Just Sold Amber Ridge Apartments & Indian Creek Apartments Aurora IL

 

Just Sold!

Aurora, IL, December 6th, 2021 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of two adjacent 24-unit apartment properties located in Aurora, IL, according to Steven D. Weinstock, regional manager and first vice president of the firm’s Chicago Oak Brook office. The assets, Amber Ridge Apartments and Indian Creek Apartments, sold for $1,850,000 and $1,885,000 respectively.

The sellers and buyer of both properties were secured and represented by Randolph Taylor, Senior Associate, and an investment specialist in the National Multi Housing Division in Marcus & Millichap’s Chicago Oak Brook office.

The properties are located at 1015 N Farnsworth Ave and 991 Tollview Ave in Northeast Aurora, IL. The properties were sold to a repeat buyer for the agent and the firm and were financed by the Marcus & Millichap Capital Group. 

 

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About Marcus & Millichap (NYSE: MMI)

With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8.954 transactions in 2021 with a value of approximately $43.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

 

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https://www.creconsult.net/market-trends/just-sold-amber-ridge-apartments-indian-creek-apartments-aurora-il/

How Was Commercial Real Estate Sales Activity in 2021?

 

How does transaction velocity in 2021 compare to past years?

What's driving such aggressive investment activity?

How does sales volume vary by property type?

 

 

https://www.creconsult.net/market-trends/how-was-commercial-real-estate-sales-activity-in-2021/

CRE Is Outperforming Amid Rising Inflation

 

CRE prices have increased considerably this year, up 12.7% in Q3 compared to 2019.

Commercial real estate prices have increased measurably this year delivering positive results for investors, John Chang, Senior Vice President and National Director Research Services at Marcus & Millichap said in a recent video.

In the third quarter CRE sales are up 12.7% over 2019 and the preliminary data for the fourth quarter look promising, he pointed out.

While pundits and consumers are worried headline inflation has risen to 6.2% compared to 1.3% a year ago this month, Chang said in times like this when inflation pressure is elevated, CRE can outperform.

“Commercial real estate is a long investment,” he stressed.

Speaking to the strength of CRE currently, the Marcus & Millichap research leader said self-storage property transactions have surged by 56% in the third quarter of this year compared to the third quarter in 2019 with hospitality deals up 46% and industrial property transactions up 17.4% while apartment sales are up 15.4%.and retail up 7.9%

The only property transaction lagging is office, down 4.6% from 2019.

Industrial has been an investor darling throughout the pandemic, with prices increasing steadily among booming demand for space. More than $100 billion has been spent on industrial properties this year, according to Real Capital Analytics, and the asset class saw the fastest annual and monthly price upticks of all sectors at 18.9% in October from a year ago and 1.9% from September.

“Investors are purchasing these properties based on rising demand driven by e-commerce and supply chain disruptions,” said Chang. “But even though industrial absorption is at a record level, so is construction, and new development could ultimately bypass demand.”

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Source: CRE Is Outperforming Amid Rising Inflation

https://www.creconsult.net/market-trends/cre-is-outperforming-amid-rising-inflation/

The U.S. Apartment Market Continues to Tighten

 

U.S. apartment leasing activity normally slows as the weather cools late in the year. In turn, occupancy tends to backtrack a bit, and property owners cut move-in lease prices a little. However, 2021 hasn’t been a normal year for the rental housing sector, and an outperformance relative to historical standards continues to register as the year winds down.

RealPage, Inc. information shows apartment occupancy hitting a new all-time high of 97.5% in November. Occupancy is now up a notable 250 basis points or so from the long-term norm of roughly 95% establish over the course of the past three decades.

Effective asking rents for new move-in leases reached a national average of $1,631 in November.

November’s pricing was up 0.4% from the October figure. While that increase is well below the monthly rent growth seen in the spring and summer months, any bump at all is a big deal since prices normally are cut in October, November and December.

The annual increase in effective asking rents for move-in leases reached 13.9% in November, climbing at an all-time record pace. Renewal lease rent growth, reflecting the price change experienced when a household opts to stay in place at the end of an initial lease, usually climbs more slowly than when there’s turnover in a unit’s occupant. Renewal lease rent growth has been hovering around the 8% mark during late 2021.

Florida Rents Are Soaring

Across the nation’s 150 largest metros, 104 of them managed to eke out at least a little monthly rent growth during November. The nation’s four strongest monthly rent increases registered in Naples, Cape Coral, North Port/Sarasota and West Palm Beach. Monthly price bumps also proved substantial in Gainesville, Lakeland and Miami. Turning to annual price shifts in the 50 largest metros, West Palm Beach, Tampa and Phoenix were on top, posting growth of 26% to 28%.

Year-over-year rent growth of more than 20% also was seen in another nine spots: Austin, Orlando, Fort Lauderdale, Las Vegas, Jacksonville, Atlanta, Salt Lake City, Raleigh/Durham and Miami. All 150 of the nation’s biggest markets posted annual increases in effective monthly rents for move-in leases.

The slowest growth rates as of November were increases of about 2% in small Youngstown, OH and Champaign/Urbana, IL. The top 50 metro with the slowest growth was Minneapolis/St. Paul, where pricing climbed 4.1% during the year-ending in November.

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Source: The U.S. Apartment Market Continues to Tighten

https://www.creconsult.net/market-trends/the-u-s-apartment-market-continues-to-tighten/

December Rent Payments at 77%

 

In its most recent survey, the National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found significantly more than three in four apartment households paid rent in full or part by early this month. The survey of 11.8 million units of professionally managed apartment properties across the country revealed 77.1 percent made a full or partial payment by December 6. The figure represents a 1.7 percentage point increase from the share who paid rent through December 6 of last year, and compares with the 83.2 percent that paid rent through December 6 as of two years ago.

“This concluding release for the NMHC Rent Payment Tracker continues a relatively stable pattern that we’ve observed since early in the pandemic, namely, apartment residents in professionally managed communities have continued to meet their housing obligations,” Caitlin Walter, NMHC vice president for research, told Multi-Housing News.

“Because of the swift efforts by property owners to support their residents early in the pandemic, significant government funds and, more recently, federal rental assistance, apartment residents continue to pay their rent,” she added.

Rent Payment Tracker. Data and chart courtesy of NMHC

Payment behavior

The data in studies in the Rent Payment Tracker encompasses a broad array of market-rate rental properties across the U.S., which can vary by size, type and average rental price. The metric furnishes insight into the changes in resident rent payment behavior over the course of each month, and, as the dataset ages, between months. Intended to serve as an indicator of resident financial challenges, the tracker also is intended to monitor recovery, including government stimulus and subsidies’ effectiveness.

The December 2021 Rent Payment Tracker data is the last to be released under the NMHC Rent Payment Tracker. Full-month December rent payment numbers will be posted on the NMHC Rent Payment webpage in January 2022.

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Source: December Rent Payments at 77%: NMHC

https://www.creconsult.net/market-trends/december-rent-payments-at-77-nmhc/

Rising Lumber Prices Are Back With a Vengeance

 

An expected détente of predictable pricing for planning purposes went elsewhere.

As recently as October, lumber prices seemed to be moving to a new sustainable norm. It seemed as though prices in the $500 to $600 range per thousand board feet might become the new normal for the next year or so.

Or so it seemed … until the middle of November, when prices again began to rise. Yesterday closed at $979.30.

“The factors that caused the rise in lumber prices earlier in the year are still at play today,” Chip Setzer, director of trading and growth at commodities platform Mickey, tells GlobeSt.com. “Weather continues to be a driving factor for both supply and demand. We’ve seen unseasonably warmer temperatures across the US which has allowed construction to continue well into the start of winter. This has allowed the demand for building materials to remain strong. Also worth noting is that interest rates remain low, which is continuing to fuel housing demands.” Canada has also seen ongoing bad weather conditions, including major flooding affecting highway systems, that delayed and even stopped many lumber shipments into the U.S.

Prices “may continue to rise to above $1,000, which was last seen in Spring 2021,” Ross Price, director of finance at Mickey, tells GlobeSt.com. “This has been driven by a combination of strong construction activity, limited supply due to labor shortages, flooding in Canada, and an announcement by the US government that it would double tariffs on Canada’s lumber.”

The tariffs had been about 9%, but just before Thanksgiving, the U.S. decided to double duties to 17.9% on Canadian softwood lumber. Softwood is the material used in such applications as framing and concrete forms.

“As a result, the cost of home prices is expected to increase, which will continue to cause issues to homebuilders,” Price continues. “At some point, demand for new housing should subside which will lower the demand for lumber and prices could potentially fall.”

The housing market’s growth has shown recent signs of slowing, although the S&P CoreLogic Case-Shiller Index has still been above the 2006 through 2019 average.

“Traditionally in Q4 we see a large push for orders to be filled prior to the holidays,” Alex Meyers, Mickey’s director of operations, says. “In export markets to Asia for example, manufacturers and distributors will take larger than normal inventory positions to ensure sufficient levels of stock are arriving prior to and after lunar new year, which typically grinds the market to a halt for 3-4 weeks.” Given existing low availability of materials and ongoing supply chain problems, “demand far outweighs available supply and prices trend up as a result.”

Call it a lump of coal in the stocking of development and construction.

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Source: Rising Lumber Prices Are Back With a Vengeance

https://www.creconsult.net/market-trends/rising-lumber-prices-are-back-with-a-vengeance/

Just Closed Victorian Apartments 152 Unit Multifamily Property Montgomery IL

 

Just Closed!

Montgomery, IL, December 15th, 2021 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Victorian Apartments, a 152-unit multifamily property located in Montgomery, IL, according to Steven D. Weinstock, regional manager and first vice president of the firm’s Chicago Oak Brook office. The asset sold for $13,500,000.

The offering was an exclusive listing of Marcus & Millichap and both Buyer and Seller were represented by Randolph Taylor, Senior Associate, and an investment specialist in the National Multi Housing Division in Marcus & Millichap’s Chicago Oak Brook office.

The property is located at 834 Victoria Drive in Montgomery, Illinois approximately 40 miles southwest of downtown Chicago. Victorian Apartments consists of 32 large studios, 72 one-bedrooms, and 48 two-bedroom apartment homes.

 

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About Marcus & Millichap (NYSE: MMI)

With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8.954 transactions in 2021 with a value of approximately $43.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors.

 

how Can We Help You?

Are you looking to Buy, Sell or Finance/Refinance Multifamily Property?

contact us

https://www.creconsult.net/market-trends/just-closed-victorian-apartments-152-unit-multifamily-property-montgomery-il/