By Aaron Sklar, Kiser Group
Auburn Gresham is located on the far south side of Chicago, 13 miles from downtown and has quietly been gaining momentum with the multifamily investment community. With 75th Street to its north, the neighborhood spans from the train tracks east of Halsted Street to 89th Street to the south and Beverly Boulevard to the west. The neighborhood features vintage apartment buildings, historic buildings and bustling corridors such as 79th Street, South Racine Avenue and 87th Street.
As the south side continues to see increased investor interest, Auburn Gresham could be the next South Shore in terms of increased sale velocity, property appreciation and neighborhood development.
What does the average apartment look like in Auburn Gresham?
The apartment stock in the neighborhood is vintage and mostly comprised of dated one and two-bedroom apartment units. These units tend to rent anywhere from $600 per month for a one-bedroom unit, and roughly $800 per month for a similar two-bedroom unit. On the other hand, renovated, high-end two-bedroom apartment units range from $1,100 to $1,200 per month with $1,100 being the average rent. Although there is an incredibly high demand for renovated, high-end rental apartments, the current and existing supply of these assets are still low.
What makes Auburn Gresham an appealing area to invest?
For starters, the area has long-term tenants. A handful of investors have already bet on this neighborhood, and there is a supply of recently renovated apartment stock available. The rents being achieved with the renovated units has many people doing a double take. Residents are easily connected to the city via CTA bus routes and Metra stops. Numerous grocery stores, restaurants and retailers are located along 79th Street, South Racine Avenue and 87th Street. As investor interest picks up on the south side and some neighborhoods are pricing investors out, Auburn Gresham is the next spot.
If you have any questions about the available inventory in this area, please reach out.