Bankruptcy Real Estate Sale of 62 Multifamily Buildings in Chicago Surpasses Expectations with $26M Outcome
A large portfolio of multifamily commercial property for sale on Chicago’s South Side generated over 25 offers and exceeded stalking horse bids by $14.25M.
$26M
Combined Closing Price
$14.25M
Combined Total Above Stalking Horse Bids
25+
Qualified Offers Generated
Challenge
Hilco Real Estate (HRE) was engaged by the debtor and approved by both the bondholders committee and the city of Chicago to manage the complex disposition of 62 multifamily properties across the South Side of Chicago. The assets were part of a court-supervised Chapter 11 bankruptcy process with significant stakeholder oversight and a need to exceed initial stalking horse bid benchmarks.
Strategy
HRE implemented a multi-phase national marketing campaign and auction strategy, designed to drive maximum competition from both institutional and local buyers. Key actions included:
- Targeted outreach to multifamily investors, value-add buyers & community redevelopment groups
- Promotion of the portfolio through digital, direct mail & investor networks
- Coordination of a hybrid live & Zoom auction event to maximize participation & transparency
- Alignment with city requirements & court protocols to ensure smooth execution
Results
- $26M Combined Sale Price Across the Portfolio
- $14.25M Total Sale Value Above Stalking Horse Bids
- 25+ Qualified Offers Submitted
- All Sales Conducted in Compliance with Bankruptcy and Municipal Oversight
Outcome
This case underscores HRE’s expertise in managing high-stakes, multi-asset distressed property sales within dense urban environments. By leveraging an aggressive auction format and broad market reach, HRE delivered significant value above expectations—serving the interests of creditors, the city of Chicago and the community at large.