5 Unit Commercial Apartment Building Sale
The commercial brokerage team at Root Realty represented an in house client selling their 5-flat building. This architecturally significant building was an off market sale, the first time it’s traded hands in nearly 30 years. This case study covers the high points of that transaction.
- Property Type – Commercial Multifamily
- Building Size – 4800 sqft
- Avg Unit Size- 960 sqft
- Lot Size – 5,200 sqft
- Year Built – 1890
- 5 Units with non-conforming basement unit and separate side lot
- Unit Mix –One 3 bed 3 bath, Two 2 bed 1 bath, Two one bed one bath
- 2 car garage and 2 uncovered parking spaces
- Individual furnaces
- $110k gross income
- Sale price: $1,300,000
- Off Market
- Seller preferred a quiet, non-disruptive listing experience
- Root team prequalified interest from a number of active buyers
- Provided a limited number of tours
- 45 Day Closing
- Local Buyer
- Under contract within 12 days
- As-Is and No Mortgage Contingency
- First time this property has been offered for sale and traded hands in 30 years
How We Brought Value to the Deal:
We understood that the value of this property had more to do with the location, potential, and space offered, more than the current rents being collected. We priced it on that potential and began working the phones to investors we knew would understand that viewpoint.
The building was well-maintained but had not been updated in years and had capex needs. The buyer would certainly plan to remodel the building to bring the rents to market.
Soon after our calls began, we were in serious conversations with a handful of buyers. A few tours later, we had three offers to consider. We chose the best fit for this deal and were then under contract moving towards closing. We are always hands-on with the many tasks and due dates involved while in escrow. Doing so, we can ensure our clients and investors the punctuality, accuracy, and addressing of any hurdles that may arise to keep the deal on track. We closed a little more than 45 days from when our team began marketing the property to our investor pool.
If you have any questions about selling a multifamily building in Chicago and would like a free consultation, please click this link – bit.ly/contactroot
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