The developer of an aborted condominium conversion in Logan Square sold the 26-unit rental building for nearly $6 million, cashing in on the neighborhood’s growing popularity with young professionals—and investors.
An affiliate of Skokie-based Opine Properties sold the three-story building at 3045 W. Fullerton for $5.85 million in December to a venture of Chicago-based investment firm 606 Capital, according to Cook County property records.
The Opine venture paid $3.1 million for the building in 2005, renovated the units with copper plumbing, a new roof and updated kitchens and converted them into condos. But after the condo market crashed, the owners restored the units back to apartments and rented them out.
“When we bought it, our goal wasn’t ever to keep the building,” said Naheed Amdani, member of Opine. “But after we did the conversion and put so much money into it, it didn’t make sense to sell it until we got the right price for it.”
The Logan Square property was Opine’s only apartment building in the city.
606 Capital has focused on buying property in neighborhoods like Logan Square and the Ukrainian Village because the areas have strong growth prospects, said Brad Feldman, managing partner at Chicago-based Interra Realty, who brokered the sale.
“(Logan Square) seems like it’s the next Bucktown or Wicker Park,” Feldman said. “You’re seeing restaurants and businesses continuing to flourish, so it doesn’t look like it’s stopping any time soon.”
The increasing number of stores and restaurants make it an area that attracts young, working individuals willing to pay higher rents. The building, close to the CTA Blue Line, offers a range of apartments, from one-bedroom to four-bedroom units, and 13 parking spaces.
“The new owners don’t have to do too much in terms of capital expenditures,” Feldman said. “When tenants’ leases end, they’re going to boost rents or put in a new tenant.”
606 Capital principal Nick Noyes declined to discuss his plans for the building but said his firm plans to raise rents, which range from $1,050 to $1,900 per unit. That’s 10 to 20 percent under market value, Noyes said.
606 Capital also owns property in Lincoln Park and Wicker Park. In May, the firm paid $2 million for a five-unit apartment building at 1101 N. Damen Ave. in Ukrainian Village, county records show.
-See the full story: Crain’s Chicago Business