Chicago-based mid-market multifamily brokerage firm Kiser Group recently closed a $9 million deal for The Maynard in Chicago’s Uptown neighborhood. Becovic Management purchased the 74-unit property at 4875 N. Magnolia Avenue from CLK Properties. The transaction was brokered by Kiser Group’s Broker Rick Ofman in partnership with principal and managing broker Lee Kiser.
The majority of the units in The Maynard are micro-unit studios, some as small as 218 square feet. Originally built in 1925, Cedar Street Companies gut renovated the property in 2014 and sold it as part of a six-asset portfolio to CLK Properties in 2016.
“While the majority of investment in Uptown has typically been value add acquisitions, Becovic’s purchase of The Maynard demonstrates that acquiring stabilized assets is also lucrative,” said Ofman. “Uptown has all the public transportation and lifestyle amenities attractive to a micro-unit tenant, especially for a property like The Maynard that’s also close to Uptown’s entertainment district. Despite a transaction price of nearly $400 per net rentable square foot, the investment cap rate is higher than many other areas of the city, further demonstrating the solid economics of investment in Uptown.”
The corridor-style building consists of 74 units, 16 of which are subsidized through the Chicago Low Income Housing Trust Fund. The unit mix consists of two-bedroom, one and a half-bathroom duplex units; two-bedroom, one-bathroom units; one-bedroom, one-bathroom duplex units; one bedroom, one-bathroom units plus den; one-bedroom, one-bathroom units and studio floorplans. The building offers a workout center and free Wi-Fi for residents.
“The buyer, Becovic Management, is a long-term owner that believes in Uptown’s continued growth and improvement,” said Kiser. “Micro-units are a trend that continues to prove strong in Chicago’s neighborhoods.”