Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it brokered the sale of 6901 S. Paxton Ave., a three-story, 50-unit building in the Jackson Park Highlands submarket of Chicago’s South Shore neighborhood, and 6949 S. Paxton Ave., a four-story, 29-unit building located on the same block. The recently renovated properties sold together for $6.65 million, or $84,172 per unit, in an off-market transaction.
Interra Director Lucas Fryman represented the confidential seller and buyer, both from coastal cities. Each is a repeat client of Fryman, who has represented the buyer in a total of four South Shore property sales. Fryman also originally represented the seller in the purchase of 6901 S. Paxton.
“Investors continue to see value in South Shore, where rents and property values have been slower to appreciate compared with nearby neighborhoods like Hyde Park, therefore offering buyers a higher potential return,” said Fryman. “The seller was able to execute their business plan for both buildings by adding value through in-unit improvements. By taking on these much-needed capital expenditures, they were able to deliver stabilized, almost fully occupied buildings that provide steady rental income and economies of scale in terms of operations.”
Together, 6901 and 6949 S. Paxton have a mix of three studios, 21 one-bedroom, 33 two-bedroom, 13 three-bedroom and nine four-bedroom apartments. The seller made significant capital improvements to 6949 S. Paxton, updating the exterior’s lintels and tuckpointing and adding new granite countertops, stainless steel appliances and refurbished hardwood floors in the units. The properties are located blocks from Lake Michigan and the Lakefront Trail, and just west of the South Shore Cultural Center and South Shore Golf Course.
Adding to the marketability of the assets was their proximity to several bus routes, including the Jeffery Jump, which provides express service to downtown Chicago, as well as buses connecting to the CTA’s Orange Line and Metra’s Electric District and South Shore lines. The buildings also are a short drive to the Dan Ryan Expressway.
