Stony South Side Portfolio

The "Stony Southside Portfolio" is located in various neighborhoods of Chicago's south sides.Jameson Commercial Real Estate has been exclusively engaged to market a portfolio of 103 units located throughout the south side neighborhoods of Chicago. The portfolio includes 34 Single-Family Homes, 64 Apartments/Condos/TH, and 5 commercial spaces spread across twelve 2-4 unit buildings, one 7-unit building, and one 10-unit building. The unit mix options are favorable ranging from 1-bedroom 1-bath to 5-bedroom 2.5 bath configurations, along with 5 commercial spaces averaging 1,200 square feet. Approximately 52% of the portfolio is rented to Section 8. The portfolio presents a qualified investor with the opportunity to achieve immediate success, with a CAP Rate near 8.50% and a Cash-on-Cash Return of 11.37% in year one, based on a 75% LTV and a 6.25% Interest Rate. However, new rent determinations by CHA affecting 30-35% of the portfolio will increase starting in January and March of 2025. By stabilizing the remaining vacant units, a savvy investor could potentially achieve a CAP Rate of 11.35% and a Cash-on-Cash Return of over 23% within the first two years. The exit strategy would be to improve the single-family homes and the 2-4 unit multi-unit properties and sell them individually, as the market has seen a high demand for FHA buyers seeking to buy their first home or first investment property. A qualified buyer has the option to assume the current loan in place. The loan has a 5.11% Interest Rate, a ten-year loan term expiring in 2029, and a thirty-year amortization period. The approximate loan balance is $6,500,000.