Essex Realty Group, Inc. has been exclusively engaged to sell the West Ridge Portfolio, which consists of seven multifamily properties, totaling 111 apartments.

Five of the seven properties are located in Chicago’s West Ridge neighborhood, while two of the properties are located nearby in the Albany Park neighborhood. Six of the seven buildings (100 of the 111 units) were renovated to condominium quality condition between 2008 and 2020. The remaining 11 units also have undergone substantial renovations. Similarly, 100 of the units include individual HVAC, while 74 of those units also have in-unit laundry. The apartments are among the better appointed in their submarkets, and the buildings have little to no deferred maintenance.

Current ownership has benefitted from utilizing the Chicago Housing Authority’s Housing Choice Voucher program, which applies federal funding to subsidize rent for qualified renters. This strategy has allowed the seller to achieve high occupancy with low turnover. Approximately 78% of the portfolio’s residents receive vouchers.

The portfolio is currently financed with long-term, fixed-rate, interest-only loans that are assumable and would provide a new owner with outsized cash flows. The overall loans to value total 65.74%, with a blended interest rate of 4.57%, and a remaining average term of approximately 7 years.

West Ridge is known as one of Chicago’s most historically and culturally abundant neighborhoods. West Ridge has become a cherished community that boasts thriving retail lining Devon Avenue, historic mansions along Ridge and Lunt Avenues, and cultural institutions such as St. Scholastica Academy.

Albany Park is one of the seventy-seven well-defined community areas in Chicago and is situated approximately eight miles from downtown Chicago’s Business District. Bordered by the North Branch Chicago River, Albany Park boasts a mix of residential areas, parks, and vibrant commercial corridors.

• Long-term, fixed-rate, interest-only loans with a 65.75% loan-to-value ratio, a blended interest rate of 4.57%, and an average remaining term of approximately 7 years.
• Provides superior cash flows compared to other northside options, with 10.7% Cash on Cash Returns from Day #1.
• Northside scale with 111 units, including 1, 2, 3, and 4-bedroom apartments 68% are 2-bedroom; condo quality finishes rehabbed since 2008; and 35 parking spaces.
• Currently, 89 of 111 units are rented through CHA, which provides up to two months of vacancy coverage and helps maintain low vacancies and strong cash flow.
• The Cook County Affordable Housing Incentive Program can reduce 35% of the assessed property value if rehab costs exceed $12.50 per square foot, applicable for up to 30 years.