CLOSED | BHF Chicago Housing Group B & C
Multifamily Portfolios Located Throughout Chicago's South Side What Can Hilco Real Estate Do For You?4 Months or Less From Marketing to Closing
25 Total Offers Generated
$14M+ Increase From Stalking Horse Bids
$26M+ Total in Closed Sales
Challenge
In August and October of 2020, Hilco Real Estate (HRE) was retained to manage the court-ordered bankruptcy auctions of two Chicago multifamily portfolios. The first sale (In re: BHF Chicago Housing Group B LLC. 1:20-bk-12453) featured 45 properties totaling 535 units separated into six neighborhood pools and the second sale (In re: BHF Chicago Housing Group C LLC. 20-16567) featured 17 buildings totaling 181 units.
Both sales represented an opportunity for experienced owners/operators to make capital investments in order to bring the units up to City of Chicago and Department of Housing and Urban Development (HUD) standards, thereby unlocking the value of these properties. With low average occupancy levels throughout the portfolios, there was a significant amount of upside potential through physical updates, occupancy stabilization and leasing efforts. Knowledgeable buyers would be able to work directly with the city to fulfill the need for quality, affordable housing, and deliver revitalized properties to these communities, thus resulting in positive change within Chicago’s South Side.
Portfolio B | August Auction
45 Multifamily Properties
This portfolio featured 45 multifamily buildings totaling 535 units. It was being sold subject to a minimum stalking horse overbid of $8,440,000, which equated to $15,775 per unit.
After developing and implementing a comprehensive, nationwide plan to reach interested buyers, HRE generated numerous offers, guiding the final closing price upward to $18,625,000, an overwhelming 10+ million increase from the original stalking horse bid.
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4 Months From Marketing to Closing
20 Offers Generated
$10M+ Above Stalking Horse Bid
$18M+ Closing Price
Portfolio C | October Auction
17 Multifamily Properties
This portfolio featured 17 multifamily buildings totaling 181 units, and it was being sold subject to a minimum stalking horse overbid of $4,500,000.
After developing and implementing a comprehensive, nationwide plan to reach interested buyers, HRE generated numerous offers, guiding the final closing price upward to $8,750,000, an overwhelming 4+ million increase from the original stalking horse bid.
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11 Weeks From Marketing to Closing
5 Offers Generated
$4.25M+ Above Stalking Horse Bid
$8.75M+ Closing Price
Currently Working on a Case with a Commercial Real Estate Asset? Contact Us.
HRE is an expert at maximizing the value of assets in virtually every asset class. With decades of experience working with clients and properties in unique scenarios, HRE strategically addresses complexities to provide more options and better solutions.
Set up an introductory call to discuss how HRE’s services can support you.
Hilco Real Estate (HRE)
assists clients to monetize their assets. We have sold more than 200 million square feet of retail, industrial and office properties. With over 35 years of combined experience working alongside both lenders and investors in the sale and acquisition of every type of asset, our advisory team is an industry leader. We maximize property values in tight timeframes via auctions, note/loan sales, brokerage or potential repurposing solutions.
Passive liquidation management can lead to missed opportunities for substantial recoveries, especially during rocky economic circumstances. Don’t allow real estate assets to become liabilities – let HRE help expedite transaction offerings and provide stable footing and recovery opportunities amidst this tumultuous environment.
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