Competition Heats Up for Suburban Multifamily

Two Itasca Place, a five-story 70-unit apartment building in Itasca, IL, recently sold to Waypoint Residential.

CHICAGO—The market for multifamily properties has been quite hot for years, but investors had been focusing much of their attention on developments in the central core. In 2017, however, more buyers began looking to the city’s outlying neighborhoods and its suburbs, according to a new study by KIG CRE.

“Not only have we seen more big deals in the suburbs, we have also seen transaction volume increase,” says Todd Stofflet, managing partner of KIG. “We are seeing bigger deals trade because the institutional capital is now chasing suburban deals. We are seeing more investors look at the suburbs for multiple reasons, including higher yields and real rent growth.”