Cleaver

1433 N Cleaver St, Chicago, IL 60642
Strategy: Add Value, Cash Out Refinance
Status: Current
Purchase Price: $1,635,000
Acquisition Date: 3/13/2017
Units: 6 Units
Off-Market - Direct From Owner, Repeat Seller, 1031 Exchange Replacement Property

Cleaver is a residential multifamily building renovated in 2016 located in Noble Square, near downtown Chicago with easy access to I-90 and public transportation.

While selling a property in Madison, WI for 74% more than it originally paid, Breneman Capital started seeking suitable replacement properties for a potential 1031 tax-deferred exchange. That’s when we sourced two off-market properties: Greenview and Cleaver.

Cleaver was acquired off-market directly from the owner with no competing offers. Since the deal was direct, the seller eliminated brokerage commission costs and realized more net sale proceeds. This choice paid off since Breneman Capital discovered a broken sewer line. This issue would have killed the deal for most buyers, but Breneman Capital worked through it.

In the first 6 months of ownership, we distributed 95% of the cash invested back to ownership tax-free, including refinance proceeds. Cleaver appraised for $2,170,000—33% more than we paid for the property.