103-Unit Portfolio | Chicago Southsides

The "Stonysouth Side Portfolio" is a portfolio of 103 units located throughout the south side neighborhoods of Chicago. The portfolio includes 34 Single Family Homes, 64 Apartments/Condos/TH, and 5 commercial spaces spread across twelve 2-4 unit buildings, one 7-unit building, and one 10-unit building. The unit mix options are favorable, with (9) 1 bed 1 bath, (30) 2 bed 1 bath, (32) 3 bed 1-2 baths, (25) 4 bed 1-2 baths, (2) 5 bed 1-2 baths, and 5 commercial spaces with an average of 1200 sf.
The single-family homes are broken down as follows: (6) 2 bed 1 bath with an average of 1,000 sf, (8) 3 bed 1 bath with an average of 1,100 sf, (1) 3 bed 1.5 bath at 1100 sf, (1) 3 bed 2 bath at 1100 sf, (10) 4 bed 1 bath with an average of 1,500 sf, (7) 4 bed 2 bath at an average of 1,400 sf, and (1) 5 bed 1 bath at 2,000 sf. Approximately 55% of the units are rented to various subsidized programs, including CHA, HACC, Heartland, and Catholic Charities.
The portfolio presents a qualified investor with the opportunity to achieve immediate success, with a CAP Rate of 8.39% and a Total Return in year 1 up to 9.80% based on a 70% LTV and 6.75% Interest Rate. The exit strategy would be to improve the single-family homes and the 2-4 unit multi-unit properties and sell them individually, as the market has seen a high demand for FHA buyers seeking to buy their first home or first investment property. A qualified buyer has the option to assume the current loan in place. The loan has a 5.11% Interest Rate, a ten-year loan term expiring in 2029, and a thirty-year amortization period. The approximate loan balance is $6,500,000.