Lee Kiser, whose Kiser Group of Marcus & Millichap was involved in both deals, tells GlobeSt.com the $126 per sf price paid by the buyers of the Uptown building surpassed the $110 per sf paid at 4242 N. Sheridan Rd.
The capitalization rate on the Uptown deal was 5.48%, but Kiser cautions against using that figure as a new area standard. About 80 of the units are rented on a month-to-month basis, with below-market rents, he explains.
"The appealing thing about the building was the month-to-month tenants," Kiser says, adding the private partnership will most likely renovate the units as they become vacant and raise rents to market. "We see continued pressure on rents, continued pressure on prices."
The Polk Street Station asset, which was on the market for 14 days, traded at a 7.56% capitalization rate to a local apartment building owner and condominium converter. The building's future is up in the air, Kiser tells GlobeSt.com.
"I don't think he's made up his mind yet," Kiser says, adding the eventual exit strategy will likely be condominium conversion.
Eric Bell of Marcus & Millichap represented the seller of Polk Street Station while Kiser represented the property's new owner. Jason Steiner of Marcus & Millichap represented the buyer of the Uptown property while Kiser represented the seller.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
