CHICAGO: Value-Add In Short Supply

Multifamily value-add deals have become the worst-kept secret in major markets, and in Chicago they're in very short supply. Lenders have sold off most of their well-located distressed product, but investor demand keeps growing, Marc Realty Residential principal David Ruttenberg (snapped with his daughter Sasha) tells us. His firm just closed on three value-add apartment deals in Chicago's North Side neighborhoods. Two came from lenders and one is a complete gut job after a fire. The secret is patience and relying on asset class experience, David says, also closing all cash and financing later. At one property, the firm will raise rents 55% after putting in $500k of work.

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