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Developers Struggle Putting Money to Work

CHICAGO-"Staying fleet of foot" is the key to keeping Fifield Cos. busy, while Transwestern Investment Co. is finding its best deals lately coming from lenders, company officials tell the Counselors of Real Estate midyear meeting.

By Mark Ruda | Updated on April 05, 2005

CHICAGO-Capital continues to flow into commercial real estate, but at least two developers face challenges putting it to work at attractive returns and foresee choppy waters ahead. “The good news is that there’s lots of dough,” says Transwestern Investment Co.’s Erwin Aulis, whose company managed to buy 64 properties last year for $1.3 billion. His comments were all part of the Counselors of Real Estate’s midyear meeting.

“You have thinner deals,” noted Fifield Co. executive vice president Richard H. Blum, also on a panel at the meeting. “We’ve found ways to make money by staying fleet of foot and finding opportunities.”

That includes being a player in the local multifamily rental-development arena, in addition to working markets in Las Vegas, Southeast Florida and Southern California. However, Blum is bullish on Chicago, where Fifield Cos. is building the 451-unit Left Bank at Kinzie Station with Prudential Insurance Co. just northwest of the Loop. “We feel the fundamentals of the apartment market in Chicago is getting better, not worse,” Blum said.

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