Hilco Real Estate, LLC Announces Large Residential Income-Producing Portfolio Sale

NORTHBROOK, Ill., July 2, 2014 (GLOBE NEWSWIRE) -- Hilco Real Estate, LLC (www.HilcoReal.com ) has announced an upcoming auction on July 24, 2014 for a large residential income producing portfolio consisting of 173 properties with a total of 401 units located in five northern Lake County Illinois suburbs. The current owner has strategically assembled this portfolio over an eight-year period. The sale includes single-family homes, multi-family buildings up to a 32-unit apartment complex, and a few commercial spaces.  To assist in a smooth ownership transition, the management company is also being offered for sale.

Regional Real Estate, LLC (the current owner) and (its related companies?) the related entities have successfully filled a niche in the subsidized housing arena in the northern suburbs of Chicago, where over 80% of the residents are part of a subsidized program.  A majority of the units are leased to Housing Choice (a.k.a. Section 8) Voucher holders. However, several other homes in the portfolio are leased under a variety of other successful subsidized programs modeled very similarly to the Housing Choice Voucher program.  By focusing on subsidy programs, the combined portfolios have historically held an occupancy rate above 90% and an ongoing collections loss of only 3.25%.  Over 90% of the rent from those subsidized residents is paid directly from one of the subsidy programs. Each of these programs has historically paid consistently and on time, dramatically reducing investment risk. Another benefit of subsidy programs is the residents' potential loss of their subsidy should they cause excessive damage to the property or be evicted.

The portfolio properties are located in northern Lake County Illinois, with the majority of the properties in Waukegan, North Chicago, and Zion, and a few properties in Round Lake, Beach Park, and Kenosha.  They all benefit from their close proximity to strong economic activity not only in the North Chicago area but also in Kenosha, Racine, and Milwaukee. Several redevelopment and revitalization plans are underway in the market area for this portfolio which will serve to attract more tenants and add value to the investment's long-term potential.
Jeff Azuse, Senior Vice President of Hilco Real Estate stated, "Rarely can you find a residential portfolio of this size in an easy-to-manage geographic area. This offering is an exceptional opportunity for residential real estate investors to bid on a turnkey operation that offers a stable income stream and allows buyers to immediately grab a significant market share in the suburban Chicago residential market."  

Detailed due diligence material is available for the portfolio in our virtual deal room. The deal room contains property specific information, an explanation of the auction process and the Terms of Sale. Please contact the Project Manager at (847) 418-2700 to request access or to tour the properties

Bids are due on July 24, 2014 by 5:00pm Central Time, delivered to the offices of Hilco Real Estate, 5 Revere Drive, Suite 320, Northbrook, IL 60062. Attention: Jeff Azuse.  For more information about bid qualifications and further details about this portfolio or other upcoming auctions, please contact the Project Manager at (847) 418-2700 or visit www.HilcoReal.com.

About Hilco Real Estate:  Hilco Real Estate, ("HRE") a Hilco Global company, is headquartered in Northbrook, Illinois (USA).  HRE is a national provider of accelerated real estate disposition services.  Acting as an agent or principal, HRE uses its experience to advise and execute strategies to assist both healthy and distressed clients to derive maximum value from their real estate assets.  By leveraging multi-faceted sales strategies & techniques, aggressive repositioning and restructuring experience, a vast and motivated network of buyers and sellers, and substantial access to capital, HRE exceeds expectations even in the most complex deals.