South Shore Drawing Investors, And Thus Far Leaving Gentrification Behind
“The investors I’m working with on a daily basis are interested in enhancing the housing stock,” Interra Realty Director Lucas Fryman said.
Interra just brokered the sale of the 16-story, 178-unit Shorewind Towers at 7000 South Shore Drive, and the 60-unit Shorewind Court at 6951 South Oglesby Ave. San Francisco-based Belveron Partners paid $16.8M to Chicago-based TLC Management Co., or about $80K per unit, for the 1920s-era portfolio.
“Shorewind suits our mission of investing in low- and middle-income rental housing, ensuring that current residents of neighborhoods like South Shore are not displaced by future development,” President and founding partner Paul Odland said. Unlike many of the properties Interra has sold in the past 18 months or so, which typically offer several dozen units, the Shorewind portfolio offered an investor immediate scale, and Fryman said that helped bring up to 30 potential buyers to the property, along with nine written offers from a diverse group, including locals, coastal investors like Belveron and one from Israel.
Fryman expects a sale of this size, the largest by dollar amount and unit count in the submarket since 2009, according to CoStar, may help bring similar portfolios to market, as owners previously content to hold their properties can now see how much they gain from selling. “It certainly opened some eyes,” he said.
Read article: Bisnow