7549 South Kingston Avenue

Colliers, in partnership with Crexi, is pleased to present the opportunity to acquire a non-performing note secured by Kingston Avenue Apartments, a 31-unit multifamily property located at 7549 S. Kingston Avenue in Chicago’s South Shore neighborhood. The offering provides investors with the opportunity to acquire a lender-controlled debt position collateralized by a vintage multifamily asset with significant stabilization and value enhancement potential.
Originally constructed in 1923, the property consists of a three-story apartment building. The asset has experienced significant deferred maintenance and operational challenges, creating an opportunity for a new owner to implement a comprehensive rehabilitation and lease-up strategy designed to restore the property to market standards and maximize long-term value.
The investment thesis is centered on acquiring control of the collateral through a note sale rather than a traditional real estate transaction. Multiple resolution strategies may be available to an investor, including foreclosure, deed-in-lieu, loan restructuring, or ultimate ownership and repositioning of the underlying real estate. Recent physical condition assessments identified a substantial number of non-rentable units and deferred maintenance items, highlighting the opportunity to renovate units, improve property operations, and execute a comprehensive stabilization plan.
A stabilized underwriting scenario projects average market rents of approximately $904 per unit per month, generating estimated effective gross revenue of $346,045 and net operating income of approximately $140,521 annually. These assumptions are supported by nearby comparable multifamily properties within the South Shore neighborhood, where competing assets achieve rents that generally exceed the underwriting used for the offering. Investors should note that these figures represent a pro forma stabilization scenario and are not intended to reflect current operating performance.
Located on Chicago’s South Side, the property benefits from proximity to Lake Michigan, the South Shore cultural district, public transportation, neighborhood retail corridors, and major employment centers throughout the city. The South Shore neighborhood has experienced ongoing public and private investment activity, which continues to support multifamily demand and long-term neighborhood revitalization efforts.

Kingston Avenue Apartments represents a compelling distressed debt opportunity to acquire a Freddie Mac-backed loan position secured by a well-located multifamily asset. Through successful execution of a stabilization and repositioning strategy, investors have the potential to create meaningful value through improved occupancy, enhanced property operations, and long-term asset appreciation.

Disclaimer: Current property operating information is unavailable. Financial metrics presented herein are derived from stabilized underwriting assumptions and market-supported projections and should not be interpreted as current operating results.

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