Search
 

Tri-Cap Realty To Spend $10M on Apartments

CHICAGO-Tri-Cap Realty is buying a 22-story apartment building for nearly $5.5 million and will spend about $4.9 million in renovations.

By Gina Kenny | Updated on April 25, 2007

(Read more on the multifamily market.)

CHICAGO-Tri-Cap Realty, based in Bloomfield Hills, MI, has purchased a 22-story apartment building at 6425 S. Lowe Ave. with plans to renovate the property. The contract price for the property was nearly $5.5 million, says Spencer Garfield, managing director of Hudson Realty Capital LLC. Hudson Realty Capital, based in New York, is providing $9.2 million in financing for the acquisition and renovation of the apartment building. Garfield said he could not disclose a cap rate because the building is mostly vacant. Garfield would not disclose the seller but said the seller was “a lender that had foreclosed on the property.”

Tri-Cap “is buying the property with the intent of renovating and renting it out. The residential market is very strong there,” Garfield says. “The property just suffered from mismanagement and neglect for a number of years.” The approximate 290,000-sf building has 303 residential units, a retail storefront unit and parking. The property had been Section 8 housing through the Department of Housing and Urban Development. The housing “was mismanaged and the Section 8 contract was revoked by HUD. A group of investors bought the property from HUD,” Garfield says. The lender foreclosed on the investors and sold the property to Tri-Cap, he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.