(left, with Aries SVP Jeff Bucaro and a rude, photobombing ram) says
between 2008 and 2012, there was very little new construction for
apartments and virtually no condo units in Chicago. So there's demand for apartments,
he says, adding that with household formations, less tenant turnover to
buy homes, and an improving job market, the additions to the city's
apartment stock through 2014 or 2015 should be absorbed.
But not all is rosy for multifamily: "Rent increases, while
aggressive in 2012, may not be as robust as developers are projecting
in 2014." As for other property types, Neil believes there are some
good repositioning opportunities and lenders are
starting to recognize these: "There is ample money from non-banks for
loans at good rates for stable properties with good cash flow."