CHICAGO—Officials from Hilco Real Estate, LLC say that on July 24 they will auction off a portfolio of 173 income producing residential properties with a total of 401 units located in five northern Lake County suburbs. The portfolio, which took the current owner eight years to assemble, includes single-family homes, multi-family buildings up to a 32-unit apartment complex and a few commercial spaces. The management company is also being offered for sale.

The owner, Regional Real Estate, LLC, leases the majority of the units to Housing Choice Voucher holders although a few of the homes use other subsidized programs similar to HCV. The portfolio fills a niche in the northern suburbs' subsidized market, and by using subsidy programs, the portfolio has historically held an occupancy rate above 90% and an ongoing collections loss of only 3.25%, says Jeff Azuse, senior vice president of the Northbrook-based Hilco. Over 90% of the rent from the residents is paid directly from one of the subsidy programs and each program has historically paid consistently and on time, dramatically reducing investment risk.

“Rarely can you find a residential portfolio of this size in an easy-to-manage geographic area,” he adds. “This offering is an exceptional opportunity for residential real estate investors to bid on a turnkey operation that offers a stable income stream and allows buyers to immediately grab a significant market share in the suburban Chicago residential market.”