Finding Value in Suburban Chicago Apartments
Coming out of the recession, apartment investors were rushing to get a hold of best in class rentals in core urban areas. Asset valuations have increased past pre-recession levels in many cities as a result. Today we are at a different point in the real estate cycle, where savvy apartment investors are waking up to the fact that now value lies in suburban apartments, particular in Class B and C assets.
Brian Rogel’s recent GlobeSt.com article caught up with Chicago’s Kiser Group for details on the types of deals apartment investors are sourcing outside The Windy City.
There is a theory that suburbs are dying”, John Meyer, senior managing director at Kiser, tells GlobeSt.com, mostly due to the migration of local companies into the city. “But every multifamily property I list out there has multiple potential buyers.
The Chicago-based real estate brokerage firm found that investors dropped about $642 million on Class B and C multifamily properties in Chicago suburbs. Cook County, unsurprisingly, was center of most of the activity. While Meyer says that there are a few firms doing fix and flips, the majority of investors view suburban Chicago apartments as a long-term investment.
Be sure to check out the full article for more stats on sales price and volume.