Bronzeville Sales Analysis for 2bed/2bath Condos

Bronzeville Chicago – Chart of Average Selling Prices

bronzeville-condo_chart

Bronzeville Condos Foreclosures Short Sales condos

Bronzeville Condos Foreclosures Short Sales condos

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South Shore Chicago – Rent Price Trend

South Shore Chicago - Rent Price Trend

South Shore Chicago – Rent Price Trend

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Chicago Investment Properties

773property.com

773property.com

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Cap Rates by Neighborhood for Chicago Multi-Family Properties

Chicago Multi-Family Income Property

Chicago Multi-Family Income Property



Hello to all my blog readers out there.
I know it has been a while, but I am back with some valuable information!
I analyzed 2 years of sales transactions for Chicago
Multi-Family apartment buildings.
I wanted to find out the average cap rates by neighborhood.
This is one of my most popular reports.

This report is based on MLS data for the period of
01/01/2015 through 12/31/2016.
The MLS system is used to list and sell properties that are brokered
by a licensed real estate agent.
So this analysis does not include properties that were sold “off market”.
But the MLS includes about 90% of all sales transactions.

As a refresher, let’s talk about cap rates right quick.
According to Investopedia, Cap Rate is defined as follows:

“The capitalization rate is the rate of return on a real estate
investment property based on the income that the property is
expected to generate. The capitalization rate is used to estimate
the investor’s potential return on his or her investment.

The capitalization rate of an investment may be calculated by dividing
the investment’s net operating income (NOI) by the current market value
of the property, where NOI is the annual return on the property minus all
operating costs. The formula for calculating the capitalization rate can
be expressed in the following way:

Capitalization Rate = Net Operating Income / Current Market Value

For more info on cap rates, please visit:
http://www.investopedia.com/terms/c/capitalizationrate.asp

To derive cap rates for my report, I looked at the stated gross income for each property.
I then assumed the expenses would be 50% of the stated gross income.
This is known as the 50% rule.
It gives you a quick way to analyze properties at a high level.
So this analysis assumes that for multi-family properties your expenses
will be about half of your revenue.
On average, this is about right. Once you have your net income, you divide
it by the selling price to get the Cap Rate.
So if a property has a annual net income of $100,000 and it sold for 1 million dollars,
it has a cap rate of 10.
Note: If a property had a stated gross income of $0, it was not included in this analysis.

Generally speaking, neighborhoods with high appreciation rates have lower cap rates.
And neighborhoods with high cap rates will usually have low or flat appreciation rates.
These two metrics are inversely related and I think this report highlights that relationship.

If you are thinking about buying or selling an investment property in Chicago,
please let me know! You can send me a note: mark@markkillion.com

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

The report is shown below:

Cap Rates, by neighborhood, for Chicago Multi-Family Properties 2017

Cap Rates, by neighborhood, for Chicago Multi-Family Properties 2017

Posted in Chicago neighborhoods, Chicago Real Estate, commercial real estate, Home Values, Investment properties, Investment Property, multi-family, multi-unit, real estate analysis | Tagged , , , , , , , , | Comments Off

Chicago Average Rent prices by neighborhood and bedroom count – 2016

Hello to all my blog readers out there.
I just completed my year end analysis of Chicago rent prices.
This is my most popular type of analysis with investors.
This report was compiled exclusively for www.773property.com

This analysis is based on data from the MLS.
2016 was another strong year for Chicago rentals.
I analyzed over 18,000 rental transactions!
The report is shown below.

This report shows average rent prices by neighborhood and bedroom count.
The number in parentheses shows the count of units for that cell.
So if you see “$1000 (22)”, it means the average rent was $1,000 and 22 units were rented.

This data is quite interesting.
The average 3 bedroom in the Loop neighborhood is $4,669.
While the average 2 bedroom in the Loop is $2,735.
So if you give up 1 bedroom, you can save almost 2 grand per month.
Another thing to take note of: Loop rents are sky high!

Hopefully you find this information useful.
If you have any questions about real estate, please let me know!

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

Chicago Average Rent Prices by neighborhood and bedroom count - 2016

Chicago Average Rent Prices by neighborhood and bedroom count – 2016

Chicago Average Rent Prices by neighborhood and bedroom count - 2016

Chicago Average Rent Prices by neighborhood and bedroom count – 2016

Chicago Average Rent Prices by neighborhood and bedroom count - 2016

Chicago Average Rent Prices by neighborhood and bedroom count – 2016

Chicago Average Rent Prices by neighborhood and bedroom count - 2016

Chicago Average Rent Prices by neighborhood and bedroom count – 2016

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Jackson Park Highlands – Hidden Gem on Chicago’s South Side

Jackson Park Highlands - Hidden Gem in Chicago

Jackson Park Highlands – Hidden Gem in Chicago

Jackson Park Highlands is a hidden gem on the south side of Chicago.
It sits inside of the larger south shore neighborhood.
The homes in this small neighborhood are absolutely amazing!



Jackson Park Highlands Block

A Jackson Park Highlands block in early Autumn



The Jackson Park Highlands District is a historic district
in the South Shore community area of Chicago, Illinois.
The district was built in 1905 by various architects.
It was designated a Chicago Landmark on October 25, 1989.

It is often regarded as one of three South Side
upper-middle to upper-class neighborhoods, the other two
being Hyde Park to the direct north and Beverly, a little
ways southwest.

Boundaries

The neighborhood is roughly bounded by East 67th Street to
the north, East 71st Street to the south, Cregier
(Named for former Chicago mayor) to the west and Euclid
(named for the famed mathematician) to the east.

Directly north of the neighborhood lies the 18-hole Jackson
Park Golf Course, a part of the Chicago Park District’s
Jackson Park, the third largest park in the city and home
of the 1893 Columbian World Exposition.

To the south lies the former Illinois Central Railroad tracks,
now operated by Metra rail’s Electric Line of trains. To the
east lies Jeffrey Boulevard and across that is the larger
neighborhood of South Shore.

HISTORY

The neighborhood was commissioned in the early 20th century.
Its initial purpose was as a collection of model homes that
would overlook the prized Jackson Park, which had hosted the
World’s Fair less than a decade prior. The neighborhood
featured (and is still present) some of the most innovative
concepts of the time, including large front yard setbacks,
50-foot lot widths, underground utilities, and no alleys.

When Chicago annexed Hyde Park just in time for the 1890 census
(to beat out Philadelphia as the second largest metro-area in
the nation), the Highlands were left under governorship of the
South Shore area.

At the time of the Second World War, the neighborhood saw huge
loss in residence and a destruction of the area was suggested.
With the arrival of the 1970s, the neighborhood again began
to rise as a major thoroughfare of South Side luxury.

It was designated a Chicago Landmark on October 25, 1989.
Houses now range from the $200,00 mark upwards to about $1.5 million.

REAL ESTATE VALUES IN JACKSON PARK HIGHLANDS (CHICAGO)

As of January 22, 2017 there is 1 single family homes on the market
in the Jackson Park Highlands neighborhood. The asking price
is $499,900. The average asking price per square foot is about $106.

JACKSON PARK HIGHLANDS MAP

Jackson Park Highlands Map

Jackson Park Highlands - Chicago - Map

If you have any questions regarding real estate in the Jackson Park Highlands,
please let me know!

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

773property.com Logo

Some of the above information was taken from
the Wikipedia page on Jackson Park Highlands.
For the original Wikipedia article, visit:

http://en.wikipedia.org/wiki/Jackson_Park_Highlands_District

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Bronzeville Real Estate Sales Analysis – Chicago 2016

Bronzeville Real Estate Sales Analysis - Chicago 2016

Bronzeville Real Estate Sales Analysis – Chicago 2016

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

773property.com Logo

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South Shore Chicago – Real Estate Analysis

South Shore Chicago - Real Estate Analysis - 2016

South Shore Chicago – Real Estate Analysis – 2016



Here is an analysis of the South Shore neighborhood in Chicago.
As you can see, the South Shore market is doing really well compared to the previous year.
Total Sales Volume is up by about 27%!
I expect this trend to continue in 2017.
If you have any questions about South Shore Real Estate, please let me know!

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

773property.com Logo

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World Class Golf Course coming to South Shore Chicago

World Class Golf Course coming to South Shore Chicago

World Class Golf Course coming to South Shore Chicago

The news just keeps getting better for the South Shore Chicago neighborhood.
Tiger Woods has agreed to design a golf mecca on the south side of Chicago.
The goal is to have professional televised golf tournaments played there.
That is a lofty goal indeed!

I read that President Obama called Tiger Woods and asked him to design
this new course as a personal favor.
I am sure Mayor Rahm Emanuel made some moves behind the scenes as well.
(For instance, there was no public vote or input on the matter)

Tiger Woods and President Obama Phone Call

Tiger Woods and President Obama discussing the South Shore Golf course.

It sounds like it will extend from Jackson Park near 67th and Stony Island
all the way to the South Shore Cultural Center on 71st Street and South Shore drive.
This is a very beautiful stretch of real estate. It has stunning views
of the Lake to the east and the Chicago skyline to the north.

The total project is expected to cost around $30 Million dollars!
80% of that is expected to come from private investors.
The project will start in mid 2017 and it will take about 3 years to complete.
Combine the new golf course with the new Presidential Library, and I think
we are about to see a chain reaction of commercial investment in South Shore Chicago.

This is really great news for the South side of Chicago and the city in general.
It will definitely have a positive impact on local real estate values.
I think South Shore is a great place for real estate investments.

Several real estate investors have asked me about the South Shore neighborhood recently.
If you are thinking about picking up an investment property or two,
South Shore should definitely be on your radar.

Prices are still reasonable and the long term outlook is great.
If you have any questions about buying South Shore Chicago real estate,
please let me know!

South Shore Real Estate Listings

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

773property.com Logo

Posted in Chicago Real Estate, Golf, Investment properties, multi-family, multi-unit, South Shore | Tagged , , , , , | Comments Off

South Shore Cap Rates – Chicago Multi-Family Apartment Buildings

South Shore Chicago Cap Rates

South Shore Chicago Cap Rates

I just did a quick analysis of closed transactions for South Shore Chicago.
I focused on Multi-Family Apartment Buildings only.
This was for sales that took place in 2016.
About 20 transactions closed on the MLS this year.
The estimated median Cap Rate in South Shore was 10.9%

I estimated the Cap Rate by looking at the Gross Income.
I then assumed 50% expenses to get the Net Income.
I like doing this because some sellers may play with the expenses
to make them look lower than they really are.
Many feel that the 50% rule is a pretty good estimate of expenses.
Then I divided the estimated Net Income by the Selling price.
So I arrived at a median Cap Rate was 10.9%
So this should give you a good idea of where Cap Rates are in the
South Shore neighborhood.
If you have any questions about buying or selling investment
properties in South Shore, you can send me a text (or call)
Mark Killion 773-354-6693.
You can also send me an email: mark@markkillion.com

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

773property.com Logo

Posted in cap rates, Chicago Real Estate, commercial real estate, multi-family, multi-unit, South Shore | Tagged , , , , , , , , , , | Comments Off