CHICAGO, IL - Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it brokered the sale of a 204-unit multifamily portfolio in Chicago’s Kenwood neighborhood. Comprising six buildings, the portfolio sold for $27 million, the equivalent of $132,353 per apartment.
Interra Managing Partners Lucas Fryman and Ted Stratman, along with Associate Sam Gutierrez, represented the seller, New York-based real estate investment group Raskin Risers. Fryman, Stratman and Gutierrez also procured the undisclosed buyer.
Stratman and Fryman were part of the Interra team that brokered Raskin Risers’ $17.9 million acquisition of the portfolio in 2020. They are members of the firm’s South Side team, which is the leading multifamily brokerage team on the South Side by total dollar sales volume, according to CoStar data.
“This sale exemplifies investors’ continued demand for rental opportunities on Chicago’s South Side,” said Stratman. “There is strong appetite for buildings in Kenwood and Bronzeville, in particular, as these neighborhoods have seen a renaissance in recent years.”
The properties are located at 811 E. 46th St., 4500 S. Drexel Blvd., 4001 S. Ellis Ave., 4433 S. Greenwood Ave., 4727 S. Ingleside Ave. and 4746 S. Ingleside Ave. Originally built in the 1920s, the buildings consist of six studios, 22 one-bedrooms, 84 two-bedrooms, 88 three-bedrooms, two four-bedrooms and two five-bedrooms.
The portfolio was 90% occupied at the time of the transaction. Some of the apartments are set aside for renters meeting affordable housing guidelines set by the Illinois Housing Development Authority (IHDA) and city of Chicago.
New ownership plans to upgrade select units with renovated kitchens and baths, executing a value-add strategy that has been successful for previous investments.
“This portfolio was a perfect fit for the buyer, whose business model is centered around thoughtfully improving the quality of housing while maintaining affordability,” said Fryman. “Our experience selling affordable portfolios helped propel the deal, even as interest rates rose drastically while the assets were in escrow.”
The properties are served by the CTA’s Green Line, Metra’s South Shore Line and multiple CTA bus routes. Nearby amenities include access to Lake Michigan, as well as a variety of restaurants, shopping centers and parks.
This is the second recent transaction that Fryman, Stratman and Gutierrez have completed for Raskin Risers, having closed last month on the sale of 5550 W. North Ave. in Chicago’s Austin neighborhood.
About Interra Realty: Founded in 2010, Interra Realty is a Chicago-based commercial real estate services firm that delivers integrated, tailored solutions through its boutique, client-focused approach and team of experienced professionals. Since its inception, the firm has closed thousands of transactions valued in excess of $2 billion spanning the multifamily, office and retail sectors, as well as loan sales. Interra’s clients range from private investors and high-net-worth individuals to large financial institutions, private equity groups and hedge funds. For more information, visit www.interrarealty.com.