Kiser Group Brokers $22 Million Sale of 345-Unit Blue Station Apartments in Blue Island, Illinois

Kiser Group has brokered the $22 million sale of Blue Station, a 345-unit workforce apartment community at 2130 W. 122nd Street in Blue Island, Illinois, the firm announced Oct. 6. Kiser Group Principal and Designated Managing Broker Lee Kiser and Director Kyle Sissell represented the seller, Kinzie Assets, and its principals Andrew Brown and Charlie Clarke.

The property was 96% occupied at the time of sale.

Blue Station Apartments: Property Details

Blue Station Apartments sits at 2130 W. 122nd Street in Blue Island (ZIP 60406) and comprises 345 units. The unit mix includes 74 studio apartments, 60 one-bedroom units, 209 two-bedroom units and 2 three-bedroom units. Studios and two-bedroom apartments together account for 283 units, or roughly 82% of the community.

The property totals approximately 183,890 square feet on a 5.85-acre site. Multifamily listing data shows a 1938 construction date, and public listings describe a two-story community. At 96% occupancy, roughly 331 of the 345 units were occupied at sale.

The $22 million price equates to approximately $63,768 per unit, or about $119.63 per square foot.

Capital Improvements and Workforce Housing Positioning

Ownership invested more than $3.5 million in capital improvements over the four years preceding the sale, according to Kiser Group. The firm said the work contributed to strong historical occupancy at the property.

Residents have access to Metra commuter rail service and major roadways. Kiser Group said Blue Station maintains an affordable rental profile relative to many surrounding Chicago-area submarkets.

"This transaction reflects the strength of well-maintained workforce housing assets in the Chicago market," said Kiser. "With over $3.5 million invested in capital improvements and a strong occupancy history, this property offered the buyer immediate scale and stability — exactly what investors are currently looking for in the workforce niche. We had high interest from investors, from local portfolio owners to large, national affordable housing and not-for-profit investors."

The buyer acquired a stabilized workforce housing asset at scale and intends to build on the property's existing operational foundation without taking on the renovation and lease-up risk typically associated with heavy value-add assets, according to the firm.

AHSAP Tax Incentive Program

Sissell said the capital improvements and rents at Blue Station qualify the property for acceptance into AHSAP, Cook County's tax incentive program.

"Kinzie was able to submit the application prior to the 2025 deadline, which means once approved the tax reduction will apply to 2025's taxes paid in 2026," said Sissell. "This was a meaningful part of the transaction for the buyer."

Property taxes are a major component of operating expenses for multifamily owners, so a successful application could improve net operating income without relying solely on rent growth.

Chicago Multifamily Market Context

The sale comes as Chicago-area multifamily fundamentals have strengthened. Chicago-area vacancy declined to 3.0% in the second quarter of 2026. Quarterly net absorption reached 5,025 units, nearly five times the 1,064 units completed during the period. Trailing-12-month transaction volume totaled $7.06 billion, up 36.3% year over year, while average cap rates were essentially flat at 6.53%.

The Chicago multifamily market's second-quarter 2026 average price was $208,794 per unit, well above the roughly $63,800 per unit paid for Blue Station, which reflects its workforce-housing positioning and suburban location.

Blue Island has high demand for attainable rental housing, according to Kiser Group, with elevated costs of homeownership and limited affordable rental options in many nearby communities. The firm said the property's scale, occupancy history, completed capital expenditures and proximity to transportation position it well within this segment of the market.

Pricing and Transaction History

Blue Station had been marketed publicly at $24.5 million, or approximately $71,014 per unit, before the $22 million sale price. If the listing and sale refer to the same transaction, the sale price was about 10.2% below the asking price.

Kiser Group also brokered an earlier sale of the same property. In 2018, the firm announced an $18.6 million sale of the 345-unit Blue Station Apartments. The newly reported $22 million price is about 18.3% higher in nominal terms, or roughly $9,855 per unit. The comparison does not account for changes in income, intervening capital spending, tax treatment, financing or market conditions.

Sources

Kiser Group, "Kiser Group Brokers Sale of Blue Station Apartments, a 345-Unit Community in Blue Island": https://www.kisergroup.com/news/kiser-group-brokers-sale-of-blue-station-apartments-a-345-unit-community-in-blue-island/