Ashland

5019-5021 N Ashland Ave, Chicago, IL 60640
Strategy: Add Value, Cash Out Refinance
Status: Current
Purchase Price: $1,450,000
Acquisition Date: 6/28/2017
Units: 7 Units
Off-Market, Repeat Broker

Ashland is a 7-unit multifamily property around the corner from Clark Street in Chicago’s Ravenswood Neighborhood, which is full of entertainment and dining options.

The owners wanted to sell the property with minimal hassle, and Breneman Capital was the only buyer sent this property given our stellar reputation. We worked quickly to get the property under contract and address the seller’s timing and occupancy needs.

When Breneman Capital acquired the property, it was a 6-unit building that had been partially renovated but was extremely outdated. The building had the potential to duplex the first-floor unit or add a basement unit with the city’s approval.

During the acquisition process, we applied for a zoning change to add a 7th unit. Shortly after closing our zoning change was secured, and we added the 7th unit.

Renovations were difficult and we needed to replace a sewer stack running through the bathrooms of occupied units while tenants remained in their units. We raised the rental income 38% in the first year of ownership, reduced property taxes, and switched vendors for trash/recycling to reduce expenses.

We distributed 107% of the cash invested back to ownership in the first 13 months tax free. The property appraised for $2.45M, 44% above our basis of $1.7M and 69% above our purchase price.