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CHICAGO-Two recent multifamily sales in the South Loop and Uptown neighborhoods speak to the continued strength of the market. While the 138-unit building at 732 S. Financial Pl. commanded a $21.9-million sales price, the $5.9-million sale of a 98-unit double-courtyard building at 1338-54 W, Argyle Ave. was record-setting for the neighborhood.

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.

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