Kiser Group Brokers Andy Friedman, Jake Parker and Danny Logarakis Facilitate $16.8M Sale of 110-Unit Property in Rogers Park

Kiser Group is pleased to announce the sale of a 110-unit multifamily property located at 1340 W Morse in Chicago’s Rogers Park neighborhood. The property was sold for $16.8 million by Kiser Group brokers Andy Friedman, Jake Parker and Danny Logarakis.

Bender Companies, a Chicago-based multifamily investment firm, partnered with Eastham Capital, a national real estate investment firm, to acquire the property. 1340 W Morse boasts an impressive 97% occupancy rate and is in turnkey condition. A key factor in the transaction was the assumption of attractive agency debt, providing long-term financial benefits to the buyer.

Key Highlights of the Sale:

• Agency Debt Assumption: Bender Companies benefited from highly favorable debt terms.
• Turnkey Condition: The property required no significant renovations, making it an ideal investment for a buyer seeking immediate cash flow.
• Strong Occupancy: With a 97% occupancy rate, the property offers stable and predictable income.
• Rent Growth: Recent trade-out of leases have demonstrated continued rent growth in the submarket.
• Desirable Location: Located in the appreciating Rogers Park neighborhood, the property is well positioned along the growing Morse corridor and is adjacent to the Morse Red Line Station.

The property hit the market on April 18, 2024, and closed in under five months. “Rogers Park continues to experience steady appreciation, with increasing demand for stabilized assets such as 1340 W Morse,” said Danny Logarakis, Senior Director. “This sale highlights the rarity of acquiring a large, fully stabilized, turnkey property in an appreciating North Side neighborhood.

“1340 W Morse is actually two North-South adjacent and enclosed buildings, run as one property,” said Andy Friedman, Senior Director at Kiser Group. “This uncommon configuration enabled the seller to create amenity spaces including a workout room, laundry facility, and a firepit area while retaining ample parking.  It’s a really unique set-up and gives the property an advantage in attracting and retaining tenants.”

Bender Companies was drawn to the property’s strong financial performance and the favorable debt assumption. The scale of the property further enabled Bender Companies to make their first acquisition in the city, a market outside of their usual suburban focus but in close proximity to their home office in Chicago.

“Bender Companies saw the value of having attractive low interest rate assumable debt,” said Jake Parker, Senior Director at Kiser Group. “The debt in conjunction with the high occupancy and turn-key condition allows the buyer to walk into immediate substantial cash-on-cash returns with room for growth over the remainder of the loan.”

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