CHICAGO: The Cycle Repeats?
As much as we all hate it, the only thing certain in multifamily is its cyclical nature. Jameson CEO Chris Feurer (above right, with Torque's Kevin Masi) is seeing a development shift from rentals to condos (in A-plus Chicago neighborhoods) for the first time since '08. That means apartment conversions are on the horizon, since condo inventory remains sparse. Condos may be harder to finance, but they make for a more definitive exit strategy, he says. (We prefer the fire escape.) About half of the developers are fresh faces, he's noticed, from both local and out-of-state shops. Some have never built a building before but now have funds to divert into real estate, and it remains to be seen what kind of learning curve these newbies face, he says.
