Seasonal activity of residential multifamily sales in Chicago may have slowed in January but plenty of Buyers and Sellers were still participating in the market. Here's a list of 6 good income property buys across the north side neighborhoods of Chicago last month.
3750 N Albany Ave
2 units // Bank owned
Initially listed for $179,900 in mid 2013, this foreclosure seemed ripe for the picking. Unfortunately, it went in and out of contract at least 8 times (per MLS). It might have had something to due with the fact the building was a Fannie Mae Homepath Property and was initially reserved for owner-occupy buyers. It appeared to need a full gut rehab. Something better suited for a seasoned investor to tackle. The buyer of the property closed with cash so I'm assuming it was an investor who finally picked it up, most likely looking to fix and flip the house.
(click on the images to enlarge)
4340 N Francisco Ave
4 units (possible 5th) // Bank owned
This one was a no-brainer. It sold right away, over the asking price. Definitely an odd unit make-up for such a small income property. Previous MLS listings represented that the building was 5 units with a possible 6th basement unit. Rents were listed between $650-$700/mo. That's $40K in annual gross rental income for a building that cost $261,000. At 6.5 times the gross rent (potential), you can't go wrong.
2053 W Cuyler Ave
2 units // Value-add or tear down for land
This property was on the market for all of 2 days. Probably not even that long when you consider the listing real estate agent and selling agent work in the same office (i.e. sold before print). This is an ideal tear-down for a new construction home despite the somewhat shorter lot (118' deep). Sales of standard lots in this neighborhood have varied between the mid to high $300's up to the high $400's over the past year. For an open-market sale, a buyer will typically pay $140-$150/sf making this buy at 2053 W Cuyler a fair to good deal for a home builder or rehabber.
3054 N Southport Ave
This Chicago north side 2 flat is a classic case study of the dangers of over-pricing. Initially priced at $625,000, the property was on the market for about one month, then taken off between April and August. Maybe it was under contract and the buyer blew out, who knows. In any case, the listing price was reduced to $525,000 when it came back on MLS in Aug then reduced again to $515,000 in Sep.
I'm sure the property needed work, otherwise it would have sold much sooner and for a considerably higher price in this part of Lakeview. With a $485,000 purchase price, there's plenty of room for the buyer to add value. On a side note, the MLS had this listed as a 21' wide lot. The tax records state the lot is 25' x 129' and it's pretty close to 25' when you measure it on the City of Chicago Zoning website. That's oversized and valuable, even on this unloved stretch of Southport.
2418 W Wilson
Nice multifamily building sale on 30' wide lot, located in Lincoln Square which is a neighborhood of Chicago that is quickly recovering all the value lost since the market crashed. Unfortunately, the seller lost money in this transaction despite the recent surge in property values. At the rate brick 2 flats are appreciating in the Bell School district just south of Lincoln Square, I don't think it will be long before this property is valued in the $600's again.
1243 W Wrightwood Ave
4 units // 37.5' x 129' lot in Lincoln Park
Huge lot sold in Lincoln Park for just over $210/sf. Great price for both parties. I'm sure the long-time owner/seller was very pleased. Even though the property looked to be in good condition, this is a tear down that sold for land value. Look for a spectacular new construction home later this year or early next year.