Moodys 4Q

Q4 2023 CRE Quarterly Economic Briefing
After a Turbulent 2023, is it Now Safe to Move About the Cabin?
Thursday, February 29th, 2024 | 2:00 PM EST | 11:00 AM PST
Tough 4th Quarter for CRE, but there is Light at the End of the Tunnel

Commercial real estate performance was again weak as we closed the doors on 2023. Transaction volume remained subdued, prices declined further, and even with a resilient macroeconomy, rent growth finished the year well below average across most property types. But as usual, not all individual markets, neighborhoods, or assets, performed the same; the devil is certainly in the details. In this webinar, we will dissect our finalized 2023 trend data, provide clarity as to its current and future meaning for the market, and discuss the importance of the Fed’s looser monetary policy on the horizon.
https://events.moodys.com/2024-02-amer-mau22915-macre-q4-2023-qeb-web#about-tab

Multifamily Property Sales in Naperville and Aurora | eXp Commercial

Maximizing Your Success in Multifamily Property Sales in Naperville and Aurora

Introduction

Achieve unparalleled success in multifamily property sales in Naperville and Aurora with the strategic expertise of Randolph Taylor and the eXp Commercial team. Our dedicated approach ensures your property stands out in the competitive market. Discover innovative sales strategies on eXp Commercial's website and see how we can elevate your property's profile.

Why eXp Commercial is Your Ideal Partner

Tailored Expertise for the Naperville and Aurora Markets Randolph Taylor brings unparalleled insights into the multifamily property landscape of Naperville and Aurora. Leveraging his extensive experience, we position your property for maximum exposure and optimal sales outcomes. Dive deeper into our market analysis techniques here.

Comprehensive Marketing Strategies At eXp Commercial, we don't just list your property; we launch it. Our comprehensive marketing strategies ensure your listing reaches a wide, qualified audience. From digital marketing to traditional advertising, we cover all bases. Learn about our unique approach here.

The eXp Commercial Advantage

Our commitment to your success is unmatched. Partnering with us means gaining access to cutting-edge tools, detailed market insights, and a team that's dedicated to achieving the best possible outcome for your multifamily property sale in Naperville and Aurora.

Conclusion

Don't leave your multifamily property sale in Naperville and Aurora to chance. Let Randolph Taylor and the eXp Commercial team guide you to success. Our expertise, tailored strategies, and unwavering dedication are the keys to unlocking your property's potential.

[row v_align="middle" h_align="center"] [col span__sm="12" align="center"] [button text="Schedule Call" color="secondary" size="large" radius="99" link="https://meetings.salesmate.io/meetings/#/expcommercial/scheduler/call" target="_blank"] [/col] [/row] https://www.creconsult.net/market-trends/multifamily-property-sales-in-naperville-and-aurora-exp-commercial/

Mastering Year 1 Assumptions in Real Estate Underwriting

It’s no surprise that the inputs in your underwriting model have powerful effects on returns. The real art of underwriting comes down to how well you can use these inputs to make the most accurate analysis possible.

That’s why your Year 1 assumptions are so critical.

When I am underwriting a new deal, I take a look at how the trailing 12 months and trailing 3 months look on the profit and loss statement.

In combination with my own assumptions, market data, and feedback from our property management company, I then use the T12 and T3 to create my Year 1 pro forma. Your entire analysis then builds off of the Year 1 numbers.

Income Assumptions:

To make the most accurate Year 1 pro forma possible, have the T12 and T3 data next to your Year 1 assumptions.

Underwriting is all above identifying trends. By viewing the historical data, you can ask yourself questions like this:

• Is physical vacancy increasing or decreasing?
• Is bad debt increasing and do we think we will inherit the property with unqualified tenants?
• How much of the utilities is the current owner billing back for? How much do we think can be recaptured in Year 1?

I’m constantly comparing my total income numbers to the historical figures. Sometimes I see underwriting from other sponsors where their Year 1 pro forma income is extremely high compared to the T12.

Depending on the business plan, this may be unrealistic to model. When we acquire a property, it takes time to renovate units, add new forms of income, and implement our business plan. I like to see a very gradual increase in my underwriting to be conservative.

Expense Assumptions:

Same goes for the operating expenses. It’s best practice to identify any trends from the T12 and T3 data.

• What contracts are currently on the property?
• What is the current owner paying for repairs? Will your Year 1 numbers be higher or lower?
• How much is the current payroll expense? Is it possible your payroll will be more/less?
• Are utilities rapidly increasing in the last few months? Will this effect your Year 1 numbers?

This is where passive investors can verify assumptions in the sponsor’s underwriting. Here you can check if the sponsor is expecting a tax reassessment in the first year. You can also clearly see how the Year 1 assumptions stack up against the historical numbers.

Making the most accurate Year 1 pro forma is critical because your entire analysis builds off of that. Use the T12, T3, and feedback from your property management company build the most accurate pro forma. Sometimes, abnormally high income changes in the first year may be unrealistic.

Source: Year 1 Assumptions: How to correctly model this

https://www.creconsult.net/market-trends/mastering-year-1-assumptions-in-real-estate-underwriting/

Sequence 3

WHAT IS MY PROPERTY WORTH?
Be informed about the value of your property before you make a major decision!
Contact us to discuss:
Broker: Randolph Taylor
Multifamily Investment Sales Broker - Chicago
eXp Commercial | National Multifamily Division
(630) 474-6441 | rtaylor@creconsult.net
https://www.creconsult.net/home-chicago-multifamily-brokerage/request-valuation/

What to Watch in 2024: Multifamily Outlook Offers Demand the Chance To Match Supply

Slowing Completions Would Be a Welcome Relief, but Pipelines in Most Sun Belt Markets Could Be Elevated

After hitting a 40-year high for completed units in 2023, the U.S. multifamily market is expected to see a 25% pullback next year, which should help balance out the market.

Roughly 590,000 units were completed last year, according to CoStar data, though only 444,000 units are projected to come on line in 2024. While this easing of new builds would likely be well-received by owners and property managers, it is still more than the five-year, pre-pandemic annual average of 360,000 units.

The projected slowing in completions would come none too soon given that the past two years of construction outpaced demand by 607,000 units, pushing the national vacancy rate up from 4.8% to 7.6%. Yet if absorption—the difference in move-ins versus move-outs—continues to rise as it has throughout 2023, and with the 2024 delivery schedule slowing, the multifamily supply-demand imbalance could move toward equilibrium.

Dallas-Fort Worth will likely win the crown for most units completed in 2024 for the second year in a row. With more than 27,000 new units forecast to be finished, Dallas-Fort Worth is expected to see 6,000 more units than second-place New York.

However, the big takeaway from the list of the highest number of units completed this year remains the elevated supply coming on line in markets already awash in units. Atlanta, Georgia; Austin, Texas; Charlotte, North Carolina; and Phoenix, Arizona, are all projected to see between 14,000 and 16,000 new units open during 2024. While those numbers are down for these markets except for Charlotte, compared with last year’s totals, it makes for difficult conditions when all four markets are already experiencing double-digit vacancy rates.

Another noteworthy observation reveals that, despite having a population close to 10 million in both Los Angeles and Chicago, these two major markets are projected to introduce fewer than 8,000 units each in 2024. Los Angeles and Chicago also have vacancy rates under 6%, which is below the national rate of 7.6%.

As a percentage of inventory, markets in the Sun Belt have taken the lead in terms of new completions. Eight of the top 10 markets growing their inventories are in the Sun Belt.

Charlotte leads the pack, with North Carolina's biggest city expected to expand its inventory by 7% this year. That is three times the national rate of 2.3%.

Overall, 13 out of 14 major Sun Belt locations have completions-to-inventory ratios above the national average, with Houston, at 2.1%, being the lone exception.

Most of the markets below the 2.3% national average are in the Midwest or on the West Coast. These markets are likely to be the best positioned to take advantage of expected stronger multifamily demand, as their smaller construction pipelines could push rent growth higher than most in 2024.

After three years of the national multifamily supply rising each year, 2024 may offer the nation a chance to catch its breath. However, not all markets will be able to take advantage of slowing completions if their pipelines remain elevated, as that could limit any upward movement in rent growth.

Source: What to Watch in 2024: Multifamily Outlook Offers Demand the Chance To Match Supply

https://www.creconsult.net/market-trends/2024-multifamily-outlook/

Sequence 2

WHY SHOULD I SELL MY MULTIFAMILY PROPERTY?
There are Several Reasons Why People Do Sell:
Problems | Opportunities | Changes
I Don't Want to pay Capital Gains Tax!
There are a Number of Ways to Defer or Minimize
Contact us to discuss:
Randolph Taylor
Multifamily Investment Sales Broker - Chicago
eXp Commercial | National Multifamily Division
(630) 474-6441 | rtaylor@creconsult.net
https://www.creconsult.net/

U.S. Multifamily Market Faces Challenges Ahead

After two years of stellar growth, rents decelerated in 2023, despite demand still at strong levels thanks to a resilient economy. The 2024 Multifamily Outlook from Yardi® Matrix anticipates a year of challenges, including slowing national rent growth. National rent growth moderated to 0.4 percent year-over-year through November 2023, up from a combined 23.5 percent in 2021 and 2022. Absorption stabilized at 300,000 apartment units in 2023, compared to 600,000 in 2021 and 200,000 in 2022. Yardi Matrix expects that rent growth and occupancy will be heavily tested next year. Of the 1.2 million apartment units under construction at the start of 2024, 510,000 are expected to be delivered by the end of the year, the highest number in decades. We expect demand for multifamily to remain healthy in 2024, but headwinds that include slower job growth, increasing supply, and waning affordability in some markets will keep rent growth restrained again," state analysts, forecasting a tepid 1.5 percent rent growth nationally. The 2024 forecast calls for Midwest metros to lead rent growth and the Sunbelt and West markets to continue to experience in-migration from the coasts, both by residents and businesses. Sunbelt markets such as Austin, Nashville, Charlotte, and Orlando are already seeing stalling rent growth, and despite robust population and job growth, they boast high levels of new supply, which will further suppress rents. On the investment front, already down by 70 percent year-over-year, multifamily sales will likely remain sluggish in 2024 due to the impact of interest rates and pricing uncertainty. Gain more insights in the latest U.S. Multifamily Outlook from Yardi Matrix.

Source: U.S. Multifamily Market Faces Challenges Ahead

https://www.creconsult.net/market-trends/2024-multifamily-forecast/

Freddie Mac Outlook for 2024: Moderate Growth

Highlights of the forecast include an uptick in average rent and as much as $380 million in deal volume.

 

Top and Bottom 10 Metros by Gross Income Growth for 2024. Image courtesy of Freddie Mac

The overall long-term picture for multifamily remains positive, but Freddie Mac’s Multifamily 2024 Outlook notes that there are still some short-term headwinds to contend with in the coming year. These include high supply and pressure on rent growth in some parts of the country, like the Sun Belt and Mountain West regions. As the economy moves from an uncertain 2023 into 2024, Freddie Mac states there should be more stabilized cap rates and property values. This trend could help drive transaction volume. Freddie Mac Multifamily expects volume growth to return next year, up to the $370 billion to $380 billion range. While that is well below the post-pandemic years of 2021 and 2022, it would be similar to the 2019 volume. The outlook projects an expected gross income growth of 2.1 percent for the year ahead. While demand is expected to remain positive, it will likely be weaker than pre-pandemic rates. Rent is expected to increase by 2.5 percent, slightly below the annual average from 2000 to 2002. However, in some regions and markets where supply is higher, rents dropped in 2023. The Sun Belt and Mountain West areas had some of the nation’s highest levels of new supply at 3 percent and 4 percent, respectively, causing rents to decline 1.4 percent and 0.5 percent, respectively.

Construction and supply

The construction pipeline is expected to be robust in 2024, with just under 1 million units being built and most of them delivered in the new year. However, some timelines will extend into 2025 due to construction delays, which is likely to prolong the impact elevated supply has had on multifamily performance. Despite a busy year for deliveries, vacancy rates are expected to remain relatively stable, resulting in stabilized cap rates and property values, according to the report. The vacancy rate for 2024 is forecast at 5.7 percent, 40 basis points higher than the 2000–2022 average.

Annual Supply as a percentage of Current Inventory and YoY Rent Growth. Image courtesy of Freddie Mac and The RealPage

Markets with the highest supply ratio are Salt Lake City; Nashville, Tenn.; Austin, Texas; Charlotte, N.C.; and Colorado Springs, Colo. They are all expected to have a new supply ratio of 5.5 percent or higher. Markets with the lowest new supply ratio are projected to be Tulsa, Okla.; Rochester, N.Y.; Long Island, N.Y.; Syracuse, N.Y.; and New Orleans, which will have a new supply ratio of 0.4 percent or less. The outlook notes that overall market performance will feel slow, especially when compared to the pandemic boom years and even the years prior to the pandemic beginning in 2020. In general, though, slower-moving secondary or tertiary markets are generally expected to perform better in 2024.

Interest rates are unchanged but high

As the year ends, economic conditions appear to be moderating, and there may be a soft landing after all. The outlook expects job, wage, and GDP growth to slow but remain positive and inflation to continue to decrease. However, Sara Hoffmann, director of multifamily research at Freddie Mac, said in a prepared statement that there may still be a bit of a bumpy road throughout the next year, including continued higher interest rates. While it appears the Federal Reserve has finished raising interest rates this cycle, many economists expect the higher-for-longer interest rate environment to continue throughout 2024. When the Federal Open Market Committee held its final meeting of 2023 last week, the Federal Reserve left interest rates unchanged for the third consecutive meeting after a year of steep increases. It’s unclear when rate cuts may come. Also cause for concern for investors, the 10-year Treasury rate changes have been volatile in recent months. The report notes it moved between 3.5 percent and 4 percent for the first half of 2023, then increased and peaked at nearly 5 percent in October. The rate has been just under 4 percent so far this week. The report notes that any additional cap rate increases will put downward pressure on property values. While the rate of property value decline slowed in the second and third quarters of 2023, valuations have declined 13.3 percent since the peak in valuations in the second quarter of 2022.

Source: Freddie Mac Outlook for 2024: Moderate Growth

https://www.creconsult.net/market-trends/2024-multifamily-market-forecast/

Chicago's Suburban Multifamily Market: Investor Insights

Chicago's Suburban Rental Market: A Hidden Gem for Investors

The State of Suburban Rentals in the Windy City

Amid a nationwide trend of cooling rents, Chicago's suburban multifamily market stands as a testament to stability and growth. While the national median rent has seen a slight decrease, Chicago's suburbs offer a unique allure to both renters and investors.

Market Insights from Industry Experts

Danielle Hale, chief economist at Realtor.com, acknowledges a multifamily building boom in select regions, which has kept rents in check. However, the robust demand in Chicago's suburbs defies this trend because more people are choosing suburban living because of its convenience and affordability.

Chicago's Suburban Appeal

Contrary to the national narrative, rents in Chicago's suburbs have maintained their upward trajectory, appealing to a diverse demographic of renters and positioning investors for success in a market characterized by its resilience.

The Investment Advantage in Chicago's Suburbs

The unique market conditions of the Chicago suburbs, including lower unemployment rates and a consistent demand for rental properties, provide fertile ground for multifamily property investments, outshining the volatile urban rental landscapes.

Contact Us:

"Discover the advantages of investing in Chicago's thriving suburban multifamily market. With steady demand and favorable economic conditions, now is the time to diversify your real estate portfolio. Contact us to learn how you can capitalize on these suburban investment opportunities."

Source: Here’s where the price of rent is dropping in the US

https://www.creconsult.net/market-trends/chicago-suburban-multifamily-investor/

Maximize CRE Insights with Moody's Analytics

[row] [col span__sm="12" divider="0"]

Maximize CRE Insights with Moody's Analytics

Discover Moody's Analytics CRE's economic data benefits on Feb 29. Essential for Chicago's multifamily investors.

Thursday, February 29th, 2024 | 2:00 PM EST | 11:00 AM PST

REGISTER

 

eXp Commercial is excited to showcase the invaluable asset Moody's Analytics CRE brings to our technology suite, offering unparalleled economic data and insights. This is particularly beneficial for our multifamily division focusing on the vibrant Chicago market. Our affiliation with Moody's Analytics CRE underscores our commitment to providing clients with a decisive competitive edge.

Special Webinar Invitation:

We warmly invite you to attend a unique webinar on Thursday, February 29th, at 11 a.m. PT / 2 p.m. ET, hosted by the esteemed economists at Moody's Analytics CRE. This session promises to unravel the complex fabric of the 2023 CRE trends, offering a clear perspective on their implications for the future, with a special emphasis on the multifamily sector in Chicago.

Webinar Highlights:

• In-depth Analysis of 2023 CRE Trends: Delve into the most recent data and its implications for the market.
• Forward-looking Market Predictions: Gain expert insights into the potential direction of the market.
• Impact of Federal Monetary Policy: Understand the potential effects of anticipated policy shifts on investment strategies.

The Importance of Attendance:

This webinar is an essential resource for stakeholders in the Chicago multifamily market. Moody's Analytics CRE's economic data is a powerful tool that can refine and enhance your investment strategy, aligning it with the latest market developments and forecasts.

eXp Commercial's Role:

The economic data provided by Moody's Analytics CRE is integral to our tech stack, equipping our clients with the insights needed to navigate the market successfully. This event epitomizes the strategic advantage our clients gain through access to high-quality economic and market information.

Call to Action:

Don't miss this opportunity to elevate your understanding of the multifamily CRE market in Chicago. Register for the webinar today to benefit from Moody's Analytics CRE's economic data. Let eXp Commercial assist you in leveraging these insights for the success of your investment portfolio.

Please note: Registration will close 24 hours prior to the start of the live event.

REGISTER

 

Thursday, February 29th, 2024 | 2:00 PM EST | 11:00 AM PST

 

[row_inner h_align="center"] [col_inner span__sm="12" align="center"] [/col_inner] [/row_inner] [/col] [/row] https://www.creconsult.net/events/moody-analytics-cre-insights-webinar/

Multifamily Property Sales in Naperville and Aurora | eXp Commercial

Maximizing Your Success in Multifamily Property Sales in Naperville and Aurora

Introduction

Achieve unparalleled success in multifamily property sales in Naperville and Aurora with the strategic expertise of Randolph Taylor and the eXp Commercial team. Our dedicated approach ensures your property stands out in the competitive market. Discover innovative sales strategies on eXp Commercial's website and see how we can elevate your property's profile.

Why eXp Commercial is Your Ideal Partner

Tailored Expertise for the Naperville and Aurora Markets Randolph Taylor brings unparalleled insights into the multifamily property landscape of Naperville and Aurora. Leveraging his extensive experience, we position your property for maximum exposure and optimal sales outcomes. Dive deeper into our market analysis techniques here.

Comprehensive Marketing Strategies At eXp Commercial, we don't just list your property; we launch it. Our comprehensive marketing strategies ensure your listing reaches a wide, qualified audience. From digital marketing to traditional advertising, we cover all bases. Learn about our unique approach here.

The eXp Commercial Advantage

Our commitment to your success is unmatched. Partnering with us means gaining access to cutting-edge tools, detailed market insights, and a team that's dedicated to achieving the best possible outcome for your multifamily property sale in Naperville and Aurora.

Conclusion

Don't leave your multifamily property sale in Naperville and Aurora to chance. Let Randolph Taylor and the eXp Commercial team guide you to success. Our expertise, tailored strategies, and unwavering dedication are the keys to unlocking your property's potential.

[row v_align="middle" h_align="center"] [col span__sm="12" align="center"] [button text="Schedule Call" color="secondary" size="large" radius="99" link="https://meetings.salesmate.io/meetings/#/expcommercial/scheduler/call" target="_blank"] [/col] [/row] https://www.creconsult.net/market-trends/multifamily-property-sales-in-naperville-and-aurora-exp-commercial/

Sequence 1

CHICAGO MULTIFAMILY BROKERAGE
No Matter Where You Are In The Investment Cycle
We Can Help You!
A Commercial Real Estate Brokerage firm specializing in listing and selling
multifamily properties in the Chicago metropolitan area.
Randolph Taylor
Multifamily Investment Sales Broker - Chicago
eXp Commercial | National Multifamily Division
(630) 474-6441 | rtaylor@creconsult.net
https://www.creconsult.net/

2024 Real Estate & 1031 Exchange Insights

Read the full press release for our February 21 online event centered around 1031 exchange strategies for 2024.

A lot of excitement is building for JTC’s February 21 webinar, “1031 in 2024: Strategies for Real Estate Investing.” Featuring a panel of expert speakers from the worlds of 1031 and real estate, including JTC’s Justin Amos and Shanaé Mabrie along with Simon Brower of Upstream 1031 and James Huang of eXp Commercial, this unique online event will focus on the challenges of the real estate market in 2024.

It’s been a difficult few years in the world of commercial real estate, with high prices, a lack of inventory, inflation, and recessionary fears all adding to the confusion. Property owners may be unsure if a 1031 exchange is feasible in this environment and what strategies could give them a leg up, which is why the webinar is attracting a lot of interest.

In the full press release, you can read about the webinar details, including discussion topics, how to sign up, and what’s being said about this exciting event. Those looking for answers on what the market is going to look like in 2024 and how to perform a successful exchange in a competitive environment won’t want to miss this opportunity.

To read the press release

click here

https://www.creconsult.net/events/2024-real-estate-1031-webinar/

Chicago's Office-to-Apartment Boom: Insights & Trends

It’s a growing trend as the office market continues to struggle across the country: developers are turning outdated office space into apartment units. But how strong is this trend in Chicago? Very, according to new research from RentCafe.

In its latest adaptive reuse report released at the end of January, RentCafe said that Chicago ranks fourth in the country in the number of office-to-apartment conversions now underway. The Chicago market trails only Washington, D.C., New York City and Dallas in the number of conversions.

According to RentCafe, Chicago is set to bring 2,822 new apartment units to the market by converting old office spaces into multifamily. Office-to-apartment projects account for 55% of all conversions underway in the Chicago market. Conversions from office to retail stores make up 10.3% of Chicago-area conversion projects, while community centers account for 9.36%.

Many of the office-to-apartment conversion projects in Chicago are significant ones, too. A conversion from office to multifamily at 135 S. LaSalle St. will bring 430 new apartment units to the city. That ranks as the largest office-to-apartment conversion underway.

Other major office-to-apartment conversions include Bell Works Chicagoland, which will bring 375 new multifamily units to the Chicago market, and 30 N. LaSalle St., which will add 349 units.

This isn’t surprising to anyone who’s been following the multifamily and office sectors.

Demand for multifamily housing is on the rise and has been for years. There simply aren’t enough apartment units available to meet the number of renters searching for multifamily space.

At the same time, the demand for office space among companies has dipped thanks largely to the large number of employees who are still working at least part of the time from home. Add to that the demand that many companies now have for higher-quality office space, and the country is left with many older office buildings that are no longer in demand in today’s market.

Converting these spaces into apartment units makes sense. The challenge, of course, is that conversions can be expensive, sometimes too expensive for them to make financial sense. And many office buildings don’t work for conversions because of their location and structural issues.

Chicago isn’t alone in seeing a rise in office-to-apartment conversions. In Washington, D.C., conversions now underway are expected to 5,820 new apartment units, while that number stands at 5,215 in New York City and 3,163 in Dallas.

In Cleveland, conversions underway are expected to bring 2,012 new apartment units, while in Kansas City, Missouri, they are expected to add 1,510 new multifamily residences to the market. That number stands at 1,334 in Minneapolis, 1,070 in Detroit, 1,006 in Columbus and 911 in Milwaukee.

RentCafe reported that from 2021 to 2024, the number of apartments scheduled for conversion from old office spaces increased from 12,100 to 55,300 nationwide.

https://www.creconsult.net/market-trends/office-to-apartment-conversions-chicago/

eXp Commercial Adds Moody's Analytics CRE

eXp Commercial continues to build its stable of tools and resources to help its advisors, and the latest addition is Moody’s Analytics CRE. 

Moody’s Analytics CRE will offer integrated insights, analytics, and enriched data to eXp Commercial’s advisors through its trusted, validated data, dynamic analytics, and extensive research programs. Moody’s Analytics CRE helps institutions gain efficiencies and drive growth in CRE.

How eXp Commercial, Advisors, and Clients Can Benefit:

• Access to valuable analysis by Moody’s CRE experts who interpret and analyze data, providing performance indicators such as loan analysis, location scoring, trends, forecasts, and economic narratives to improve decision-making. 
• Utilization of Moody’s Analytics CRE, accessing in-depth data and analytics from markets across the U.S. This enables advisors to delve into real-time local supply and demand, staying ahead of trends with customizable forecasting tools.
• Leveraging Moody’s Commercial Location Score, which is a proprietary model to determine the value of any given commercial location in the U.S. It is designed as a means to consistently evaluate a location’s suitability and desirability for a particular use case.
• Use of Moody’s Analytics CRE property-centric platform with 8+ million commercial real estate properties and historical sales comps in the U.S., all researched and verified by humans with detailed property characteristics and granular space-level data. 

Source: eXp Commercial Adds Moody’s Analytics CRE

https://www.creconsult.net/market-trends/exp-commercial-adds-moodys-analytics-cre/

2024 Multifamily Insights: Aurora/Naperville

Aurora/Naperville's 2024 Multifamily Market Overview

As we delve into the Aurora/Naperville multifamily market for 2024, a landscape of evolving opportunities emerges for investors. Key insights reveal a slight decrease in asking rents to $1,823 and a vacancy rate adjustment, presenting a nuanced but optimistic outlook for the sector.

Market Dynamics and Opportunities

• Rental Trends: The Aurora/Naperville multifamily market experiences subtle rent adjustments, reflecting the market's responsiveness to current economic conditions.
• Vacancy Insights: A modest increase in vacancy rates indicates a moment of recalibration, offering strategic entry points for investors.
• Growth Projections: With new units slated for delivery, the market is poised for balanced growth, highlighting the steady demand for multifamily living spaces.

Investment Strategies for Success

Furthermore, navigating these market conditions requires a tactical approach:

• Market Analysis: Continuous monitoring of rent and vacancy trends will enable informed investment decisions.
• Strategic Positioning: Adapting to market shifts can uncover competitive advantages for property owners.
• Future Planning: Anticipating market demands and aligning investment strategies accordingly will be crucial for long-term success.

Engage with eXp Commercial Multifamily Brokerage

Partner with eXp Commercial Multifamily Brokerage to leverage our market expertise and strategic insights. Whether evaluating potential sales or seeking guidance on investment opportunities, our team is here to support your goals in the Aurora/Naperville multifamily market.

Take Action

• Explore In-Depth Market Insights: For a comprehensive understanding of the 2024 market forecast, request our full report.
• Get a No-Cost Valuation: Assess the potential of your investment with our expert analysis.

The Aurora/Naperville multifamily market in 2024 presents a dynamic arena for investors. By embracing strategic planning and leveraging expert insights, property owners can navigate this landscape to optimize their investment outcomes.

https://www.creconsult.net/market-trends/aurora-naperville-2024-multifamily-insights/

Fully Occupied Multifamily Property Plus Commercial Unit Joliet IL

   

  301 S Ottawa St Joliet, IL 60436

Listing Price: $450,000

[gallery gss="1" type="columns" columns="1" size="large" display="sliderauto" captions="hide" link="file" ids="116605,116606,116607,116611,116610,116609,116590,116597,116595,116596,116594,116591,116592,116587,116589,116588,116600,116603,116602,116601,116604,116598,116599,116608"]

[table] Cap Rate, 9.25% Number of Units, 6 GRM, 7.51 Occupancy, 100% Price/Unit, $75000 Price/Gross SF, $102.27 Gross SF, 4400 [/table]

Download Offering Memo

Investment Highlights

• Fully-Occupied, Five-Unit Multifamily Property and Commercial Unit (Salon)
• New Roof, Electrical Service, Gas Service, Furnace, and Hot Water Tank
• Renovated Units, Exterior Paint, and Off-Street Parking Lot Replacement
• Low Property Taxes and Tenant Paid Gas Heat
• Located in Joliet, the Fourth-Largest City in Illinois
• Unit Mix of Studio, One-Bedrooms, Two-Bedroom, Three-Bedroom and a Commercial Unit

Map Overview

Investment Overview

Marcus & Millichap is proud to present to market two adjacent, fully-occupied buildings on one parcel, consisting of five multifamily units plus a commercial unit (salon). Each tenant pays separately metered gas heat; combined with low taxes and current market rents provides a healthy return for a smaller investment property.​ A number of very recent capital improvements have been completed including, but not limited to new roofs, upgraded electrical service, gas service, one of two new furnaces and hot water tanks, exterior painting, and off-street parking lot replacement.​ The unit mix consists of one studio, two one-bedrooms, one two-bedroom, one three-bedroom, and one small recently renovated commercial space occupied by a salon.​ Each unit has been partial to fully renovated, is on an annual written lease agreement, and current on their rents as of the drafting of this offering memorandum.​ The property is situated in Joliet, Illinois, approximately 30 miles southwest of Chicago.​ The property is just south of central downtown Jolie t with convenient access to public transportation, local shopping, and public services.​ Jolie t is the county seat of Will County and is the fourth-largest city in Illinois.​ The largest employers in the area include Amazon, AMITA Health Saint Joseph Medical Center, and Will County.​

 

https://www.creconsult.net/listings/fully-occupied-multifamily-property-plus-commercial-unit-joliet-il/

New Listing 10-Unit Value-Add Multifamily Property For Sale Blue Island IL

  2149-2151 W 119th St Blue Island, IL 

 SOLD!

Investment Highlights

• Fully Occupied Ten Unit Multifamily Offering
• Value-Add Investment Opportunity, Below Market Rents
• Month-to-Month Lease Offering Flexibility to Renew, Re-let, Renovate
• Off-Street Parking, Storage and Laundry Facility

Map Overview

 

Investment Overview

Marcus and Millichap is pleased to present to market this fully occupied 10-unit value-add multifamily offering in Blue Island, Illinois, a southern suburb of Chicago. The property consists of two adjacent 5-unit brick apartment buildings each containing four one-bedroom units and one two-bedroom unit. Amenities include off-street parking, storage units, and on-site laundry in each building.

Each unit has written month-to-month leases offering the flexibility to retain these tenants, renew or renovate and release at higher market rents as each unit is approximately $150 below current market rent for the area.

The property is located approximately 16 miles south of Chicago's Loop two blocks from the 119th St Metra Station, 119th Street & Vincennes Bus Stop, and two-minutes from Interstate 57.

https://www.creconsult.net/listings/new-listing-10-unit-value-add-multifamily-property-for-sale-blue-island-il/

152 Unit Multifamily Property For Sale Victorian Apartments Montgomery IL

PRICE REDUCED!

CALL FOR OFFERS DUE tuesday MAY 5TH, 2021 @ 5Pm

Victorian Apartments

  800-834 Victoria Dr. Montgomery, IL 60538

LISTING PRICE: $14,250,000  $13,950,000

[gallery gss="1" type="columns" columns="1" size="large" display="sliderauto" captions="hide" link="file" ids="116660,116272,116273,116658,116274,116275,116304,116269,116271,116270,116657,116656"]

[table] Cap Rate, 6.13% Number of Units, 152 GRM, 8.05 Occupancy, 95% Price/Unit, $91776 Price/Gross SF, $130.13 Gross SF, 107200 [/table]

Download Offering Memo

Investment Highlights

• 152 Unit Suburban Multifamily Property
• 32 Studios, 72 One-Bedrooms & 48 Two-Bedrooms
• Clubhouse with Office, Laundry Facilities, Fitness Area, Outdoor Pool, and Courtyard
• Located in Montgomery Illinois | 40 Miles Southwest of Downtown Chicago
• Upgraded Kitchens and Baths
• Tenant Paid Electric Baseboard Heat
• Value-add component, upside in rents

Map Overview

Investment Overview

Marcus & Millichap is proud to present to market Victorian Apartments, a 152-unit apartment community located in west suburban Montgomery, Illinois bordering Kendall County to the South, the fastest growing county in Illinois, and the City of Aurora, IL to the East, the second-largest city in Illinois.

The subject property is approximately 40 miles southwest of downtown Chicago. Victorian Apartments consists of 16 two and three-story apartment buildings and clubhouse spread out over almost 10 acres; offering 32 large studios, 72 one-bedrooms, and 48 two-bedroom apartment homes. Community amenities include a clubhouse, an on-site management office, laundry facilities, a fitness area, an outdoor pool, a central courtyard area with a playground, and ample off-street parking. Each unit has separately metered, tenant paid, low maintenance, electric baseboard heating, and ac sleeve units. Units have updated kitchens and baths.

 

https://www.creconsult.net/listings/152-unit-multifamily-property-for-sale-victorian-apartments-montgomery-il/

Multifamily Property Sales in Naperville and Aurora | eXp Commercial

Maximizing Your Success in Multifamily Property Sales in Naperville and Aurora

Introduction

Achieve unparalleled success in multifamily property sales in Naperville and Aurora with the strategic expertise of Randolph Taylor and the eXp Commercial team. Our dedicated approach ensures your property stands out in the competitive market. Discover innovative sales strategies on eXp Commercial's website and see how we can elevate your property's profile.

Why eXp Commercial is Your Ideal Partner

Tailored Expertise for the Naperville and Aurora Markets Randolph Taylor brings unparalleled insights into the multifamily property landscape of Naperville and Aurora. Leveraging his extensive experience, we position your property for maximum exposure and optimal sales outcomes. Dive deeper into our market analysis techniques here.

Comprehensive Marketing Strategies At eXp Commercial, we don't just list your property; we launch it. Our comprehensive marketing strategies ensure your listing reaches a wide, qualified audience. From digital marketing to traditional advertising, we cover all bases. Learn about our unique approach here.

The eXp Commercial Advantage

Our commitment to your success is unmatched. Partnering with us means gaining access to cutting-edge tools, detailed market insights, and a team that's dedicated to achieving the best possible outcome for your multifamily property sale in Naperville and Aurora.

Conclusion

Don't leave your multifamily property sale in Naperville and Aurora to chance. Let Randolph Taylor and the eXp Commercial team guide you to success. Our expertise, tailored strategies, and unwavering dedication are the keys to unlocking your property's potential.

[row v_align="middle" h_align="center"] [col span__sm="12" align="center"] [button text="Schedule Call" color="secondary" size="large" radius="99" link="https://meetings.salesmate.io/meetings/#/expcommercial/scheduler/call" target="_blank"] [/col] [/row] https://www.creconsult.net/market-trends/multifamily-property-sales-in-naperville-and-aurora-exp-commercial/

Maximize Returns with Top Aurora & Naperville Multifamily Brokers

Maximize Returns with Top Aurora & Naperville Multifamily Brokers

The multifamily real estate market in Aurora and Naperville presents unique opportunities for property owners. Our latest report, crafted by distinguished Aurora and Naperville apartment building brokers, offers essential insights for those looking to navigate this competitive landscape.

What you'll discover:

• Rent Trends: How does your property compare in the current market?
• Vacancy Insights: What the latest figures mean for your strategy.
• Market Growth: Identifying Opportunities Amidst the Competition.

As trusted brokers specializing in the Aurora and Naperville multifamily markets, we bring unmatched expertise to the table. Our analysis is tailored for owners ready to maximize their investment through strategic listing and selling.

Why download our report?
Gain a competitive edge with our in-depth analysis and make informed decisions that could significantly impact your property's market performance.

Call to Action:
Don't miss out on leveraging your multifamily property's full potential. Download our comprehensive Aurora and Naperville market report today.

[row v_align="middle"] [col span__sm="12" align="center"] [button text="Request Report" color="secondary" radius="99" link="https://expcommercial.salesmate.io/webforms/#/71c9877f-e71b-48a9-988f-0c58a8524c56" target="_blank"] [/col] [/row] https://www.creconsult.net/market-trends/maximize-returns-with-top-aurora-naperville-multifamily-brokers/

Cost Set Deadline

Cost Segregation Deadlines: Tax Year 2023
A reminder to our clients with acquisitions in 2023 or who have made improvements to their property in 2023: you can benefit from a Cost Segregation Study to substantially increase your tax deductions.
The deadline for this with our national partners is 2/29/2024.
Please contact us to make a request before it is too late!
https://www.creconsult.net/partners/

eXp Commercial Launches Commercial Real Estate Specialty Committees

eXp Commercial continues to build and refine its tools and offerings and is launching product specialty committees designed to help its agent advisors continue to get support specific to their particular field of concentration in commercial real estate.

The committees will include specialties such as:

• Farm/Ranch/Land
• Retail Sales
• Corporate Services
• Net Leased
• Asset/Property Management
• Hospitality
• ESG
• Multi-Family
• Mobile Home, RV Parks, and Self Storage
• Business Brokerage
• Leasing: All Types
• Medical
• Industrial
• Office
• Church/Worship/Non-profits
• Capital Markets and Debt
• Global Commercial

Committees Will Meet Monthly

The list above serves as evidence that commercial real estate differs significantly from residential real estate in that it can accommodate a variety of commercial transactions. For example, even within the multi-family category, there are sub-categories such as senior housing and university housing. By setting up committees geared to each specialty, eXp Commercial agents can help each other navigate nuances or situations within each commercial type

The peer-to-peer mentoring will allow agents and brokers to share their goals and challenges with a group that understands the unique aspects of commercial real estate and the product specialty. The committees will meet monthly via Zoom.

Advisors will gain support and valuable insight into their specialty. As many in the industry can attest, no deal is ever straightforward. Being part of these committees is sure to yield surprising insights as well as develop valuable connections.

Benefits include:

• Networking: Group members will provide advisors with resources and make introductions to help grow their businesses.
• Business Growth: Groups will provide valuable feedback and helpful advice that can be used to increase revenues, reduce expenses, and be better positioned for future opportunities.
• Synergy: Simply put, being around other driven, passionate entrepreneurs who are excited about their growth potential will be super-energizing for everyone involved.

 

Source: eXp Commercial Launches Specialty Committees

https://www.creconsult.net/market-trends/exp-commercial-launches-specialty-committees/