|@properties’ co-founder Thad Wong (right, with co-founder Michael Golden and Dan Stratis, who was hired recently
as head of commercial brokerage) tells us that he expects Chicago multifamily rents to stabilize in 2013, since some renters might be interested in buying property again, taking a bit of the pressure off increasing demand.
There’s also little risk of an overbuilt market, since new supply
still isn’t keeping up with demand. Thad says investors are scouring
many Chicago neighborhoods—not just the upscale likes of Lincoln Park and Wicker Park—for strong apartment locations, and they’re finding them. (Someone even made an offer on our empty Christmas UPX boxes, but we chose to just recycle them instead.)
| Tricap principal Bryan Pritchard tells us investors are looking deeper into not only Chicago, but many Midwestern markets for strong apartment properties.
“The Midwest hasn't experienced the highest highs and lowest lows of
more volatile markets on the coasts, and that relative stability is very attractive to investors, particularly anyone that got burned
in the recession,” he says. (Once bitten, twice shy, triple net.)
Recently Tricap bought the 120-unit Residences at Sawmill Park in
suburban Columbus, Ohio, on behalf of private investors.