10539 S Church St
Chicago, IL 60643
Specialty Property For Sale · 475,000 SF

This 429 Single Family Home Portfolio is located throughout Chicago, IL which is the 3rd largest market in the United States with an economic output of $660.40 billion in 2015. According to Swiss Bank UBS, Chicago home prices are the most undervalued in the nation. Chicago has a strong rental market with a market vacancy below 4%. Additionally, home prices have risen 9% and home sales have increased 4.8% (Chicago Tribune) in 2016. The portfolio consists primarily of 3 and 4 bedroom homes in desirable working class neighborhoods. The average property size is 1,094 square feet including basements with an average rent of $1,351. At a purchase price of $46.1 MM or $107K a home and $101.81 per square foot the portfolio offers an opportunity to purchase a concentrated set of homes under retail value and below replacement cost. The homes generate strong, consistent cash flow and are priced above a 14% gross yield. The properties are located within a tight perimeter of 30 miles which offers potential economies of scale and ease of management (Current Management company willing to stay on at a 5% management fee). There is significant upside through enacting rent increases to levels established by HUD’s Fair Market Rent Documentation System for 2016.