Rogers Park Continues To Attract Out-of-Town Investors

CHICAGO–Marcus & Millichap recently brokered the $12.3 million sale of 1345 W. Estes Ave. in Rogers Park. The sale of the 81-unit apartment set a per-unit record for vintage apartment buildings in the area, and is indicative of a trend that sees out-of-town investors targeting the area.

“As investors seeking good cash-flow deals look beyond the coasts, they are discovering excellent opportunities in Chicago neighborhoods like Rogers Park, where prices have been slower to appreciate,” said James Ziegler, investment specialist at Marcus & Millichap.

The last three years has seen a significant uptick in deals involving out-of-state investors. In 2016, 18% of multifamily buyers in the area were from outside of Illinois. In 2017 that number jumped to 32%, and in 2018 it grew to 50%.

Ziegler tells GlobeSt.com some areas may continue to see increased interest from out of state investors. “The mature neighborhoods may not see the growth or record numbers, but neighborhoods such as East Rogers Park and far north and northwest side neighborhoods may see continued record-setting pricing,” he said. “Investors believe there is still value to be had moving forward in those locations.”

For investors, Rogers Park is attractive because of its proximity to Loyola University, public transportation and the Lake Michigan lakefront.

“It is the last neighborhood on the north side of Chicago that has all of those amenities plus properties that an investor can buy with a good cap rate,” Ziegler said.

George Susa sold 1345 W. Estes Ave. to an unnamed out-of-state buyer. The new owner plans to renovate all the kitchens and bathrooms, as well as the entrance way and hallways. The building was originally built in 1930 and contains studio, one-, two- and three-bedroom units ranging from 600 square feet to 1,200 square feet.