"We're in the same spot we were in 10 years ago," Jaeger says, pointing to a 90.5% Downtown occupancy rate that is a full percentage point improvement from a year ago. "The market is headed into the spring and summer in better shape than it was last year."
Condominium converters have made up 30% of the multifamily sales market over the last 10 years, Jaeger notes. However, with the development pipeline slowing, the acquisition market remains competitive. Multifamily sales have averaged more than $320 million a year, but totaled just $134 million last year, Jaeger notes, with $89 million coming from the sale of The Sterling.
"That's going to change," Jaeger predicts.
Among properties being marketed by Lee Kiser of Marcus & Millichap Investment Brokerage are the 250-unit 1140 N. LaSalle St. at $20.5 million and a 6.83% capitalization rate and 1250 N. LaSalle St. at $18.5 million and a 6.46% cap rate. Holliday Fenoglio Fowler's Matt Lawton is accepting bids on the 330-unit 2 E. 8th St. until Friday, Jaeger notes. In Lincoln Park, Dan Cohen of CB Richard Ellis is open to offers on the 138-unit 2470 N. Clark St. until Feb. 21, Jaeger adds.
"It's a very good time to list a property because there's very little available," Jaeger says. Other factors pushing up prices are low interest rates and lack of better investment alternatives, he adds.
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