619 E Groveland Park | 7 Unit Multifamily

Description:

The Midwest Investment Advisors with KW Commercial and Keller Williams ONEChicago are pleased to present 619 E. Groveland Park, a 7-unit multifamily investment located within the gated, landmarked Groveland Park community in Chicago’s Bronzeville neighborhood. Offered at a list price of $1,200,000, the property provides an opportunity to acquire an apartment asset in one of Chicago’s most architecturally significant and supply-constrained submarkets, with a light value-add plan supported by a $50,000 renovation budget.

 

Originally constructed in the early 1900s and thoughtfully revitalized, the property encompasses approximately 5,697 square feet across a unit mix of (3) 2-bedroom + den / 1-bath units and (4) 1-bedroom / 1-bath units, plus a garden unit. Unit sizes generally range from approximately 525–950 SF (with the garden at ~650 SF), featuring efficient layouts and individual unit appeal that support operational stability and long-term tenant retention.

 

In-place financial performance is strong and stabilized. The asset is currently generating $127,800 in gross annual rental income ($10,650/month). With a 4% vacancy assumption (-$5,152) and $1,008 in annual laundry income, effective gross income totals approximately $123,656. Operating expenses are efficiently managed at approximately $30,171 (a 24% expense ratio), resulting in a current NOI of $93,484.

 

Value-add upside is clear and executable via a light renovation program. A $50,000 renovation budget (light interior enhancements and unit turns) supports mark-to-market rent growth from $10,650/month to $13,200/month (gross annual rent from $127,800 to $158,400). Under the pro forma scenario (still assuming 4% vacancy and $1,008 in laundry income), effective gross income increases to approximately $153,032, with total expenses of approximately $31,377 (a 21% expense ratio), producing a pro forma NOI of $121,655. On a total cost basis of $1,250,000 (purchase price + $50,000 renovation), this equates to an estimated 9.73% pro forma cap rate and a 7.89 GRM on total basis.

At the offered price, the asset is positioned at approximately $211/SF and $171,429/unit, aligning well with boutique multifamily pricing in Bronzeville and the broader South Lakefront. A sample financing scenario utilizing 80% LTV ($960,000 loan), 6.00% interest, and 30-year amortization results in an estimated annual debt service of approximately $69,068 and a 1.35x DSCR under the pro forma. This structure generates projected net cash flow of $24,416 in-place (10.17% cash-on-cash on $240,000 equity) and $52,587 post-renovation (18.13% cash-on-cash on $290,000 total equity, inclusive of the $50,000 renovation budget).

 

Beyond the numbers, 619 E. Groveland Park benefits from its irreplaceable setting within a gated historic park environment—offering residents a quiet, residential atmosphere rarely found this close to Downtown Chicago—while still providing convenient access to Lake Shore Drive, major employment centers, public transit, and continued investment activity throughout Bronzeville.

 

This offering is ideally suited for investors seeking durable in-place income with measured value-add upside, minimal operational disruption, and strong long-term appreciation fundamentals. With a modest $50,000 light-renovation plan to capture rent premiums, 619 E. Groveland Park delivers stabilized cash flow today and a clear path to enhanced returns tomorrow—within one of Chicago’s most iconic and supply-restricted residential enclaves.






Irreplaceable Bronzeville Location: Situated inside the landmarked Groveland Park community, a supply-constrained micro-market with strong long-term demand drivers.


Boutique Asset in a High-Barrier Submarket: Small-unit count, historic character, and limited competing inventory support durable occupancy and rent resilience.


Stabilized In-Place Cash Flow: $93,484 current NOI on $127,800 gross income with a 24% expense ratio, providing immediate yield while you execute the upside plan.


Clear Light Value-Add Upside ($50,000 Budget): Modest interior enhancements/turn work supports a straightforward rent lift without heavy CapEx or operational disruption.


Material Rent Growth Embedded in the Rent Roll: Current rent of $10,650/month with a pro forma of $13,200/month (annual gross from $127,800 → $158,400), driven by mark-to-market adjustments across unit types.


Strong Pro Forma Yield on Total Cost: $121,655 pro forma NOI equates to roughly a 9.73% cap rate on total cost (purchase + $50K renovation), supporting attractive basis and exit optionality.


Attractive Financing Profile (Illustrative): At 80% LTV, 6.00% interest, 30-year amortization, estimated debt service of $69,068 with a projected 1.35x DSCR under the pro forma.


Meaningful Cash-on-Cash Expansion: Estimated 10.17% CoC in-place and 18.13% CoC post-renovation (based on the sample financing and total equity including the renovation budget).


Compelling Basis Metrics: Approx. $211/SF and $171,429/unit at the asking price—positioned competitively for a boutique Bronzeville multifamily asset.


Balanced Unit Mix & Tenant Demand: (3) 2BD + Den and (4) 1BD units (plus garden), appealing to a broad renter pool and supporting leasing velocity.


Efficient Operations: Expenses remain controlled and predictable (taxes, insurance, utilities, reserves), helping preserve NOI growth as rents rise.


Multiple Exit Strategies: Hold for cash flow + rent optimization, execute light upgrades and refinance, or sell into a liquid buyer pool seeking stabilized multifamily in Bronzeville.