CHICAGO, IL– The Kiser Group just announced that the firm has been retained for three properties in suburban Chicago: 515-519 S. Milwaukee Ave. in Wheeling (56 residential units); 2137 S. Lombard Ave. in Cicero (multi-tenant office, retail, entertainment) and 15-17 N. Vail Ave. in Arlington Heights (16 residential units and two commercial spaces).
Company officials are optimistic about economic conditions in the region and believe that will attract buyers.
“Suburban multifamily and mixed-use properties are in high demand by investors,” said Lee Kiser, principal of Kiser Group, in a prepared statement. “Apartment rents have been rising steadily as there's been a shift away from owning to renting, and the limited supply can't keep up with this demand. Multifamily led the pricing recovery, but now we're seeing investor momentum spread to office, industrial and even retail due to improved economic conditions and more liquidity in the marketplace.”
Kiser noted that sales volume of commercial real estate in the Northwest suburbs reached $206.1 million in 2012, nearly doubling the previous year's total of $111.5 million.
Other researchers agree with Kiser's analysis. In their report on last year's final quarter, Colliers International said that the Northwest suburban office market was once the weakest in the suburbs, but “showed the greatest improvement in 2012.” The sales of industrial space was “impressive” and “an incredible amount of user demand captured during the year kept market conditions in balance.”
River Trail Apartments, 515-519 S. Milwaukee Ave., Wheeling, is a three-story, 56-unit brick building with on-site parking abutting the forest preserve next to the Des Plaines River. It is listed for $5,250,000.
“There's enormous upside potential for investors as rents are substantially below market,” said Brian Mond, managing director of Kiser Group, who will market the Wheeling listing. “With improvements in management, the new owner should realize double-digit returns on this investment.”
15-17 N. Vail Ave., a three-story, 18-unit brick corner building, is located directly across the street from the Metra station in the center of downtown Arlington Heights. This property is listed at $2,850,000.
The building has 16 one-bedroom apartments and two commercial spaces, the latter two occupied by the La Tasca and Bangkok Café restaurants. The property includes a full basement level with additional storage areas and laundry facilities for the tenants.
“This is a very stable investment opportunity,” said Mond. “The retail tenants have leased there since 2008, and commuters consistently keep the apartments rented.”
Finally, Kiser has The Olympic Building, 2137 S. Lombard Ave., in Cicero. It has the 1,400-seat Olympic Theatre, which hosts live performances, and a mix of retail, restaurant and medical offices. It also has long-term leases for cell phone towers on the roof. The listing price is $3,100,000.
“There are a variety of professional tenants in the building, which is 82 percent leased,” said John Meyer, managing director of Kiser Group, who will market this listing. “An investor can easily increase cash flow by leasing the 13,434 square feet of vacant space, which has been well maintained and is ready to rent.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
