Logan Square 6 Flat - V2

[Mark Kappelman]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Chicago.

6 flat in Logan that is zoned RM5, which allowed for two additional units based on lot size and current above grade square footage. After rezoned, 8 units allows for 2 STR units. These two factors were the value adds in this deal that made us pull the trigger.

What made you interested in investing in this type of deal?

Proximity to other investments and market knowledge, under-market rents, as well as ability to potentially add more units at a competitive price based on the property's zoning.

How did you find this deal and how did you negotiate it?

On the MLS. Negotiated without agent, which made us look more attractive.

How did you finance this deal?

Small balance non-recourse Freddie Mac loan (7 year term/30 year am/YM).

How did you add value to the deal?

Adding in-unit laundry, adding two units to the basement, and converting two units from LT to STR units (e.g. AirBnB).

What was the outcome?

TBD. We just bought it a month ago. But the two additional units were formally approved by the city, so we are moving in the right direction.

Lessons learned? Challenges?

See what others don't see. ALWAYS check zoning and think creatively.