CHICAGO—The 223-unit Sheridan-Edgewater Apartments located at 5200 N. Sheridan Rd. in Chicago's Edgewater neighborhood has been put up for sale, and officials from Kiser Institutional Group, the listing brokerage firm, say that although the massive property is far from downtown, they expect to attract attention from institutional investors.
“We are expecting to see offers north of $125,000 a door,” Susan Tjarksen, principal, managing broker of KIG, tells GlobeSt.com, or nearly $28 million. “Institutional investors from both coasts are showing increased interest in Chicago neighborhoods— especially Uptown, Logan Square and Edgewater. This is the biggest asset to be traded at a national level.”
Originally built in the 1920s to serve as a luxury hotel, the building, now owned by the Kopley Group, features a mix of efficiencies, studios and one- and two-bedroom apartments. The first floor has about 25,000 square feet of vacant retail space which new owners can reconfigure for parking, amenities, or new commercial tenants.
“An investor can significantly increase his or her presence in a stable rental market by purchasing this one building,” says Tjarksen. “This asset will fit perfectly into an institutional portfolio.”
Residential units range from 300 square-foot studios to 1,350 square-foot two-bedroom apartments. Each apartment has hardwood floors and modern appliances. Amenities include laundry facilities and a workout room.
“There is a lot of upside for the buyer of this property,” says Todd Stofflet, managing partner of KIG. “With studio and one-bedroom units making up 98% of the overall unit mix, the building meets the rental demand of students from nearby Loyola University to young professionals working downtown. The building can also be repositioned to attract a more sophisticated tenancy and the abundance of first-floor space provides enormous opportunity in the form of highly visible amenity space, management office suite and/or future retail.”
“The new ownership could also enhance the property with roof-top decks,” Stofflet adds. “The views of parks and Lake Michigan are incredible, and either of the expansive rooftops of the mid-level roof decks could be adapted for common area usage as an outdoor amenity.”
Tenants also have a lot of transportation options. The building sits at the intersection of Foster Ave. and Sheridan Rd., CTA buses go past its doorstep, and a CTA Rapid Transit line is within two blocks.
“We have already seen strong interest and are expecting to call for offers by the end of the month,” says Tjarksen.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
