Kiser Group is pleased to present this opportunity to acquire Blue Station Apartments in Blue Island, IL. Located just outside of the City of Chicago’s city limits, sixteen (16) miles from Downtown Chicago, and less than one (1) block from a Metra commuter train station, Blue Station Apartments consists of twenty-eight (28) buildings with a total of three hundred forty-five (345) multifamily units plus two (2) commercial spaces and an on-site management office with garage storage for management and maintenance. The property contains seventy-four (74) studios, two hundred nine (209) one-bedrooms, sixty (60) two-bedrooms and two (2) three-bedroom apartments. All buildings were constructed from 1963 to 1970 and have been renovated (2013) and well maintained by current ownership. Current ownership purchased twenty-four (24) buildings and three hundred fourteen (314) units in two contiguous parcels with overlapping ownership in July, 2011, with the goal of creating one single, renovated community under one brand and management by purchasing, renovating and stabilizing many of the neighboring properties. They saw the area’s potential due to its close proximity to a Metra commuter train station, a major expressway and shopping, making it an extremely desirable location for tenants. Though occupancy was approximately 90% in all buildings at the time of each purchase, delinquencies were significant. Ownership began renovating the units as they became vacant. New residents moved in from south suburban locations, drawn to the property because of its access and nearby amenities. In October, 2011, ownership purchased a single-family home adjacent to the property for use as a management office. Between August, 2012, and May, 2013, they purchased two (2) additional, neighboring apartment buildings totaling thirty-one (31) units. Major renovations of all three hundred forty-five (345) units were completed in September, 2013. In June, 2014, ownership purchased an adjacent retail building and garage and immediately began renovations. This retail property is currently 100% leased to a daycare facility and a large convenience store, providing excellent amenities to the community’s residents. Current ownership remedied all issues from acquisition and created a single, stabilized and renovated community under one brand – Blue Station Apartments. This investment is a unique opportunity to take advantage of existing conditions and to further add value to the community. The property is turn-key, well managed, well maintained and 95% occupied. However, many of the rents are currently below market value due to the large number of units that became available during renovation and staffing levels are still at pre-stabilization levels, allowing new ownership the opportunity to significantly reduce management and payroll expenses. New ownership will enjoy double digit cash-on-cash returns, low vacancies and minimal capital expenditures in the coming years. In addition, eleven (11) buildings have Class 9 status: an affordable housing property tax incentive that reduces property tax liabilities. In addition, the entire property is located in an Illinois Enterprise Zone and qualifies for a waiver of sales taxes for certain capital improvements.
Key Points: Metra Commuter Train Station On Site All Units Renovated On-Site Convenience Store And Day Care Class 9 Status On 11 Buildings 1/2 Mile From Marshfield Plaza 1/2 Mile From I-57 3 Miles From I-294 3 Blocks to Western Ave
Building Size: 183,890 SQ FT