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4611 S. Drexel Blvd Opportunity - 44-Unit Apartment Building

Chicago, IL, 60653
See on the map $5,250,000
  • EquityBuild Inc. Property

Property Summary

Buildings like this don't come onto the market very often.

Located just a few blocks north of Chicago's gentrified Hyde Park area, this Kenwood neighborhood property is a rare opportunity. Sales cap rates in the neighborhood have been compressing continuously, accentuating its investment potential.

This is an unusually large and beautifully landscaped courtyard building. 22 to 25 of its 44 units will be targeted for CHA voucher tenants.

The building will receive a full overhaul of its electrical system, a new roof, and parapet wall restoration. Plumbing repairs will be made in sections of the building, and as existing tenants move out, the units will receive upgrades as needed in order to generate the desired income.

Located on beautiful, tree-lined stretch of Drexel Boulevard that stretches down to Washington Park, the property is also easy walking distance to Jackson Park - recently announced as the future home of the Obama Presidential Library (regardless of where you stand politically, presidential libraries have a record of raising area property values) -- and Burnham Park, Chicago's six-mile long park that stretches down the shore of Lake Michigan.

The building is near churches, restaurants, shops and schools. The campus of the University of Chicago lies just to the south. It is convenient to public transportation, with the 47th Street stations for both the Green Line L Train and the Metrarail nearby, along with multiple bus stops.

Our analysis indicates that the property will generate more than enough revenue to cover mortgage payments on the building as well as all of the property's operating expenses, and still return positive cash flow. This is why we consider this multi-unit building to be an excellent investment opportunity.

The property is priced at $5,250,000.

More Information

Proposed Terms

Property Type
44 units
Refers to the kind of property, including the number of units in the building.
Total Purchase Price
$5,250,000
The combined price to buy the building plus estimated building renovation costs.
Projected Cash Outlay
$1,405,534
The amount of cash out of pocket that will be required to complete the purchase. Includes down payment and building rehab costs.
Full Stabilized Cap Rateee
9.49%
No Description found!
Projected Refi/Resale Cap Rate Used in Model
7.00%
No Description found!
Area Market Cap Rate
6.50-7.50%
No Description found!
Cash on Cash Return, Year 3
16.26%
Cash on cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, shown as a percentage. Year 3 is once the property has reached full stabilization, and the building is fully rented.
Avg. Internal Rate of Return, Year 7
25.38%
The average value of the stream of Cash on Cash returns produced by the property through Year 7. This is the rate of return that would be required to equal the benefit of owning the property.
Proposed Unit Configuration (BRs/BAs)
14- 1BR/1BA, 30- 2BR/1BA
This describes how many units contain a specified number of bedrooms and bathrooms.
Monthly Gross Rent (per unit)
$900-1,000, $1,000-1,200
No Description found!
Gross Potential Rent (annual/monthly)
$587,045/ $48,920
The total amount of rent the property can generate, provided all units are filled for the full year, and the mix of tenants between subsidized and non-subsidized conforms to projections.
Real Estate Taxes
$19,179
The annual tax amount for the property.
Leasing Commissions
$7,355
No Description found!
Insurance
$10,609
This is the estimated annual cost for insuring the property.
Gas - Heat
$27,544
This is the estimated cost for these utilities, based on individual properties.
Electric
$3,480
This is the estimated cost for these utilities, based on individual properties.
Water
$27,632
This is the estimated cost for these utilities, based on individual properties.
Trash
$2,200
This is the estimated cost for these utilities, based on individual properties.
Snow Removal/Landscaping
$2,200
No Description found!
Pest Control
$2,200
This is the estimated cost for these utilities, based on individual properties.
Legal
$2,200
No Description found!
Repairs and Maintenance
$22,000
The estimated cost for repairs and maintenance within a year.
G and A
$8,800
No Description found!
Management Fee – 5%
$27,319
No Description found!
Net Operating Income (annual/monthly)
$383,661/ $31,972
The amount of money generated by the property, less the regular expenses required to keep it in operation. Does not include financial costs like mortgage payments.
Free Cash Flow (annual/monthly)
$188,454/ $15,705
The amount of money generated by the property after all associated expenses have been paid, including operating and financial costs.

EquityBuild Comments

EquityBuild is changing the real estate investing industry by proudly providing three unique, industry-leading guarantees on every property we sell. These guarantees are straightforward, clear and available to you so that the risks of past are now met with guarantees that are changing real estate investing from this day forward. Call Now!

Call 877-978-1869 to find out more.

EquityBuild Difference

EquityBuild is a client advocate in a real estate world where we build life-long relationships to create turn-key solutions that consistently deliver double-digit returns. Real estate investment opportunities are carefully selected based on EquityBuild’s proprietary econometric model that identifies properties with strong upside and minimal risk. To learn more about EquityBuild and how you can invest directly in real estate with expert guidance and no landlord hassles please call (877) 978-1869.

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