Developers of two downtown luxury apartment buildings have engaged Newmark to test the investment sales market in Chicago. The 346-unit Alta Grand Central and 166-unit Jax, both opened in 2020, are seeking buyers with the latter expected to attract bids exceeding $50 million.
Amid high occupancies and rising rents, it should be an opportune time for selling an apartment building; however, last year’s jump in interest rates has undermined the market by driving borrowing costs up and property values down. Daniel Haughney CIO of LG commented on this dichotomy saying “the underlying fundamentals are as strong as ever” yet “the capital markets are as weak as we’ve seen them”.
The multifamily industry is a dynamic one that requires staying abreast of trends which can be done at upcoming events such W Chicago City Center Hotel’s Connect Midwest: Multifamily & Adaptive Reuse Trends taking place June 13th 2023 where experts will gather for discussion on current topics within the field.
