WINGSPAN
  • Home
  • About
    • Leadership Team
    • Vision & Values
    • News
  • Residential
    • Buckingham Place
    • Sixteen|30 Luxury Community
    • Hub13 >
      • Hub 13 Community Page
    • The Hansen
    • Niche at North Hyde Park
  • Mixed Use
    • 20 West Apartments
    • Maple Street Lofts
    • Jade at North Hyde Park
  • Land Development
  • Contact Us

Suburban Multifamily Real Estate In 2017 Built On Its Breakout 2016

12/26/2017

0 Comments

 
Last year was one for the record books in Chicago multifamily real estate. Apartment sales downtown and in the suburbs set records for volume. This year, downtown multifamily struggled with new inventory resulting in flat rent growth, declining lease retention rates and developers of newer assets struggling to find buyers.  It is a completely different story in the suburbs, where investor demand is growing and deal volume is outpacing downtown this year.
Picture
Stofflet said value-add is the primary driver for suburban investor activity. The trend is strong throughout the suburbs, but markets that stand out are Elk Grove Village, Deer Valley, the North Shore and Lake Bluff. The spread between average area rents and Class-A rents make value-add the strongest play for investors. KIG Senior Director Jason Stevens said institutional money is chasing opportunities near highly rated schools, lifestyle centers and grocers. Stofflet said institutional partners working with KIG even created a scoring system for target neighborhoods, prior to entering any acquisition criteria.

Developers in the burbs are following rail lines and building transit-oriented developments near the downtown cores of villages. This activity is dominated by larger apartment projects, with a smaller amount of low-rise condos, mirroring downtown trends. One area of activity that stands out is along Metra's BNSF line, running from Union Station to Aurora. Nine developments are under construction or have been delivered between Western Springs and Naperville. These projects range from Marq on Main, a $50M, 202-unit TOD that Marquette Cos. will deliver in spring 2018, and Uptown LaGrange, a 254-unit TOD that Opus Development delivered last August. And there are smaller low-rise condo developments like Foxford Communities' Foxford Station, a 28-unit luxury condominium development in downtown Western Springs, which broke ground last July.  Foxford Communities Managing Director John McFarland said Foxford Station was originally intended to be a 52-unit apartment project during the entitlement process, but the company decided to build larger condos after seeing the flood of new apartments being built along the BNSF line. He believes there will be solid interest in Foxford Station from empty nesters making the move down market, and the apartments Foxford originally planned were too small.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    ​Chris Coleman, VP of Development at Wingspan, periodically shares his thoughts and observations on property development news. 

    Picture

    Archives

    December 2020
    November 2020
    August 2020
    February 2020
    January 2020
    December 2019
    October 2019
    August 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    September 2017
    August 2017
    August 2014

    Categories

    All

    RSS Feed

Wingspan Development Group

​Illinois Office: 
1001 Feehanville Dr. 
Mount Prospect, IL 60056 
Phone: (847) 394-6200 

Fax: (847) 394-6205 ​

Picture
Wisconsin Office: 
3880 W. Wheelhouse Rd.  
Suite B 
Milwaukee, WI 53208 
Phone: (262) 513-9300 
Fax: (262) 513-9400 ​
Picture
Picture

For inquiries and comments, please contact:

​Christopher Coleman
​
Vice President of Development
Phone: 847.394.6200 | Fax: 847.394.6205 

Submit
Website by Newmedia Design Solutions, Inc.
  • Home
  • About
    • Leadership Team
    • Vision & Values
    • News
  • Residential
    • Buckingham Place
    • Sixteen|30 Luxury Community
    • Hub13 >
      • Hub 13 Community Page
    • The Hansen
    • Niche at North Hyde Park
  • Mixed Use
    • 20 West Apartments
    • Maple Street Lofts
    • Jade at North Hyde Park
  • Land Development
  • Contact Us