South Shore Apartments Going For Record Prices
South Shore is far from Chicago's most lucrative multifamily market, but it has begun attracting interest from coastal investors. San Francisco-based Belveron Partners just acquired for $16.8M both Shorewind Towers, at 7000 South Shore Drive, and Shorewind Court, nearby at 6951 South Oglesby Ave.
The two-property transaction, which totaled 238 units, was the largest by dollar amount and unit count in the submarket since 2009, according to CoStar.
“This sale underscores the rising profile of South Shore in the eyes of both local and out-of-state investors,” said Interra Realty Senior Managing Partner Joe Smazal, who represented the seller, Chicago-based TLC Management Co.
Smazal said between 25 and 30 prospective buyers toured the property, with nine submitting written offers.
“Rents and property values have been slower to appreciate in some of these South Side neighborhoods, so there’s more upside for buyers willing to venture outside Chicago’s downtown core. In the case of the Shorewind properties, the proximity to the lakefront and planned developments like the Obama Presidential Center and Tiger Woods-designed golf course also supports long-term value.”
The 16-story, 178-unit Shorewind Towers was built in 1927 and includes a mix of studio and one- to four-bedroom apartments. Shorewind Court Apartments, located just down the block, is a three-story, 60-unit community built in 1920 with studio, one-, two- and three-bedroom units.
Belveron Partners, a privately held firm, focuses on preserving affordable and workforce housing across the U.S.
“Shorewind suits our mission of investing in low- and middle-income rental housing, ensuring that current residents of neighborhoods like South Shore are not displaced by future development,” President and founding partner Paul Odland said.
Other South Shore landlords are seeking to take advantage of current investor interest. Chicago-based Apartment Investment Advisors just offered for sale a portfolio of four buildings clustered along Jeffrey Avenue and 71st Place.
The portfolio consists of 7144 South Jeffrey Ave., 7130 South Jeffrey Ave., 7147 South Jeffrey Ave., 1962 East 71st Place and a 34-space parking lot.
The asking price is $16.2M for 208 units, or about $77K per unit.