CHICAGO—The current apartment boom underway in many regions, including Chicagoland, has had some unfortunate effects. For one thing, developers have largely poured their dollars into luxury apartments, mostly near CBDs or in affluent suburbs. And that means the supply of solid, working class housing is not significantly expanding.
“This is happening in a lot of markets across the country,” Gregory Lozinak, chief executive officer of Monument Capital Management, tells GlobeSt.com. But this development trend also creates opportunities for investors and operators that cater to the big pool of middle-income or working-class renters who, although they can't afford top-dollar homes, still want quality apartments.
Lozinak's company is dedicated to meeting that demand. As reported in GlobeSt.com, the Miami-based division of AROD CORP, just expanded its footprint into the state of IL by acquiring the Residences at 1550, a 509-unit apartment community located in suburban Mt. Prospect, about one hour outside Chicago. The purchase price was not disclosed, but county property records show the new owner paid $68 million.
“We look for this kind of housing in every market we go into,” Lozinak says. In general, Monument wants properties in metro regions with either great universities or other strong business drivers, along with transportation nodes that allow their renters easy access to job centers. Located at 1550 West Dempster Ave., Residences at 1550 is part of a major employment hub, with companies such as IBM, Automatic Data Processing, Alexian Brothers Medical Center, and Motorola Solutions nearby. And a major commuter train line ties the suburb to downtown Chicago.
The previous owner of the 1960s-era property had already put a significant amount of money into the common areas and exteriors, so Monument will concentrate on interior upgrades and landscaping enhancements. Such improvements bring in renters who earn between 60% and 120% of the area median income, but are currently forced to make due in older communities that sorely need renovations.
Principally, Monument searches for “hidden gems” in secondary and tertiary markets. Residences at 1550 was one it came across by happenstance due to a relationship with the seller. But the deal also showed that even a top market like Chicago has a good number of affordable workforce communities that can provide solid returns to investors.
“We are currently looking for other acquisitions in the Chicago market,” says Lozinak. But they will most likely confine their search to the suburbs. “We don't go downtown, and we don't do urban.”
CHICAGO—The current apartment boom underway in many regions, including Chicagoland, has had some unfortunate effects. For one thing, developers have largely poured their dollars into luxury apartments, mostly near CBDs or in affluent suburbs. And that means the supply of solid, working class housing is not significantly expanding.
“This is happening in a lot of markets across the country,” Gregory Lozinak, chief executive officer of Monument Capital Management, tells GlobeSt.com. But this development trend also creates opportunities for investors and operators that cater to the big pool of middle-income or working-class renters who, although they can't afford top-dollar homes, still want quality apartments.
Lozinak's company is dedicated to meeting that demand. As reported in GlobeSt.com, the Miami-based division of AROD CORP, just expanded its footprint into the state of IL by acquiring the Residences at 1550, a 509-unit apartment community located in suburban Mt. Prospect, about one hour outside Chicago. The purchase price was not disclosed, but county property records show the new owner paid $68 million.
“We look for this kind of housing in every market we go into,” Lozinak says. In general, Monument wants properties in metro regions with either great universities or other strong business drivers, along with transportation nodes that allow their renters easy access to job centers. Located at 1550 West Dempster Ave., Residences at 1550 is part of a major employment hub, with companies such as IBM,
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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.
