Speedwagon Real Estate paid $135.5 million for purchasing 16 real estate properties taking over a portfolio that is considered as the company's biggest deal yet. The portfolio includes shopping centers in Kenosha, Wis., San Diego office property and apartments in Evanston. The properties were sold by Raymond & Associates of Ilinois which is based in Northfield and established in 1962.
According to chicagobusiness.com, the biggest unit among the properties was the 425- unit apartment complex located at 4350 W. Lake Avenue in Glenview. Two adjacent shopping centers with a total of 570,000 square feet in Kenosha, Southpost Plaza and Indian Trail Plaza and a 64,000-square- foot office building in Sand Diego were also included in the portfolio.
Most investors prefer buying a single real estate sector but purchasing different property types gives opportunities for investors who have a knack in playing a buy-keep-and-sell game. Also, discounts for this kind of purchase is more common for few investors venture on this kind of transaction.
The co- founder and president of Chicago- based apartment brokerage Essex Realty Group, Doug Imber, said "Is the whole greater than the sum of its parts, or is the whole less than the sum of its parts? In real estate terms, are you able to buy by the acre and sell by the foot?"
According to evanstonnow.com, Speedwagon bought an apartment building built on the 1970s at Sheridan Square on the lake front for $7.2 million. Below are the other properties included in the Raymond's portfolio bought by Speedwagon.
a. 1700 Hinman Avenue for $4.4 million
b. 1740 Hinman Avenue for $43.6 million
c. 1516- 20 Central St. for $2.38 million
d. 2114 Central St. for $2 million
e. 2602- 04 Central St. for $2.42 million, and
f. 2620 Central St. for $1.1 million
The six- story apartment building at 550 Sheridan Square was the biggest purchase in Evanston last month.