Appraisal came back less after completing a $125k addition

[Aaron Frances]

Need some advice on a buy and hold I have. Are there any other way's I can document my rehab/addition to add more value to my appraisal for a cash out refi? Mortgage lender said there just aren't any comps in the .7 mile area to justify a higher value to what it is I did. I'm in Chicago. I can't buy my property any place else for anywhere under $650 but those are in different neighborhoods.

Several years ago I bought a 2 flat apartment building at 2500sqft for $220k. Used cash out of pocket for gut renovations of the 2 units which then appraised for $425k 3 years ago. I did a cashout then, further spending $125K to rezone and add an additional legal 1000 sqft apartment in the garden. My realtor said I likely have added $100k in additional value so my assumption was the value should appraise for $525k or greater. 

3 years later, after finishing the project I'm sitting on a 3500sqft property fully gut renovated that is only appraising for $423k. I'm scratching my head here. Cashflow is there, but I was truly banking on a 2nd Brrrr to recoup some of the renovation cost spent out of pocket for the last 7 years I've owned it. Super bummed here. Thanks everyone!