101378 . 39 Home SFR Chicago, IL

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Address: 101378 . 39 Home SFR Chicago, IL
Created date: February 20, 2024
Date last updated: February 20, 2024
  • AUCTION March 4th-6th - All buyers must register at TenX
  • Scattered home portfolio offering a diversified unit mix
  • Homes are concentrated for ease of management
  • The average home size is 1,251/sf with the majority (90%) consisting of 3- & 4-bedroom homes
  • All Homes are located in the city of Chicago and Cook County
  • The average vintage of the homes is 1951
  • Over $200,000 of capital expenditures have been placed across the portfolio
  • The portfolio has been professionally managed and maintained, reducing costs for the next Buyer
  • Long-term tenants in place
  • Value-add opportunity with current rents 10.3% below current market rents
  • Strong In-place Cap Rate of 7.34%
  • Huge projected revenue growth to market rents and an additional with 14.5% projected rent growth through 2027
  • The projected stabilized Year 1 NOI at market rents is $597,470, with a strong 9.38% cap rate
  • Gross yield is anticipated to be 15.61% at stabilization
  • Conventional financing available for qualified Buyers
  • Current rents average $1,908/month
  • Projected market rents today are estimated to be $2,063/month
  • High historical occupancy of 95%
  • All SVN® Offices Are Independently Owned & Operated
  • Local Broker License Information: www.SFRhub.com/realestatelicensing

Property Description

Contact: TOM JOHNSTON Managing Director | Designated Broker SVN | SFRhub Marketplace T: 602.441.5354 C: 602.403.3695 [email protected] License #: BR507919000 BOR: SVN | Chicago Commercial MICHAEL THANASOURAS Managing Director SVN | SFRhub Marketplace is pleased to present to qualified investors this 39-Home SFR portfolio scattered about the south side of Chicago, Illinois. Most of these homes are south of Highway 20 and west of Interstate 94. The investment portfolio consists of a majority of 3- and 4-bedroom homes, with a couple of 2- and 5-bedroom homes as well. The portfolio has consistently operated at 95% occupancy, per 2023 P&L, and the next investor/operator has a significant value-add opportunity with current rents 10.3% below market rents. The current owner has invested over $200,000 in capital expenses over the last couple of years and has maintained these homes in good rental conditions with long-term tenants in place. The average vintage of these homes is 1951, and all are in Cook County, Chicago. The average asking price per home of $163,289, over $100K below the median home price in Chicago of $265,900, according to John Burns Real Estate Consulting. New home permits are scheduled to fall nearly 10% in 2024, further driving rental demand, which has risen 4.9% YOY and is projected to rise 14.5% between now through 2027 in the Chicago area. Strong revenue growth coupled with limited supply for housing offers tremendous value-add with both cash flow and home price appreciation for the next Buyer. Home values are projected to rise 11.8% through 2027, according to John Burns. Chicago has always been a strong rental market and currently ranks #47 for rental households of the top 99 renter household markets in the country. Given the rise in rates and the inability of most families to purchase a home in the coming years, this rental portfolio is poised to outperform current numbers, offering the next Buyer the opportunity to take advantage of high occupancies and push rents moving forward. During and post-pandemic, Chicago did not see a massive rise in home values compared to the southern portion of the United States, though home values still appreciated 22% from 2021-2023, with rental increases projected to rise along with home values for the next several years. According to John Burns Real Estate Consulting, current home values are up 7.4% YOY, given the low supply of inventory available to purchase. This investment offering is a huge opportunity to build on the currently under-rented homes here and take advantage of natural rent growth post-stabilization, offering the next investor an opportunity to grow rents and take advantage of home price appreciation for several years to come. This portfolio offers strong cash flow given current annual in-place rental income of $892,788, showing strong rent growth over 2023 revenues and historical occupancy of 95%. Operating expenses for 2023 were $384,866, which shows an attractive in place NOI of $467,459, boasting a solid 7.34% cap rate for well-maintained homes. As mentioned above, current rents are well below market rents, offering the next buyer a significant opportunity to grow revenue, optimize expenses, and drive NOI margin.

Key Property Information

Listing Status: Available
Listing Type: Call for offers
Property Types: Apartment Buildings
No. of Units: 39
Year Built: 1951
Lot Size: 5.33 Sq ft
Opportunity Zone: No
Property Website Click Here
Address: W Pershing Rd, Chicago, IL, USA
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