Logan Square 6 Unit Case Study
The commercial brokerage team at Root Realty represented a client selling his 6-flat building. MLS history shows that the sale price was the fifth highest in Chicago’s Logan Square history. This case study covers the high points of that transaction.
Property highlights:
- Property Type – Commercial Multifamily
- Building Size – 11264 sqft
- Avg Unit Size- 1408 sqft Lot
- Size – 8,444 sqft
- Year Built – 1928
- 6 Units with two non-conforming/illegal basement units
- Unit Mix – Four 3 bed 1 bath, Three 2 bed 1 bath
- Brick center entrance building
- 5 Covered parking spaces
- Individual furnaces
- No Income
Deal highlights:
- Sale price: $1,750,000
- $291,666 Per Unit
- Off Market
- Only two showings with highly qualified buyers
- 45 Day Closing
- Local Buyer
- Under contract within a week
- No Inspection and No Mortgage Contingency
- Fifth highest 6-unit sale price in Logan Square History Only seven 5-6 Unit properties have sold in Chicago at that price point or above over the last 12 months.
How We Brought Value to the Deal:
The property was owner-occupied, with family members living in most of the units. Property taxes doubled in the last couple of years. There was no rental income.
The building was very well-maintained. During the pricing consultation, we highlighted the fact that this six-flat’s new owner could legally add two additional basement units with the city’s ADU program. It certainly helped that the basement units were already rehabbed.
The owner wanted to minimize the amount of traffic coming into the property. The Root Sales team contacted investors on our Buyer/Investor list who had previously indicated that they would like this type of asset. We also called every buyer who had purchased a similar property in Logan Square over the last two years with information that is gathered from public records.
We found a buyer who owned several properties in the area and was willing to make a strong offer in a week. After a few rounds of negotiations, a contract was finalized with closing dates and other terms hammered out to the satisfaction of both parties.
It seems that there is no shortage of doom and gloom in the current market. Terrific transactions are happening all the time. Qualified buyers are willing to make fair offers for properties. Lenders and investors are being far more meticulous, so it is even more imperative for owners and brokers to work together to have an effective pricing and marketing strategy before contacting potential buyers.
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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