Penn Real Estate is pleased to announce the sale of 837 E 86th St. This is a 12 unit multifamily building located in Chicago’s Chatham neighborhood. It was fully stabilized at the time of the sale and the buyer was able to purchase it on an all cash basis.
Avoiding the requirements of a traditional lender, this deal was able to close without an appraisal. In so doing, Penn was able to attain the greatest per unit price for property in the neighborhood since the market downturn of 4 years ago.
This is from GlobeSt and is a very promising synopsis of the market and where its heading.
CHICAGO-Though the two major fundamentals, jobs and housing, are still shaky, there’s so much capital held back today that the next five years should see massive investment in the stability of commercial real estate, according to a joint report. The groups Real Estate Research Corp., Deloitte and National Association of Realtors put together the Expectations & Market Realities in Real Estate 2012 report.
Property has shown better returns in the long run than other investment vehicles such as stocks, and the product markets of office, industrial, retail and hospitality should inch upward this year in occupancy and lending, according to the report. Kenneth Riggs Jr., chairman and president of RERC, tells GlobeSt.com that uncertainty in the US political arena and the turmoil overseas in Europe and the Middle East should allow CRE to shine as a more stable investment.
“I think in the next couple of years we’re going to see the greatest capital infusion we’ve ever seen in a generation,” Riggs says. “We believe that commercial real estate is the new foundation to investment portfolios as we go back to the basics of investing.” He says there’s a number of CRE companies such as Clarion and Jones Lang LaSalle that are launching private REITs to literally capitalize on the massive amount of money sitting on the sidelines.
Much like the lack of development in the United States has led to absorption increasing, even while jobs are still way down, the lack of spending by companies and consumers is setting up this expectation of growth in the next few years. In 2010, for example, the total US economy as at $14.5 trillion, about equal to China, Japan and Germany combined – and that’s following the recession.
While fundamentals are keeping landlords from increasing rents in all property types except apartments, the office, retail and industrial markets are expected to shrink, even as the economy begins to expand. Also, GDP is about the same as it was in December 2007, even though there’s millions less jobs now.
Riggs says those figures, among other expectations, are the reason to believe that growth is on its way. “I think we’re going to come out of this a lot stronger than we were before,” he says.
Penn Real Estate recently took the assignment to market for lease a 10,000 sf office building located at 9933 S Western Ave in Chicago’s Beverly neighborhood. This property is just over half way leased to medical and professional tenants.
The remaining vacancies vary from 750-1,500 sf and are adaptable to many uses. Several have plumbing and kitchenettes set up for the new tenant’s use.
Penn Real Estate recently sold a former Blockbuster Video location in the Beverly neighborhood of Chicago. Representing a local business with several locations throughout Chicago and the suburbs; Penn negotiated for the purchase of this 5,000 sf building located at 10426 S Western Ave.
The seller was a national asset management firm represented by Mid-America Real Estate.
Penn Real Estate recently closed on a former Taco Bell located in Chicago’s Beverly neighborhood. The property had been vacant for a number of years and will be torn down to make way for a new commercial development. Penn represented both parties in the transaction. The seller was a national restaurant franchisee and the buyer is a local developer.
Stanley K. Lacy Executive Leadership Series Class XXXVI
Catherine Esselman, Vice President at Penn Real Estate, will have the opportunity to advance her community leadership interests as a member of Class XXXVI of the Stanley K. Lacy Executive Leadership Series.
Esselman is one of 25 young professionals to be accepted into the series, a highly competitive program that seeks to expand the ranks of community leaders by teaching and motivating members to address the needs of central Indiana.
“I am honored to have been chosen to participate in SKL, which has helped many of central Indiana’s most prominent leaders become more effective community leaders,” Esselman said.
Class members are chosen because of their significant community involvement and professional achievement; their demonstrated interest in community issues; a record of participation and achievement in voluntary community activities; and their willingness to expand their leadership role in the community.
Teresa Lubbers, Commissioner, Indiana Commission for Higher Education, has been named Moderator for Class XXXVI. To ensure that the series is timely and topical, each class’s moderator identifies aspects of broad economic and societal issues that are specific to central Indiana for the class to study.
Class XXXVI will meet monthly from September through June. Participants will interact with local leaders, professional experts and community decision makers to discuss issues such as the region’s quality of life, education and economic development.
About the Stanley K. Lacy Executive Leadership Series: Formed in 1976, SKL informs and motivates emerging leaders and raises their awareness of community issues and sense of community trusteeship through seminars, tours, reading and interaction with experts, leaders and decision makers. The series is named in honor of Stanley K. Lacy, an Indianapolis banker and active participant in civic projects, who died in a tragic automobile accident in 1973 at the age of 27.
About the Greater Indianapolis Chamber of Commerce: Founded in 1890 by Colonel Eli Lilly and a group of Indianapolis business leaders, the Greater Indianapolis Chamber of Commerce is the voice of the central Indiana business community. Today, with a membership of more than 4,000 businesses, the Indianapolis Chamber is still a voice of progress and improvement, bringing together businesses for a thriving community. For more information on the Chamber, visit indychamber.com.
Penn Real Estate has recently been retained by seperate ownership groups to market and sell 3 different multifamily properties. Highlights of each include:
1. 2244 W 111th St- Chicago, IL- This is a fully occupied 8 unit apartment building in
the Beverly neighborhood. Rarely do multifamily properties become available in this market, and when they do, pricing is usually not in line with the market. However, the new owner of this property will be able to enjoy a return on equity of over 11%.
2. 7256 Artesian- Chicago, IL- This fully occupied 12 unit building in the Chicago 
Lawn neighborhood has been in the hands of the same owner for a number of years. Most of the mechanicals have been recently updated including boiler, roof, porch, and hot water heater.
Again, this owner has realistic expectation of the market and is offering this property for a price that allows the new investor to enjoy double digit annual returns on their initial equity investment with plenty of room for rent increases.
3. 837-843 E 86th St- Chicago, IL- This fully occupied 12 unit apartment building is
located in Chicago’s Chatham neighborhood. Boasting 4 one bedroom units and 8 two bedroom units, this property has tremendous rents and is in excellent condition. Most units have been renovated with very nice finishes. Additionally, the asking price provides for a great return for the new investor.
1621 N. Richmond- This is a 5 unit apartment building that was sold as a short sale. There was tremendous interest in the property and the buyer and seller were able able to relatively quickly agree on a sale price.
However, tremendous difficulty in negotiating with the existing lender caused the transaction to take longer than expected. Working with all parties involved Penn was able to keep the deal together and eventually close the transaction.
For further information, please contact Joe Esselman.
Urban Indy (www.urbanindy.com) is a blog that I like to read. The contributing writers write about topics that I’m passionate about (mass transit, Indianapolis, Fountain Square, and commercial real estate). Today’s post is all about a client that I had the pleasure of representing in their recent relocation. This move was necessary for them to continue to grow their business. Outgrowing your space is a good problem to have! I know their loyal customers will love the new space.
Penn Real Estate recently represented Deerfield Financial in the relocation of their Park Ridge office. Occupying approx. 1,250 sf, they moved their offices to 1480 Renaissance Dr in Park Ridge, Illinois.
Penn Real Estate recently represented Boogie Burger Restaurant in the relocation of their restaurant at to 1904 Broad Ripple Ave. The new restaurant is a free standing location that will more than doubles their existing location and provides enough space for an outside patio and free parking.
