Evergreen Wicker Park

2147-2151 W Evergreen Ave, Chicago, IL 60622
Strategy: Add Value, Cash-Out Refinance
Status: Current
Purchase Price: $5,700,000
Acquisition Date: 2/22/2013
Units: 16 Units
Repeat Broker, Repeat Seller

Evergreen Wicker Park was our first acquisition in the Chicago market, in the Wicker Park neighborhood. It was a failed condo project in a bustling neighborhood with annual rent increases of 5-10%.

Evergreen Wicker Park went through a long foreclosure process that culminated with a deed-in-lieu sale of the asset to another development company. The acquiring entity did not adjust rents aggressively enough, leaving rent about 20% below market when we acquired the property.

We executed our vision by turning the building to a high-end, modern apartment community. We repainted the exterior metal, common areas, and eventually repainted all units to modern colors. We switched every vendor. After these improvements, we began to market the property aggressively with professional photos and best-in-class leasing agents.

We raised rents 20% and put a $6,500,000 permanent loan on the property, having paid only $5,700,000 for it. During our refinance, the property appraised for $8,620,000, 51% above our purchase price. We also paid back our LP 100% of the remaining initial equity they invested in the project tax free.