Kiser Group’s Birk | Sklar Team recently closed a transaction worth $8.65M for three buildings located at 6625 S. Drexel, 4901 S. Michigan and 4725 S. Michigan in the East Woodlawn and Bronzeville neighborhoods. The Birk | Sklar team has observed a significant increase in demand and popularity in these areas due to their proximity to Hyde Park and the development of the Obama Presidential Library.
“This was an exceptional opportunity to acquire some of the larger buildings in the area,” said Sklar. “Buildings of this size are extremely rare, and the current rents were approximately 30% below market rents. Additionally, the buyers have the ability to increase rents while the neighborhood continues to appreciate rapidly.”
All three buildings – 6625 S. Drexel (22 units), 4901 S. Michigan (20 units), and 4725 S. Michigan (28 units) – boast a desirable unit mix. They feature spacious open floor plans, updated kitchens and bathrooms throughout, and some units with hardwood flooring. Furthermore, 4725 S. Michigan has a gated parking lot along with an updated elevator, which provides tenants with an extra measure of security and a sought-after amenity.
According to Sklar, market trends indicate high rental growth and appreciation due to new developments, such as the Bronzeville Lakefront Mega Development, worth $3.8 billion, and the Obama Library. “This is also an incredibly quiet and residential area, with existing home sales increasing and prices on new construction continuing to break new records,” said Sklar.
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