CHICAGO, IL - Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it brokered the sale of a 31-unit apartment building at 4915 S. Drexel Blvd. in the city’s Kenwood neighborhood. The $4.068 million sale price equated to $131,250 per unit.
Interra Senior Managing Partner Brad Feldman represented both the seller, a confidential local operator, and the buyer, a local private partnership that completed the deal as part of a 1031 exchange. This is the first time the property has traded hands in over 20 years.
“As investors continue to gravitate toward Hyde Park and Kenwood — due to the proximity of the University of Chicago, a diverse culture and a well-rounded offering of retail, dining and entertainment amenities — the neighborhoods have seen strong rent growth,” said Feldman. “This transaction is demonstrative of the heightened demand, reflected in a per-unit price that is above average for vintage, value-add properties in this submarket.”
Originally constructed in 1926, the property includes 10 one-bedroom, 15 two-bedroom and six three-bedroom layouts. The building has undergone several improvements in recent years, including plumbing upgrades, a new reflective roof coating, tuckpointing and window replacements. The buyer plans to transition operations of the building from market-rate to affordable housing.
4915 S. Drexel is within walking distance of numerous amenities and attractions, including the Museum of Science and Industry, Washington Park and Lake Michigan. The property is approximately 1 mile from the CTA’s 51st Street Green Line station and is served by multiple CTA bus routes.
This is the third transaction Feldman has closed in the Kenwood-Hyde Park submarket in the past six months. In July, he brokered the $6.6 million sale of a 33-unit mixed-use property at 5704 S. Harper Ave. In June, he sold the eight-unit 5130 S. Greenwood Ave. for $2.92 million, achieving the highest price per unit for a vintage property in the submarket at $365,000 per unit, according to CoStar data.
About Interra Realty: Founded in 2010, Interra Realty is a Chicago-based commercial real estate services firm that delivers integrated, tailored solutions through its boutique, client-focused approach and team of experienced professionals. Since its inception, the firm has closed thousands of transactions valued in excess of several billion spanning the multifamily, office and retail sectors, as well as loan sales. Interra’s clients range from private investors and high-net-worth individuals to large financial institutions, private equity groups and hedge funds. For more information, visit www.interrarealty.com