Chicago Archives | F Street https://fstreet.com/tag/chicago/ Creating Wealth and Shareholder Value Thu, 16 May 2024 20:51:05 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://fstreet.com/wp-content/uploads/2023/03/cropped-F-Street-Favicon-Logo-32x32.png Chicago Archives | F Street https://fstreet.com/tag/chicago/ 32 32 F Street, CKO pumping $35M into distressed South Side apartments https://fstreet.com/f-street-cko-pumping-35m-into-distressed-south-side-apartments/?utm_source=rss&utm_medium=rss&utm_campaign=f-street-cko-pumping-35m-into-distressed-south-side-apartments Mon, 29 Apr 2024 01:12:07 +0000 https://fstreet.com/?p=3222 The post F Street, CKO pumping $35M into distressed South Side apartments appeared first on F Street.

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THE REAL DEAL

Chicago landlords Chikoo Patel and Shai Wolkowicki are adding 518 apartments to their South Side holdings, through a plan to buy four distressed portfolios in partnership with a Milwaukee-based firm, they said.

Patel and Wolkowicki’s CKO Investments is teaming up with Scott Lurie’s F Street Investments to spend $35 million on 19 buildings in Hyde Park and South Shore, properties plagued with various financial conundrums, including foreclosures and allegations of mismanagement.

In a presentation to potential investors on Thursday, the firms said they’ve locked in deals with lenders on three of the four portfolios to assume their existing debt packages with interest rates between 3.99 and 4.6 percent, sparing the buyers from today’s higher interest rates.

The deal will come to about $68,000 per unit on average across all of the portfolios, and projected they can bring the portfolio’s value up to a little more than $108,000 per unit with new management and renovations, which are expected to cost $27,000 per unit.

“We’re seeing more bank-owned real estate and more distressed real estate. We see great opportunities in the market and these are certainly some of those,” Lurie said during the presentation.

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]]> F Street Announces the Launch of its Value-Add Multifamily Fund (VAM Fund 1 LLC) for Accredited Investors https://fstreet.com/f-street-announces-the-launch-of-its-value-add-multifamily-fund-vam-fund-1-llc-for-accredited-investors/?utm_source=rss&utm_medium=rss&utm_campaign=f-street-announces-the-launch-of-its-value-add-multifamily-fund-vam-fund-1-llc-for-accredited-investors Mon, 22 Apr 2024 06:00:04 +0000 https://fstreet.com/?p=3206 The post F Street Announces the Launch of its Value-Add Multifamily Fund (VAM Fund 1 LLC) for Accredited Investors appeared first on F Street.

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PRESS RELEASE

Milwaukee, WI – [April 22, 2024] – F Street is pleased to announce the launch of VAM Fund 1 LLC, a multifamily investment vehicle offered exclusively to accredited investors. VAM Fund 1 LLC focuses on acquiring distressed multifamily assets, renovating the units, and leasing units at market rates to generate substantial returns for investors.

Read more at Yahoo! Finance for additional commentary. 

Experienced Partners Lead the Way
F Street has partnered with Shai Wolkowicki and Chikoo Patel of CKO Real Estate, real estate industry veterans with extensive experience in the multifamily asset class, to operate and manage VAM Fund 1 LLC. Their expertise and past successes complements F Street’s proven track record, ensuring a strong foundation for the fund’s success.

 

Capitalizing on Distressed Assets
VAM Fund 1 LLC represents the first in a series of Value-Add Multifamily (VAM) investment funds planned for launch over the next 12-24 months. The strategy capitalizes on the opportunity to acquire distressed multifamily assets at a discount, unlocking their value through renovations and strategic re-leasing.

Hyde Park and South Shore Take Center Stage
VAM Fund 1 LLC offers a unique opportunity to invest in the acquisition of 492 multifamily units across 21 properties in Chicago’s Hyde Park and South Shore neighborhoods. This is your chance to own a fractional equity interest in this multifamily portfolio that are positioned well to benefit from current economic conditions.

 

Investor-Centric Approach
F Street’s investment thesis prioritizes investor returns. In fact, the structure of this investment ensures that all free cash flow is distributed to investors until their investment is returned in full. By acquiring properties at a discount, renovating units, and re-leasing at market rents, VAM Fund 1 LLC aims to:

  • Increase net operating income and asset value
  • Generate equity for investors
  • Refinance the investment to return a significant portion of invested capital within the first 24-30 months
  • Manage the property and provide ongoing cash flow distributions to investors.

 

Join Us in This Exciting Opportunity
F Street and CKO Real Estate are seeking to raise $15.3 million for VAM Fund 1 LLC, with the sponsor group itself contributing at least $1.5 million. The offering is open to accredited investors only, with a minimum investment of $50,000.

Interested investors are encouraged to visit www.fstreet.com to invest or contact F Street to discuss the investment in more detail. Don’t miss out on this chance to be part of this promising investment opportunity!

 

Contact:
Josh Lurie
Principal / VP Investor Relations
josh@fstreet.com
(414) 315-3190

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