Breneman Capital Calibrates Chicago Portfolio With Two Late-Year Deals
Transactions Less Than a Month Apart Focus Company's Holdings in Part of City's Most Expensive Area
Breneman Capital, a Chicago-based multifamily investment firm, is finishing 2023 with two deals valued at more than $21.5 million that focus its portfolio on one of its hometown's most expensive areas.
The larger of the two transactions was the purchase of 33 S. Ashland Ave. in Chicago's West Loop neighborhood for $17.95 million. The property, known as Ashland Place, was built in 2018 and totals 47 units of mostly two-bedroom, one-bath apartments that average 1,205 square feet. The deal closed on Nov. 20.
Breneman acquired the property from Michigan Avenue Real Estate Group, an investment firm backed by Jerry Reinsdorf, owner of the NBA'.s Chicago Bulls and the MLB 's Chicago White Sox.
"This acquisition marks exactly three years to the date since we closed our last deal in Chicago," Evan Dillon, a Breneman vice president, said in a statement. The company said the building will be managed by Dwelle Properties, a property management company founded by Breneman Capital's founder, Drew Breneman, and its director of investor relations, Samuel Meyer.
A few weeks later, Breneman closed on a second deal with the sale of an eight-unit building at 3332 W. Palmer St. in Chicago's Palmer Square neighborhood. Breneman purchased the building from Blue Owl in October 2019 for $2.65 million and immediately went to work on deferred maintenance, installing new water heaters, and interior renovations, the company said in a statement. The sale closed on Dec. 14 for $3.575 million.
The Palmer Street building is one of 22 multifamily properties Breneman has purchased since 2013 and marks the seventh sale from their Chicago portfolio, the company said.
Breneman pinned its rationale for purchasing the Ashland Avenue property on resiliency in Chicago's multifamily market. The demand is so great that some West Loop apartments come with a significant premium in asking rents relative to Palmer Square. The average price in downtown Chicago, which includes the West Loop, is $2,672 per month, the most expensive in the market, according to CoStar data.
Breneman and Michigan Avenue Real Estate Group are working on another deal in the area for the 52-unit Adams Laflin Place at 128 S. Laflin St., according to media reports. Also in the West Loop, Breneman in 2020 completed a $32.8 million deal for a 72-unit complex at 1247-1249 W. Madison St.