Essex Realty Group, Inc. has been exclusively engaged to market for sale 7900 S. Merrill Ave. in Chicago, Illinois. The subject property is a 15-unit corner courtyard building located adjacent to the intersection of Merrill Avenue and 79th Street in Chicago’s South Shore neighborhood.
The current unit mix consists of fifteen (15) spacious 2 Bd/1 Ba units with five (5) of the fifteen (15) units having been recently renovated. Additionally, the building has undergone extensive capital improvements that include a new boiler (2016), updated in-unit circuit breakers and copper plumbing.
The subject property presents an investor with the opportunity to acquire a multi-family building with significant value-add potential. Current apartment rents are substantially below the market. New ownership may be able to increase rents of approximately $1,060 per unit per month with cosmetic rehab. For example, the two-bedroom units at the Subject Property currently rent for $936/month (average), while rehabbed two-bedroom units in the immediate area rent for $1,250/month. These increases could provide new ownership with approximately $56,500 (a 30% approx. increase) of additional annual rental income after rehab.
South Shore is bounded by 67th Street to the north, 79th Street to the south, Stony Island Avenue to the west and Lake Michigan to the east. The proximity to Lake Shore Drive and the South Shore Metra train makes the area very accessible for downtown commuters. The beautiful architecture of the area highlights the prominence of the neighborhood.
The neighborhood encompasses Rainbow Beach, which provides access to Lake Michigan for residents and visitors of South Shore. Jackson Park, the Museum of Science and Industry and The University of Chicago are all located within four miles of South Shore. Several highly anticipated projects, including the Obama Presidential Center, are already beginning to affect the local real estate market.
According to an analysis by CoStar, the past 12 months have seen a record $103 million dollars in sales in the area. This is up from a long-term average of $36 million dollars. Further, an increase in renter demand has caused the average occupancy to reach a 20 year high.
- Fifteen (15) Spacious 2 Bd/1 Ba Units
- Five (5) Units have been Recently Renovated
- 30% Increase in Rental Upside through Minor Cosmetic Updates
- New High-Efficiency Boiler & Copper Plumbing
- Twelve (12) Exterior Parking Spaces
- 1.5 miles from beaches, golf courses, and retail