Chicago conversion 2 DU to 5 DU with zoning change

[Chi Zhang]

Investment Info:

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

Purchase price: $400,000
Cash invested: $450,000

Orig a mix-used 2 unit in B1-2 zoning, a zoning amendment was obtained to up zone to B2-3 within TOD district, which allowed for total of 5 units with increased total bldg sqft. Zoning amendment took about 1 year. Rehab/addition took another year. Initial purchase $400k, rehab cost $850k, current appraised value $1.5Mil. Monthly gross rent $10k.

How did you finance this deal?

Cash orig purchase. Commercial 70% LTV loan on rehab cost.

How did you add value to the deal?

By obtaining the zoning change, with the combination of the location being in the Chicago TOD district, the unit count was increased from 2 to 5, and total new rentable sqft of 6000 sqft, with zero commercial component.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Blueleaf Lending, Tyler Knudsvig

[Samuel Pavlovcik]

@Brya Freeland

You may be able to get some old plans through the Freedom of Information Act. You can email dobfoia@cityofchicago . com with a request for old drawings they may have record of for the property, all tho you will need the Owner's permission to do so.

When obtaining blueprints for a property, one must provide the following information with their request: Proof of Ownership; For Non-Owner:1) Letter of authorization, signed by the owner. And it must be notarized. For an Owner: (only one of the following will be accepted: 1) Deed 2) Title 3) Water bill. Plans are exempt from FOIA under 5ILCS 140/7 (10(k).