Located in the heart of Chicago, the Lincoln Park Plaza is a magnificent fifteen-story tower that boasts prime retail space on its ground floor. The property’s owner, who had been in the business for over two decades, was eager to expand beyond the Chicago market. With the help of AHG, they identified the most effective disposition strategy to maximize the property’s value.

The main challenge was that there were no comparable projects that included a combination of affordable, market-rate, and retail space that had been sold in Chicago’s history. AHG tackled this challenge head-on and worked towards the goal of maximizing the property’s value for the apartments. To achieve this, AHG carefully evaluated and segregated the values between the multifamily and retail spaces.

AHG launched a comprehensive 60-day marketing campaign to promote the property’s sale. The campaign involved sending an email blast to a wide network of nearly 7,000 developers and large institutional buyers across the country. The primary focus of the team was to target groups with the financial capacity to successfully purchase a unique opportunity of over $100 million.

Thanks to their meticulous efforts, AHG was able to narrow down the buyer pool to three potential groups. All three of them were highly interested in the property and demonstrated their commitment by putting forward seven-figure non-refundable deposits within a very short due diligence period. This was a testament to AHG’s ability to attract serious buyers and facilitate successful transactions.

AHG developed a targeted marketing campaign aimed at identifying buyers with the necessary resources and expertise to capitalize on the unique opportunity presented by the property. Given that most buyers in this specific property class lacked experience in owning or operating retail spaces, AHG designed a national marketing strategy that successfully attracted more than 10 qualified buyers.

However, the marketing period was not without its challenges. A sudden surge in interest rates and the unexpected vacancy of several retail spaces presented significant obstacles. Despite this, AHG persevered and successfully navigated through them, ultimately leading to a successful transaction.

In the end, AHG successfully identified a buyer who had the substantial financial resources and long-term vision necessary to capitalize on the property’s potential for rental growth and value appreciation. This buyer also recognized the importance of stabilizing the retail space and the value of having a mix of affordable and market-rate multifamily units.

The Lincoln Park Property ultimately sold for an impressive amount, setting records for the highest price per unit, lowest CAP rate, and highest price per square foot for both retail and multifamily spaces. This achievement is a testament to AHG’s expertise in identifying and bringing together serious buyers with unique and complex investment opportunities.