CHICAGO—Investors are always hunting for better yields, and some in the multifamily sector have decided it's time to establish footholds on Chicago's South Side. Kiser Group, a Chicago-based multifamily brokerage firm, recently brokered the sale of a $29 million South Side portfolio.
“With nearly $30 million, someone buying on the North Side will get one-quarter of the inventory,” and far less of a return, Kiser broker Aaron Sklar tells GlobeSt.com. Sklar, along with Kiser director Noah Birk, brokered the transaction.
Multifamily buyers on the South Side can typically secure cap rates of around 9% or 10%, Sklar adds. “Up on the North Side, a big portfolio deal like this means you're looking at a 5% cap rate.”
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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.
