IPA Midwest MF Team Credits Coastal Investors For Many Sales

Statler Arms, a 295-unit value-add property in Downtown Cleveland, recently sold for $40 million.

CHICAGO–So far 2018 is proving to be a good year for Marcus & Millichap’s IPA Midwest Multifamily team of  Michael Barron, Josh Wintermute and Daniel Burkons. Year to date they have closed $251.4 million in multifamily transactions in the region. They have another $176 million under contract, just listed a $230 million portfolio with an additional $121.7 million on the market as well.

This activity is due in part to robust local markets and investors — but also what has been an ongoing story for the Midwest for the last five years or so: interest in the area from apartment investors in New York and Los Angeles and other coastal capitals. The reason is obvious: As pricing grew richer in these cities, investors began looking further afield for yield and opportunities. They came to the Midwest and found the yield they were seeking — and realized at the same time that these markets also offer very solid fundamentals. “You can buy a really strong asset in a good location and get a higher yield here,” Burkons tells GlobeSt.com. “Most of the investors that have come exclusively from the coastal markets who made a good purchase in the Midwest have come back for more.”