Tawani Enterprises Exits Rogers Park with Sale of $45 Million Apartment Portfolio

Strategic Insights -

Tawani Enterprises, an investment firm led by billionaire Jennifer Pritzker, has sold a significant portion of its Rogers Park holdings to Silver Property Group for $45 million. The portfolio includes six apartment buildings, a mix of historical structures and new construction, containing 263 rental units. The sale marks a significant shift in Tawani's investment strategy, which will now prioritize specialty use and commercial properties. The firm still owns several properties in the Rogers Park neighborhood, including the Chestnut Row rental townhouses and the Monroe Building.

Key Takeaways:

  • Tawani Enterprises has sold a $45 million apartment portfolio in Rogers Park to Silver Property Group, marking a significant shift in its investment strategy.
  • The portfolio includes six apartment buildings, containing 263 rental units, and was sold for $171,000 per unit.
  • The sale price is well below the replacement value of the buildings, with Silver Property Group's Principal Ron Abrams estimating it would cost over $100 million to reproduce the Farcroft by the Lake and the 50-unit Morse Avenue building.
  • Tawani will continue to own several properties in Rogers Park, including the Chestnut Row rental townhouses and the Monroe Building, a historic tower on Michigan Avenue.
  • The firm has a long history in Rogers Park, having purchased or built properties in the neighborhood between 2005 and 2012.
  • Jennifer Pritzker, the CEO of Tawani, has a net worth of $2.5 billion and is a cousin of Illinois Governor JB Pritzker.

Statistics:

  • 263 rental units sold to Silver Property Group as part of the $45 million portfolio.
  • $171,000 per unit sale price.
  • $45 million purchase price for the six-apartment building portfolio.
  • $11.5 million paid by Silver Property Group for an 8-story, 50-unit apartment building.
  • 3 to 5 times the sale price estimated to be the original construction cost for Tawani's Rogers Park properties.
  • 1,600 rental units owned by Silver Property Group prior to the purchase.
  • 300 units managed by Silver Property Group for other parties.

Sources:

  • [Silver Property Group Principal Ron Abrams quoted in the Chicago Tribune]
  • [Tawani Enterprises announcement on its website]
  • [Forbes article on Jennifer Pritzker's net worth]
  • [Crain Communications Inc. article on Tawani Enterprises' sale of Rogers Park properties]