Schwarz Properties

Belvidere, IL

• Type: Multifamily

• Sale Price: $2,202,286

• Cap Rate: 8.00%

• Unit Price: $53,714

• Date: 11/30/2020

• Represented: Marengo seller, Chicago buyer

The 49 apartment homes are located right off of Business Street 20 and High-line Road making the property very accessible from Highway 90 going north or south. The buildings were constructed between 1967 and 1997. The current owner is in charge of maintenance, leasing, plowing and other general management. The current owner does not live in the area and has opted to keep rents low to avoid turnover. The properties are nearby a retail corridor and a few minutes from downtown Belvidere. The neighborhood is safe and has a new playground.

Upside Potential - The average rent per square foot of the comparable rental properties is for 2 bed is $0.93. The property currently has rental rates of between $0.73-0.83. A prospective buyer could upgrade the units or market the property as is using online marketing platforms to stretch renter audience.

Rockford/Belvidere has recently seen an economic expansion with the construction of Mercy Health’s $465 million complex. The complex is expected to be completed in 2019 and is the most expensive construction project in Rockford history. Rockford has also seen the expansion of its logistics and distribution industry, with ATI, ABX and Atlas Air partnering with Amazon Prime to begin operating multiple daily cargo flights from Rockford Airport. In addition, Rockford International Airport is currently undergoing a $20 million terminal expansion.