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Senior Director 414.662.2472 richard.evans@berkadia.com BREA #475.127322
Richard Evans
Senior Managing Director 312.407.6711 pete.evans@berkadia.com BREA #481.012004
Pete Evans
Managing Director 312.845.8572 ralph.depasquale@berkadia.com BREA #471.011898
Ralph DePasquale
Investment Team
MORTGAGE BANKING
125 South Wacker Drive, Suite 400 Chicago, IL 60606
Chicago Office
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Investment Highlights
Midpointe Apartments is a well-positioned 423-unit apartment community located just 14 miles from downtown Chicago.
Owned by Bridge Workforce Housing Fund, the asset is true “luxury” workforce housing. This offering gives an investor the unique opportunity to acquire a well-located apartment community that offers both a Chicago address (to take advantage of residency requirements — see below), as well as lifting the current restrictions that are self-imposed under the current structure.
Midpointe has received significant capital in recent years, which has resulted in the property defying its 1973 construction. The property can also be purchased at well below today’s replacement cost and features an excellent unit mix of studio, one-, and two-bedroom floor plans. The community offers a proven value-add component that a new owner can continue through further interior unit upgrades (361 units already completed to varying degrees over the past 10 years), which have shown to generate significant return on investment.
A new owner can concentrate on adding value via improvements; the property has undergone significant upgrades since 2014 including a new leasing center and upgraded fitness room. Here are a few reasons we feel that the offering of Midpointe Apartments creates an excellent long-term opportunity.
4050 W. 115th Street Chicago, IL 60655
Midpointe Apartments
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Value-Add Opportunity
—— Chicago Address, Suburban Feel
—— 423 Units
Associate Director 312.845.8512 dominick.ens@berkadia.com
Dominick Ens
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Senior Managing Director 303.689.8317 chris.ellis@berkadia.com
Chris Ellis
Opportunity to Add Value
Originally developed in 1973, Midpointe has received substantial renovation from both the previous and current owner. Current ownership has invested over $4.6 million in capital improvements since acquiring the property in 2018 and continues to make further improvements. This is in addition to over $2.5 million that the previous owner had added to the property from 2014 to 2018. Over the last 10 years, the property has received more than $7 million in capital improvements.
Continued Unit Upgrades
The current owner began a very successful renovation program of unit interiors over the last several years, spending over $2.1 million. This included substantial upgrades to the kitchen cabinets, countertops, appliances, flooring, and lighting. These upgrades dramatically modernize the units, and they have been able to achieve much higher rents than the Classic unit. To date, they have completed approximately 167 units (40%) with remarkable success and feel there is more than ample room in the market to complete more at even higher rent levels. In addition, the previous owner had begun a more modest interior upgrade program and had also completed 194 units (46%).
Chicago Address with Suburban LocatioN
As noted earlier, the city of Chicago has a residency requirement for its employees; if you are a teacher, firefighter, police office, government worker, etc., you are required to live within the city limits. This has sometimes posed a problem for those employees who want a less urban location. Midpointe’s location offers the Chicago address with a more suburban location and already caters to many of these residents. This will only increase the potential for Midpointe as rents continue to climb in other parts of the city. The current tenant base at Midpointe is made up of roughly 35-40% city of Chicago employees including police, teachers, professors, firefighters and EMTs.
Location near Employment
Located along 112th Street and just west of Pulaski Road (major north-south roadway through Cook County), the property is in the southwest portion of Chicago. This location is within walking distance or only minutes away from major employers, retail centers, train lines, major highways, and schools.
STROng Demographics
Midpointe is in the established, near southwest portion of Chicago and close to the other desirable cities such as Oak Lawn. The property is also adjacent to Marist, the premier private high school in the area. Here are a few highlights (within a three-to-five mile radius):
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Amenities
Air Conditioning / Heating
Renovated Units
Faux Wood-Plank Floors
Stainless Steel or Black Appliances (Most Units)
Large Closets
Eat-In Kitchen
Dishwasher
Ceiling Fans
Microwave
UNIT AMENITIES:
Mobile Phone Controlled Access
Eight Renovated Laundry Facilities with Wi-Fi Equipment
Business Center with Wi-Fi Lounge
Coffee Bar
Elevators
Olympic-Size Swimming Pool with Huge Sundeck
Newly Renovated Fitness Center
Resident Activity Center
Fire Pit with Seating
Multiple Gas Grilling Areas
Dog Park
New Playground
Attractive Mature Landscaping
Non-Profit Resident Program
COMMUNITY AMENITIES:
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Managing Director 786.646.2580 brad.williamson@berkadia.com
Brad Williamson
Director 312.845.8590 keith.milliken@berkadia.com
Keith Milliken
423
UNITS
1973
Built
2014-2020
Substantially Renovated
751
Avg SF
4050 W. 115th Street, Chicago, IL 60655
Population:
396,000 within five miles
Employment: 64% White Collar
Median Household Income: $80,546 (Average: $99,574)
Median Household Income for 25-44 Years Old:
$92,249 (Average $105,669)
Median House Pricing:
$290,672 (Average: $301,229)
Pricing well below Replacement Cost
While Midpointe is being offered without a formal asking price, it is expected to trade at significantly below estimated replacement cost. These costs, in suburban Chicago today, would be well over $300,000 per unit range for a similar complex with elevators and amenities. In addition, we also feel that these sale prices will be significantly more attractive than a number of recent sales of similar properties in the immediate area.
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833 East Michigan Avenue, Suite 950 Milwaukee WI 53202
Milwaukee Office
4050 W. 115th Street, Chicago, IL, 60655