A Seller’s Market for Neighborhood Multifamily
It’s been a good time in the cycle to take some chips off the table, Marc Realty Residential partner David Ruttenberg tells us. MRR (repped by Essex Realty Group’s Jordan Gottlieb) just sold 3441 N Halsted in Lakeview for $3.5M and 2611 W Augusta in Humboldt Park/Ukrainian Village for $900k, he says. Brokered by Interra Realty’s Brad Feldman, the six-unit Augusta deal (pictured) was a note purchase from a lender about 18 months back. The eight-unit Halsted property (with ground-floor Halsted’s Bar + Grill) was a note purchase in 2010 with a longer foreclosure process and more extensive rehabbing, he adds.
Halsted’s out-of-town buyer, a NYC family office, is indicative of a growing trend, David says. Wealthy New York real estate families are finding twice the yield they can get in Manhattan with similar product in Chicago neighborhoods (even at a 5% cap rate), so they’re selling off NYC assets and doing 1031 exchanges into local multifamily deals, he tells us. (A plus for owners like MRR, JAB or Cedar Street.) But as much as MRR is selling, it’s still hungry for value-add deals from multifamily to suburban retail, he says. David was in Kansas City visiting the in-laws for Thanksgiving.