5942 S. Michigan Ave., Chicago, IL
CHICAGO, IL—Jarrell Housing Group acquired eight rental buildings with a total of 100 units in Chicago's Washington Park neighborhood from St. Edmund's Redevelopment Corp., a Chicago-based owner and operator of affordable rental communities on the city's South Side. The $7.78 million sale price translates to about $77,805 per apartment.
David Goss and Jon Morgan, co-founders and managing principals, and Lucas Fryman, director, from Interra Realty, represented the buyer and the seller.
“It's rare to see a multifamily portfolio of this size trade hands in Washington Park,” Goss says. “The property was attractive to the buyer because of the value-add potential and location in a trending submarket. Jarrell Housing Group plans to make substantial improvements to all the properties and still maintain them as affordable housing, benefitting the community and its residents.”
The portfolio includes eight one-bedroom units; 41 two-bedroom units; 35 three-bedroom units; 15 four-bedroom units; one 1,400-square-foot commercial space and 33 parking spaces. The units are in the following developments:
- Michigan Corners – Built in 1995, the two-building property consists of 35 apartments at 5656-58 S. Michigan Ave. and 5700-02 S. Michigan Ave.
- Michigan Plaza – Built in 1998, the six-building community includes 64 apartments and a commercial space at 5701-03 S. Michigan Ave.; 5714-16 S. Michigan Ave.; 5926-28 S. Michigan Ave.; 5939-41 S. Michigan Ave.; 5942-44 S. Michigan Ave.; and 6048-58 S. Michigan Ave.
The acquisition was partially financed with tax credits from CREA, an Indianapolis-based full-service tax syndicator that specializes in affordable housing, and loan assumptions from the city of Chicago and the Illinois Housing Development Authority. Jarrell Housing Group plans to improve the properties and maintain the units as affordable for renters earning up to 60 percent of the area's median income.
All the rental buildings in the portfolio are near the lakefront, public transit including the newly redeveloped Garfield Green Line station, and educational and cultural institutions such as the University of Chicago and DuSable Museum of African American History. Also nearby is Jackson Park, the site of the proposed Obama Presidential Center, which has helped spur investment activity in the area, according to Interra.
“We're seeing an increase in investor demand in Washington Park and other nearby neighborhoods as a result of these high-profile developments,” Morgan says. “Because of our deep experience with these deals and the submarket, we were able to source a Chicago investor who understood the intricacies involved with working with a nonprofit seller and help them secure financing through tax credit dollars.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
