South Shore Portfolio Chicago, IL

Investment Highlights

• Strong In-Place Occupancy and Attractive Yield Profile – 8%+ Cap (97% occupied)
• Attractive Tax Abatements Through Affordable Housing Special Assessment Program
• Strong In-Place Relationship with Housing Agencies and Catholic Charities Providing Rental Assistance to Voucher Tenants
• Transformational Investment Projects in the Quantum Shore Development and Obama Presidential Library – Less Than 10 Minutes Away
• Attractive Demographics and Affordability Advantage
• Significant Recent Capital Improvements with Renovated Unit Base
• Compelling Value-Add Opportunities Across Both Assets
• Free and Clear of Debt
• Irreplaceable Lakefront Location Near Chicago’s Central Business District
• Proximity to Major Employment, Education, and Healthcare Hubs

Strong In-Place Occupancy and Attractive Yield Profile – 8%+ Cap (97% occupied)

The assets are highly occupied, averaging approximately 95 percent occupancy across the portfolio, and offer an attractive going-in yield in excess of 8 percent. Chicago fundamentals remain favorable, with above-average rent growth ranking among the top five nationally in 2025, limited new supply representing less than 1.5 percent of total inventory under construction, and only one multifamily project currently underw ay within a five-mile radius of the assets, supporting sustained occupancy and pricing power.

Attractive Tax Abatements Through Affordable Housing Special Assessment Program

The South Shore Portfolio benefits from reduced real estate tax assessments under Chicago’s Affordable Housing Special Assessment Program, which applies favorable assessment treatment to qualifying affordable housing units. This program results in a materially lower tax burden relative to comparable market-rate properties, supporting stronger in-place cash flow and enhanced yield visibility. The favorable assessment structure provides added income stability and downside protection in a high-tax urban market, improving the portfolio’s overall risk-adjusted return profile.

Transformational Investment Projects in the Quantum Shore Development and Obama Presidential Library

The South Shore neighborhood is undergoing a generational transformation driven by two landmark projects that are expected to materially reshape the South Lakefront for decades. Quantum Shore Chicago, located approximately six minutes from the properties, is expected to generate approximately 175,000 jobs over the next decade across quantum computing, healthcare, and research sectors, in addition to roughly 20,000 construction jobs during phased development. The project is projected to deliver an estimated $20 billion economic impact to the greater Chicago area over the next ten years. The Obama Presidential Center supported approximately 5,000 construction jobs and is expected to create an additional 2,500 permanent jobs annually once operations commence in Spring 2026, further strengthening long-term renter demand in the submarket.

Amenities