$ 2,480,000
5957 S Indiana AVE Chicago, IL 60637
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$ 2,480,000
Est. payment /mo
Active Under Contract
5957 S Indiana AVE Chicago, IL 60637
UPDATED:
10/21/2024 09:40 PM
Key Details
Property Type Multi-Family
Sub Type Multi Family 5+
Listing Status Active Under Contract
Purchase Type For Sale
MLS Listing ID 12162009
Year Built 1913
Annual Tax Amount $31,559
Tax Year 2023
Lot Dimensions 21437
Property Description
Pleased to present a multifamily property located at 5957 S. Indiana Ave in the vibrant Washington Park neighborhood of Chicago. This 31-unit building is strategically positioned to capitalize on the strong rental market in the area, offering an attractive opportunity for investors. Current Purchase Price: 2,480,000 Current Cap Rate: 7.58 Pro Forma Cap Rate (6-12 months): 11.02 Pro Forma Cap Rate (12-18 months): 12.07 Value-Add Opportunity: The property presents a compelling value-add opportunity through rent increases to market levels. Current ownership has already implemented rental increases across 35percent of the units, with an additional 23percent scheduled for increases between May and September 2024. This strategy is expected to drive the overall cash-on-cash return from the current 9.73 to 20.83 within the next 6-12 months, and up to 23.87 in the next 12-18 months. Regulatory Agreement: The property is subject to a regulatory agreement that will run until 2030, requiring an investor to rent 29 of the 31 units to tenants with incomes no more than 60percent of the area median income, at rent levels restricted to those income limits. No Major Capital Expenditures Needed: The property is well-maintained, and no major capital expenditures are required, allowing new ownership to focus on rent optimization and revenue growth. Financing Advantage: Investors can benefit from a 2-year interest-only multifamily loan, providing financial flexibility to maximize returns during the rent increase phase. Unit Mix: 3 Bedroom - 1 Bathroom: 8 Units 2 Bedroom - 1 Bathroom: 18 Units 1 Bedroom - 1 Bathroom: 5 Units The property is located in the Washington Park neighborhood, a thriving area with easy access to public transportation, parks, educational institutions, and a wide range of retail and dining options. This prime location enhances the property's attractiveness to a diverse tenant base, including small families, professionals, and singles.
Location
State IL
County Cook
Area Chi - Washington Park
Interior
Fireplace N
Building
Dwelling Type Multi Family 5+
Level or Stories 3
© 2024 Listings courtesy of MRED as distributed by MLS GRID. All Rights Reserved.
Listed by Anthony Hardy • Keller Williams ONEChicago
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