Investor Pays $7M for 90-Unit Apt Complex

CHICAGO-Marcus & Millichap has represented both buyer and seller in the acquisition of the 90-unit North Side multifamily property for $6.9 million. The building, at 6954 N. Sheridan, is 92% occupied. The property, which dates back to the 1970s, was sold by private investor Steve Pekic and purchased by north side investor David Gassman.

James Clough, VP of investments in Marcus & Millichap’s Chicago O’Hare office, and Jack Cassin and Bill Cassin, senior associates in the Downtown Chicago office, represented both parties in the sale. Pekic plans to reinvest the money into another property, according to the company. The building solicited a strong amount of interest in the time it was on the market, Cassin says. “There’s a lot of misconceptions about the market, but there’s no shortage of buyers for property on the north side of Chicago,” Jack Cassin tells GlobeSt.com.

The studios and one- and two-bedroom units range in size from 450 to 900 sf, with rental rates ranging from $600 to $950. The building also offers residents 45 parking spaces. Clough says Gassman is looking to increase rents in the building, cut expenses, and possibly update some amenities in the individual units.

Gassman was drawn to the building since he owns another property in the Rogers Park submarket, Clough says. “The submarket is still pretty strong,” Clough tells GlobeSt.com. “A well-located building in that submarket still gets some good activity. This property is in a great location, and in good condition.” The building is on the northwest corner of Sheridan and Morse Avenue, just one block from Lake Michigan.