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Multifamily Sales Volume Heads for Record

CHICAGO-Appraisal Research Counselors tracks $379 million in sales for larger multifamily rental buildings through the third quarter, with as much as $472 million possible from the sale of eight other buildings under contract or on the market.

By Mark Ruda | Updated on December 01, 2004

CHICAGO-Sales volume for larger multifamily rental buildings is on pace to set a record this year, according to Appraisal Research Counselors. The appraisal firm reports $379 million in sales through the third quarter, which would be second only to 2000 if no other deals closed.

However, the firm’s most recent “Downtown Chicago Residential Benchmark Report” notes two buildings, 440 N. Wabash Ave. and 222 N. Columbus Dr., are under contract for an estimated $242 million combined, while six more buildings are on the market. At the same time, capitalization rates are rivaling 2000, at 6.69%, according to Appraisal Research Counselors, with the properties on the market being offered at an average cap rate of 5.30%.

“There continues to be plenty of cash chasing apartments,” according to the report co-authored by vice presidents John R. Jaeger and Gail L. Lissner. They add those holding the cash continue to be familiar players.

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