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CHICAGO-Despite lower occupancy rates as well as shrinking rental income, owning multifamily rental property remains an enviable position, according to Appraisal Research Counselors. Sales of multifamily properties in a Downtown market that stretches from North Avenue to Cermak Road have totaled $116 million this year, down from a normal range of $320 million to $420 million, reports John Jaeger of the firm.

“It’s a quiet year for sales transactions,” Jaeger tells the Chicago Real Estate Council.

However, that means it is a good time to be a seller of multifamily rental property, as plenty of cash is chasing the few deals that come to market, he adds. Jaeger notes competition among buyers has been keen not only Downtown, but in the suburbs, with brokers telling him they cannot print enough marketing brochures for their listings.

Meanwhile, capitalization rates for the properties that do trade have dropped from 9% for class-B properties top 8%, Jaeger tells GlobeSt.com, and from 8% for class-A properties to 7% or lower.

Jaeger’s view follows a Marcus & Millichap Apartment Research report earlier this year that notes sales prices of multifamily properties have gone up despite declining net operating incomes—producing lower cap rates on deals.

Most recently, CB Richard Ellis represented the seller of Village Park in Schaumburg, a 367-unit development that commanded a $29.365-million sales price.

Among deals noted in a Marcus & Millichap research report include the 320-unit Hunter’s Glen Apartments in west suburban Aurora for $22.8 million, a deal that saw CB RIchard Ellis represent the seller.

Other larger deals noted in Marcus & Millichap’s report were 240-unit complex in south suburban Alsip for $9.25 million, a 55-unit building in the Lakeview neighborhood for $5.5 million and the 72-unit Heritage Green Apartments in far north suburban Mundelein for $5.2 million.

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