Investments
Linear Investments was established in mid-2009 to take advantage of market conditions in real estate. Linear Investments is an opportunistic venture that has three distinct areas of focus, which are detailed below. Although our main area of interest is Chicago, we have pursued opportunities in the surrounding suburbs as well as out-of-state assets.
Acquisition Criteria:
Focus through targeted redevelopment:
Focus on acquiring distressed single-family homes in suburban neighborhoods of Chicago and Scottsdale, completely redeveloping to modern standards, and reselling on the open market. Homes are purchased well below rebuild cost and sold under market value once completed. Target assets will be distressed, failed, or foreclosed properties with significant value-added opportunities. This focus is unique compared to new construction development because of significant discounted acquisitions, diminished delivery time, and demand for completed product under market value, which new construction cannot afford.
Focus through 2 to 6 flat buildings:
Focus on acquiring residential 2 to 6 flat buildings at substantial discounts. Buildings must be cash-flow positive once stabilized, or After Repaired Value (ARV), based on 15-30 year amortization. Buildings reside on standard Chicago lots with favorable zoning. Target assets will be distressed, failed, or foreclosed properties with significant value added opportunities.
Property Types:
- 2 to 6 flat buildings that are bank-owned or distressed
- Brick or frame buildings
- Standard lots preferred
- RT-4 zoning preferred
- Open to any level of renovation
Locations:
1. Gold Coast, Old Town, Lincoln Park, Lake View, Bucktown, Wicker Park, River North, and Hyde Park
2. Lincoln Square, Andersonville, Ravenswood, North Center, Roscoe Village, Ukrainian Village, Edgewater, Uptown, Albany Park, and Irving Park
3. East Rogers Park, West Rogers Park, Logan Square, Humboldt Park, and South Shore
Transaction Size: $0 to $1 million
Focus through our unlevered partners:
We will pursue assets and first mortgages secured by real estate. Our offers will reflect the location of the asset in addition to the income it presently produces, or the expected income once we have control. We will work with owners and lenders, or a combination of the two.
Property Types:
- New, or nearly new, construction condo developments
- Traditional multifamily apartment buildings
- Mixed-use
Locations:
1. Chicagoland area and surrounding suburbs: A and B markets
Transaction Size: $1 million to $50 million
Focus through Multi-Housing Revenue Bonds:
Developing neighborhoods in urban areas of Chicago and throughout the United States that have a large demand for affordable housing are our main focus.
Property Types:
- Multifamily (5+ units) that are bank-owned or distressed
- Multifamily (5+ units) with a 20% low-income facet to them
- Senior Living facilities
- Large land sites in urban infill areas that will allow for new, low income, multifamily, or senior living construction
Locations:
1. Chicagoland area and surrounding suburbs: C markets
2. Core markets throughout the United States
Transaction Size: $5 million and up |
