5825 Michigan AveChicago, IL 60637

Property Details for 5825 Michigan Ave

Year built

1900

Construction

MASONRY/CONCRETE MASONRY UNITS (CMUS)

Lot size

0.09 AC

Property size (Sq ft)

3,927 SF

Property type

Residential income homes

Property subtype

Small apartment buildings

APN

20-15-121-008

APU

2015121008

Description

This exceptional multifamily investment opportunity encompasses a portfolio of 103 units strategically located throughout Chicago's South Side neighborhoods. The portfolio comprises 14 buildings, including twelve 2-4 unit buildings, one 7-unit building, and one 10-unit building, totaling 91,510 square feet. The diverse unit mix includes 1-5 bedroom options, catering to a wide range of tenants. Specifically, there are nine 1-bedroom, 1-bathroom units; thirty 2-bedroom, 1-bathroom units; thirty-two 3-bedroom, 1-2 bathroom units; twenty-five 4-bedroom, 1-2 bathroom units; and two 5-bedroom, 1-2 bathroom units. Additionally, five commercial spaces averaging 1200 square feet are included. The portfolio also features 34 single-family homes, offering a variety of sizes and configurations, ranging from 2-bedroom, 1-bathroom homes averaging 1,000 square feet to 5-bedroom, 1-bathroom homes at 2,000 square feet. Currently, approximately 55% of the units are occupied under various subsidized programs, including CHA, HACC, Heartland, and Catholic Charities. This portfolio boasts a compelling 7.77% cap rate and offers a potential total return of up to 9.25% in the first year, based on a 75% loan-to-value ratio and a 7.3% interest rate. An existing loan with a 5.11% interest rate, a ten-year term expiring in 2029, and a thirty-year amortization period, is in place with an approximate balance of $6,500,000, and is assumable by a qualified buyer. The portfolio presents a strong value-add opportunity, with potential for individual sales of the single-family homes and smaller multi-unit properties, given the high demand from FHA buyers. The asking price for this exceptional portfolio is $8,240,000.

• CAP approach

  CAP return

  Valuation

  6%

  $1,564,912

  6.5%

  $1,444,534

  7%

  $1,341,353

• Comparable approach

  Method

  Valuation

  Relative Method

  $792,812

  Geo Method

  $792,812

• Alternative Use

  Use

  Valuation

  Residential

  $1,444,534

  Hospitality

  $1,323,186

  Educational

  $1,100,875

  Medical

  $1,138,736

  Retail

  $1,712,472

Location Insight

City

Chicago

County

Cook

State

Illinois

Latitude

41.7885

Longitude

-87.6218

CBSA code

16980

CBSA name

CHICAGO-NAPERVILLE-JOLIET, IL-IN-WI METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

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