Acquisition Date: September 2019
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Status: Active
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Background
This is a multifamily apartment building in Chicago’s West Town neighborhood, home of Chicago’s contemporary art galleries and many acclaimed entertainment and dining options. We acquired the property directly from the owner. When we purchased the property there were 4 apartments and a vacant bar on the first floor. The zoning had changed to residential and the seller was not able to finance the construction required to create residential units out of the raw bar space.
This is a multifamily apartment building in Chicago’s West Town neighborhood, home of Chicago’s contemporary art galleries and many acclaimed entertainment and dining options. We acquired the property directly from the owner. When we purchased the property there were 4 apartments and a vacant bar on the first floor. The zoning had changed to residential and the seller was not able to finance the construction required to create residential units out of the raw bar space.
ESRE Approach
To finance the acquisition and construction we got a short-term construction loan. We converted the bar into two brand new residential units.
2 years after the acquisition we executed a cash-out refinance of the property that returned 120% of our capital investment.
To finance the acquisition and construction we got a short-term construction loan. We converted the bar into two brand new residential units.
2 years after the acquisition we executed a cash-out refinance of the property that returned 120% of our capital investment.
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 |