RCA in the commercial property press:

Investor Marketing Gold Coast, Lincoln Park Buildings

Chicago Real Estate Daily reports: Instead, Mr. Latsko plans to reinvest the proceeds from the sales, hoping to take advantage of the bargain prices for distressed real estate.

“Other people may like the upside of these things," he says of the properties he's marketing. "It’s solid real estate. I see more opportunities with the cash.”

Nonetheless, this is a tough time to sell, with sales of retail properties dramatically lower during the first four months of 2009 compared to the same period in 2008, according to a recent report by New York research firm Real Capital Analytics Inc.

“No rebound in sales is expected soon,” the report says.

Mr. Latsko is handling the sales of the apartment buildings himself. The other properties are being marketed by the Chicago office of Marcus & Millichap Real Estate Investment Services Inc.

A buyer of the 11-building portfolio could assume a nearly $21-million mortgage that runs until November 2014 and charges interest of about 5.5%, Marcus & Millichap says. In 2005, the properties had a combined appraised value of $29.5 million.

The asking price of $46 million is based on current annual net operating income of nearly $3.2 million and assumes that a buyer would expect a return, or capitalization rate, of 6.84%, according to an offering memorandum obtained by Crain’s.

That cap rate prediction may be optimistic. The average cap rate for Chicago-area retail properties was 7.3% during the 12-months ending April 30, Real Capital says. Just 38 properties have been sold during that time.

Included in the portfolio:

• 50-54 E. Walton St., a 6,300-square-foot building that kitchen products retailer Sur La Table is expected to vacate in September.
• 21 E. Chestnut St., a nearly 4,800-square-foot retail space leased to ING Direct until 2017.
• 40 E. Delaware St., a nearly 4,200-square-foot retail space leased to Intermix until 2017.
• 1160 N. Dearborn St., a nearly 8,000-square-foot building leased to Tsunami Japanese Restaurant.
• 851 W. Armitage Ave., a small building where apparel retailer Paul Frank Industries Inc. has a lease until 2013.
• 837 W. Armitage Ave., a small building where American Apparel has a lease until 2015.
• 823 W. Armitage Ave., a three-unit apartment building with vacant retail space.
• 819 W. Armitage Ave., a 2,500-square-foot building where a Berry Chill frozen yogurt shop is expected to open next month.
• 701 W. Armitage Ave., a five-unit apartment building with about 2,020 square feet of retail space.
• 662-664 W. Diversey Parkway, two buildings totaling about 5,700 square feet that are vacant, although Charter One has a lease for about half the space that runs until 2012.
• 1240 W. Belmont Ave., a roughly 12,500-square-foot strip mall anchored by a Chase branch bank.