or $375,000 per apartment. Pioneer also had invested in that property, having taken out a $7.3 million mortgage signed by Peterson in 2019, public records show.
“Multifamily properties in vibrant areas like Hyde Park are in high demand right now with particular investor focus on midsize buildings like this one,” said Interra Realty’s Joe Smazal, who represented Estia Properties in the sale.
— Andrew Terrell
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