Chicago Real Estate Gets Boost From Property Investment

  • 9 years ago
  • Uncategorized

While most investors focus on one real estate sector, the Chicago real estate firm Speedwagon Properties paid $135.5 million for 16 real estate properties ranging from shopping centers, apartments to office property. The bold real estate firm purchased these properties from family-owned business Raymond & Associates, founded in 1962.


The portfolio includes a 64,000-square-foot office building in San Diego, two shopping centers reaching a total of 570,000 square feet and the most important acquisition – an impressive 425-unit apartment complex in Glenview. The good news, given the diversity of the properties purchased, is the discount involved when taking up such an investment challenge.


“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?” said Doug Imber, the president and co-founder of the Chicago-based apartment brokerage Essex Realty Group.

While all properties purchased are ideally located to serve their purpose, the seven buildings in Evanston are probably the best deal, including a 37-unit apartment building on the lakefront.

Steve Khoshabe, Speedwagon Properties’ Managing Partner said that this $135.5 million acquisition is the firm’s biggest deal so far and that he is yet to decide the future of the properties. However, given their strong locations, Khoshabe is not at all worried and is confident that has made a good deal.

According to the Illinois Association of Realtors, Chicago’s housing market is rebounding as existing-home sales grew 14.2 percent from last year, reaching their highest level since 2006. Median housing prices, which are 5.7 percent higher than a year ago, are also increasing the rebound. While the homes sales in Chicago reached a median price of 5.5 percent higher than a year ago, condo prices rose only 4.5 percent from a year ago, at a clear slower pace.

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