North Side Multifamily Triple Play
Marc Realty Residential just closed on three value-add apartment deals on the North Side totaling $3.6M, principal David Ruttenberg (snapped with his daughter Sasha, he's on the left) tells us. And those are in very short supply these days, he adds, since lenders have sold off most of their well-located distressed product and investor demand is growing. The details: 15-unit 5715 N Kenmore in Edgewater, bought from the lender (Interra’s Brad Feldman brokered the deal); 12-unit 7601 N Sheridan in Rogers Park, a complete gut job bought after a fire and acquired from a private owner (Marcus & Millichap’s Steve Livaditis did the deal); and 10-unit 1364 N Hamlin in Humboldt Park, another one from a bank (brokered by CRER’s Nate Gautsche).
The trick to winning MRR’s signature opportunistic deals is patience and relying on asset class experience (also closing all cash and financing later). 100 offers might only yield a few winners, but if you buy right the returns are still there, David says. The Sheridan property will be 0 to 100 in terms of rent growth. On Kenmore, MRR will raise rents 55% after putting in $500k of work, and on Hamlin (above), it will bump rents 40% after $250k of deferred maintenance. MRR has a 40-unit deal and a couple notes in the hopper, David says, and he’s gearing up for a trip to Vienna next month for a wedding.
