CHICAGO—Marcus & Millichap just released a study on the region's burgeoning apartment market. Chicagoland employers will hire 65,000 workers this year, a 1.4% increase, according to the company. That growth, coupled with the 65,400 job gains in 2015, will help drive demand for new rental units. Developers completed more than 5,800 units in 2015, and will bring a record-breaking 8,370 rentals to market this year. The city will receive 5,270 of these, with the suburbs getting the remaining 3,100 units. M&M adds that the metro area's vacancy rate will slide 10 bps this year, reaching 3.7%. And positive net absorption of 7,200 units drove vacancy down 40 bps in 2015. Furthermore, “tightening market conditions coupled with the upswing in high-end construction will enable strong rent growth.” Following a 5.1% increase last year, the average effective rent will climb another 5.4% in 2016 to $1,380 per month.

NEWS & NOTABLES

DETROIT—Sabrina Gaddy-Bollinger, the director of public housing at Bingham Farms, MI-based FOURMIDABLE, has been elected president of the Institute of Real Estate Management, Michigan Chapter No. 5, which serves professionals in the Metro Detroit area. She has been with FOURMIDABLE since 1995, and has managed affordable housing since 1992. Gaddy-Bollinger is the first African-American woman to become president of the IREM Chapter. She has served in leadership positions with various industry and community groups and in 2013 was recognized as the IREM's accredited residential manager of the year. FOURMIDABLE specializes in managing, marketing and leasing market rate, tax credit, senior and family government assisted, public housing and rural development apartment communities.

ST. LOUIS—Sperry Commercial Global Affiliates, LLC has just added its first St. Louis affiliate, S.J. Financial Group, Inc. The firm specializes in brokerage sales and mortgage placement throughout the US and focuses on multifamily, industrial, retail and office investment sales. President Stephen V. Jacquemin started the firm in 1990. His brokerage experience includes closing more than $500 million in sales, representing numerous clients in retail, industrial, office and multifamily. He has also advised and consulted many 1031 exchange buyers and sellers. Jacquemin is currently the regional vice president of the CCIM Institute.

DEALTRACKER

KANSAS CITY—Everest Medical Core Properties has just purchased Foxhill Medical Center, a 52,000 square foot medical office building in Overland Park, KS, a suburb of Kansas City, for $9 million. The three-story building features medical and dental suites with amenities. It was renovated in 1998, and major exterior enhancements were completed in 2016. Tenants occupy 97% of the space, and the submarket overall has a vacancy rate of just 2%. “We are pleased to have developed a deep pipeline of off-market and limited market high-quality medical office buildings,” says David Lynn, chief executive officer of Everest.

BUILDING BLOCKS

BOLINGBROOK, IL—Officials from NAI Hiffman say Distribution Realty Group and F. Greek Development recently completed construction of 990 Veterans Pkwy. in Bolingbrook, IL. The 182,875-square-foot class A industrial distribution building is just minutes away from access to I-55 via the Rte. 53 or the Weber Rd. four-way interchanges. The building has 32' clear height throughout, 14 exterior docks with the ability to add positions, and an expandable 170 car parking capacity. “The ability for this project to demise and offer higher levels of car parking make it an ideal fit for this corridor and the type of tenants in the market,” says Adam Roth of NAI Hiffman. The I-55 Corridor has a vacancy rate of just 6.13% and absorbed nearly 3 million square feet in the third quarter of this year.

BY THE NUMBERS

CHICAGO—Avison Young just released a new research report that shows the added value in having a “cache tenant,” such as Amazon.com or FedEx, in a distribution facility. The company used Real Capital Analytics data through the third quarter and found Amazon.com and FedEx facilities sold for two to four times the US Treasury rate, on average, in recent years. “The presence of Amazon.com in an owner's distribution space provides the stability and long-term growth potential that investors crave,” said Erik Foster, an Avison Young principal and the leader of the firm's national industrial capital markets group. A review of the recent sales of facilities housing Amazon.com warehouse and distribution operations shows an average cap rate of 5.5% for 2016, 5.5% for 2015, and 5.6% for 2014. The 10-year Treasury note was 1.70%, 1.88% and 2.86%, respectively.

CHICAGO—Marcus & Millichap just released a study on the region's burgeoning apartment market. Chicagoland employers will hire 65,000 workers this year, a 1.4% increase, according to the company. That growth, coupled with the 65,400 job gains in 2015, will help drive demand for new rental units. Developers completed more than 5,800 units in 2015, and will bring a record-breaking 8,370 rentals to market this year. The city will receive 5,270 of these, with the suburbs getting the remaining 3,100 units. M&M adds that the metro area's vacancy rate will slide 10 bps this year, reaching 3.7%. And positive net absorption of 7,200 units drove vacancy down 40 bps in 2015. Furthermore, “tightening market conditions coupled with the upswing in high-end construction will enable strong rent growth.” Following a 5.1% increase last year, the average effective rent will climb another 5.4% in 2016 to $1,380 per month.

NEWS & NOTABLES

DETROIT—Sabrina Gaddy-Bollinger, the director of public housing at Bingham Farms, MI-based FOURMIDABLE, has been elected president of the Institute of Real Estate Management, Michigan Chapter No. 5, which serves professionals in the Metro Detroit area. She has been with FOURMIDABLE since 1995, and has managed affordable housing since 1992. Gaddy-Bollinger is the first African-American woman to become president of the IREM Chapter. She has served in leadership positions with various industry and community groups and in 2013 was recognized as the IREM's accredited residential manager of the year. FOURMIDABLE specializes in managing, marketing and leasing market rate, tax credit, senior and family government assisted, public housing and rural development apartment communities.

ST. LOUIS—Sperry Commercial Global Affiliates, LLC has just added its first St. Louis affiliate, S.J. Financial Group, Inc. The firm specializes in brokerage sales and mortgage placement throughout the US and focuses on multifamily, industrial, retail and office investment sales. President Stephen V. Jacquemin started the firm in 1990. His brokerage experience includes closing more than $500 million in sales, representing numerous clients in retail, industrial, office and multifamily. He has also advised and consulted many 1031 exchange buyers and sellers. Jacquemin is currently the regional vice president of the CCIM Institute.

DEALTRACKER

KANSAS CITY—Everest Medical Core Properties has just purchased Foxhill Medical Center, a 52,000 square foot medical office building in Overland Park, KS, a suburb of Kansas City, for $9 million. The three-story building features medical and dental suites with amenities. It was renovated in 1998, and major exterior enhancements were completed in 2016. Tenants occupy 97% of the space, and the submarket overall has a vacancy rate of just 2%. “We are pleased to have developed a deep pipeline of off-market and limited market high-quality medical office buildings,” says David Lynn, chief executive officer of Everest.

BUILDING BLOCKS

BOLINGBROOK, IL—Officials from NAI Hiffman say Distribution Realty Group and F. Greek Development recently completed construction of 990 Veterans Pkwy. in Bolingbrook, IL. The 182,875-square-foot class A industrial distribution building is just minutes away from access to I-55 via the Rte. 53 or the Weber Rd. four-way interchanges. The building has 32' clear height throughout, 14 exterior docks with the ability to add positions, and an expandable 170 car parking capacity. “The ability for this project to demise and offer higher levels of car parking make it an ideal fit for this corridor and the type of tenants in the market,” says Adam Roth of NAI Hiffman. The I-55 Corridor has a vacancy rate of just 6.13% and absorbed nearly 3 million square feet in the third quarter of this year.