A Chicago-area investment firm has acquired three apartment buildings on the East Side of Milwaukee near the University of Wisconsin-Milwaukee, the first step in a plan to build a portfolio of 200 units of rental housing around the university campus.
According to state records, an affiliate of Deerfield, Illinois-based Fairchild Acquisition bought the buildings at 2735 N. Murray Ave., 2634 N. Stowell Ave. and 2505 E. Park Place for $3.87 million. Sam Grossman, managing partner of Fairchild, said the buildings have 29 units total.
They were purchased from an investors groups affiliated with Milwaukee-based developer New Land Enterprises.
Fairchild specializes in rehabilitating properties that are near university campuses, Grossman said. It is pursuing something in Milwaukee similar to its 150-unit portfolio in Chicago's Edgewater neighborhood, he said.
The firm's Milwaukee portfolio plan consists of acquiring 25 buildings totaling 200 units by 2025, according to the firm's website. The estimated acquisition cost for that plan is $35 million and rehabilitation cost is $7 million. The anticipated portfolio value is $60 million.
Fairchild is investing $700,000 in the three Milwaukee properties it now owns. Over an estimated 12-18 months, contractors will replace electrical work, repaint hallways, replace baseboards, lighting and doors, and update laundry areas. Unit kitchen and bathrooms will be modernized, and the work will occur as they change tenants.
This is Fairchild's first venture in Milwaukee. But Grossman has a connection to the community. He was born and raised in Milwaukee, and "has numerous strong relationships in the market," the website states.
Milwaukee is being targeted because of its similar characteristics as the Edgewater area. In the past four years, UWM enrollment has gone up 38%, and the percentage of out-of-state students grew from 6% to 15%, according to the Fairchild website.
Grossman said his firm plans to acquire more apartment properties in Milwaukee in the near future.