(Read more on the multifamily market.)
CHICAGO-Newcastle Ltd., based here, has purchased three apartment buildings in Chicago's Uptown neighborhood for a total of $18.5 million. Michael Haney, president and chief executive officer of Newcastle, would not disclose the identity of the seller but said it is a private investor and "a long-term Chicago-based owner that has owned the properties for, I think, 20 years or more."
The seller was represented in the transaction by the Kiser Group. Haney would not disclose a cap rate for the acquisition. The portfolio, which has a total of 220 apartment units and a total of 97,115 sf, consists of a nine-story 115-unit building at 4157 N. Clarendon Ave.; a four-story 44-unit building at 823 W. Buena Ave. and a four-story 61-unit courtyard complex at 855 W. Buena Ave.
The buildings were all constructed in the 1920s and are "virtually fully occupied," Haney says. The majority of the units are studio and one-bedroom apartments with some two-bedroom apartments as well. The average unit sizes are 412 sf for 4157 N. Clarendon Ave., 425 sf for 823 W. Buena Ave. and 509 sf for 855 W. Buena Ave. Amenities include ceramic tile baths, hardwood or parquet floors, laundry facilities and bike storage. Newcastle plans to do some renovations to the common areas of the buildings and for some upgrades "as appropriate" to the units as they turnover, he said.
Realty & Mortgage Co., based here, has been hired to manage the properties, Haney says. An average rent or rent range was not available but studio apartments for the portfolio listed on Realty & Mortgage's website range from $565 to $775.
The buildings were purchased as part of the firm's $500-million investment platform. "They are well located properties… . They are close to public transportation, the Sheridan El stop for example," Haney says. "They are also in close proximity to recreational amenities [such as] Chicago's lakefront and the lakefront parks." Newcastle is focusing on multifamily and retail properties with a transaction range between $5 million and $50 million. "It is targeted towards buying properties in urban areas in the Chicago area, including the city of Chicago and downtown areas of Chicago suburbs."
The firm is acquiring stabilized assets, redevelopment properties and developments, he says. Newcastle has acquired more than 600 apartment units for the investment platform since the beginning of the year.
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