Acquisition Date: December 2014
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At a glance
Status: Realized |
Sale Date: June 2022
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Background
This is a multifamily apartment building in Chicago’s Bridgeport neighborhood, and its many entertainment and dining options. We chose this neighborhood after performing a market study that led us to believe that the western portion of Bridgeport was positioned to outperform the rest of Chicago in terms of rent growth.
This is a multifamily apartment building in Chicago’s Bridgeport neighborhood, and its many entertainment and dining options. We chose this neighborhood after performing a market study that led us to believe that the western portion of Bridgeport was positioned to outperform the rest of Chicago in terms of rent growth.
ESRE Approach
We acquired the property directly from the owner after a marketing campaign in the area. Though the purchase price was below market value, the property had significant building violations that excluded many buyers with less experience. Additionally, the interior of the units had not been updated in decades and needed extensive renovation. We first completed the violation repairs and then began renovating the building.
2 years after the acquisition we executed a cash-out refinance of the property of 1.6 times our initial equity.
We acquired the property directly from the owner after a marketing campaign in the area. Though the purchase price was below market value, the property had significant building violations that excluded many buyers with less experience. Additionally, the interior of the units had not been updated in decades and needed extensive renovation. We first completed the violation repairs and then began renovating the building.
2 years after the acquisition we executed a cash-out refinance of the property of 1.6 times our initial equity.
WHY ESRE
1Midwest Undervalued Markets
Targeting growing Midwest markets with favorable demographic trends and less competition but more favorable purchase multiples than other US Markets |
2Data Driven Strategy
Proprietary data science algorithm to forecast market rents and inform our target market and underwriting processes |
3Management & Operational Experience
Leverage proven experience managing and rehabbing multifamily properties to mitigate risks and scale operations |