Are Sellers of Multi-family Investments Ready to Be Realistic on Their Value Expectations?

Contributing Author: Jay Verro, CCIM

It’s no secret that the Multi-family investment sector has been a strong, solid, stable performer in most marketplaces for more than a decade and it does not appear it will change in the years to come. However, most sellers have yet to adjust their mindset towards proper valuations as interest rates rise. Over the past year, the 10-year Treasury, which has been as low as 2.02%, is now hovering in the 3% +/- range. When you couple this with a lender’s upward trending interest rates, the lender’s underwritten NOI compared to a seller’s provided income and expenses, there is a disconnect between bank valuations and seller’s expectations. Recently, these factors have had a negative effect on underwriting and ultimately on the perceived asset value.

I’ve seen this in smaller properties, as well as properties that are operated with a seller’s staff that are shared over multiple sites. It is quite common for the allocation of salaries to be reported artificially low on the property being sold, which is a significant piece of the underwriting process. Continue reading Are Sellers of Multi-family Investments Ready to Be Realistic on Their Value Expectations?

LDCRE’s Roundtable Discussion on 2018 CRE State of the Market with Jeff Rowlett, Sean Lyons, and Nick Miner

Say I inherit $25,000,000 and it has to be invested in Commercial Real Estate before the close of 2018; where should I invest in Commercial Real Estate?

LDCRE conducts a Roundtable discussion on the commercial real estate state of the market with three leading commercial real estate brokers, all of whom are all in the trenches every day. Nick Miner,CCIM is Senior Vice President at ORION Investment Real Estate, Sean Lyons is a Founding Partner at Triad Real Estate Partners, and Jeff Rowlett is a leading Investment Advisor at Marcus & Millichap serving private capital investors in Chicago, Milwaukee and nationwide. Continue reading LDCRE’s Roundtable Discussion on 2018 CRE State of the Market with Jeff Rowlett, Sean Lyons, and Nick Miner

Spotlight Interview: Robb Bollhoffer: Managing Principal, 29th Street Capital

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Robb Bollhoffer, along with his acquisition team have grown 29th Street Capital’s apartment portfolio to over 7,000 units in only a few years. Robb’s career in commercial real estate began as a Senior Acquisitions Analyst at Trizec Properties, then Managing Director at Strategic Capital Partners, and now Managing Director at 29th Street Capital. Robb and his team at 29th Street Capital focus on acquiring add-value multifamily assets in 10 high growth markets across the U.S. In addition to Robb’s impressive resume and his many successes he is an all around great guy on a personal and professional level. Search Apartments for Sale on LDCRE.

Continue reading Spotlight Interview: Robb Bollhoffer: Managing Principal, 29th Street Capital

9300 S. Bishop St Chicago, IL 60620 (19- Unit Washington Heights Apartment Sold)

This 19-unit building located at 9300 S. Bishop is in the heart of Washington Heights which has seen vast redevelopments in recent years, including one of the largest single family home developments in the city, The Renaissance at Beverly Ridge. The property is comprised of three two-bedroom, one-bath units (875 SF), 13 one-bedroom, one-bath units (715 SF) and three studios (500 SF). Each unit has updated kitchens with new appliances and cabinetry and refurbished bathrooms. The building also has new windows, boiler, hot water heater and porches.

“This cash flowing asset performs exceptionally well and will require little to no improvements for the new owner,” said Kiser Group Broker Noah Birk who represented the list and buy side in the transaction. “This is a rare opportunity to own a beautifully maintained building in a newly changing South Side neighborhood.”

This exclusive Kiser Group listing sold for $710,000 on October 2, 2015.

Sales Price: $710,000
Closing Date: 10/02/2015View Additional Details

Location:
9300 S. Bishop St Chicago
Chicago, IL 60620
County: Cook
USA

Sales Price: $710,000
Closing Date: 10/02/2015
Property Details:

Units: 19
Listing Broker Info:

Kiser Group
Noah Birk
773.293.5090
nbirk@kisergroup.com
http://www.kisergroup.net

Selling Broker Info:

Kiser Group
Noah Birk
773.293.5090
nbirk@kisergroup.com
http://www.kisergroup.net

3821 N Monticello Ave, Chicago, IL 60618 (Irving Park 10-Unit Apartment)

Located in Chicago’s Irving Park neighborhood, 3821 N. Monticello is situated on a quiet, one-way residential street surrounded primarily by single-family homes and two-flats. Nine of the ten units have two bedrooms and one bathroom and newly renovated kitchens with stainless steel appliances, granite and maple cabinets. A tenth one-bedroom, one-bath garden unit was recently added to utilize excess space in the basement. All of the units have separate furnaces and the tenants pay their own utilities.

The property is exactly a half mile from 90/94 and the Irving Park Blue Line. Independence Park is just a five minute walk as is Irving Park Road which provides a plethora of food and shopping options.

“Many of the tenants have been in the building long term and the rents have not kept pace with the current market which should provide additional upside for the buyer,” said Matt Jones of Kiser Group who represented the seller in this exclusive Kiser Group listing. Chicagoland Brokers Inc. represented the buyer in this $1,450,000 sale on October 19, 2015.

Sales Price: $1,450,000
Closing Date: 10/19/2015View Additional Details

Location:
3821 N Monticello Ave
Chicago, IL 60618
County: Cook
United States

Sales Price: $1,450,000
Closing Date: 10/19/2015
Property Details:

Units: 10
Listing Broker Info:


Matt Jones
773.293.5080
mjones@kisergroup.com
http://www.kisergroup.biz

3601 W. 53rd Street Chicago, IL 60632 (Schiller Park 12 Bank-Owned Townhouses)

The 3601-05 W. 53rd Street sale consisted of 12 bank-owned, new construction, partial-townhouse project of 34 total units near Midway Airport. The units all have modern finishing including stainless steel appliances, granite countertops and cherry cabinets. The living rooms feature fireplaces with large picture windows and an open floor plan. All the units are comprised of three bedrooms with two full and two half bathrooms, a partial basement and two-car garage. Located in the Village of Schiller Park, the townhomes are a half mile to the Pulaski Metra Stop and exactly one mile to the Kedzie Orange Line. Pulaski Road is a five minute walk away and features many popular restaurants.

Mike Anguiano represented the seller and buyer in this exclusive Kiser Group listing which sold for $1,325,000 on September 30, 2015. Analyst Luke Lesniewski assisted in the sale.

Sales Price: $1,325,000
Closing Date: 09/30/2015View Additional Details

Location:
3601 W. 53rd Street
Chicago, IL 60632
County: Cook
United States

Sales Price: $1,325,000
Closing Date: 09/30/2015
Property Details:

Units: 12
Listing Broker Info:


Mike Anguiano
773.293.5025
manguiano@kisergroup.com
http://www.kisergroup.biz

Selling Broker Info:


Mike Anguiano
773.293.5025
manguiano@kisergroup.com
http://www.kisergroup.biz

Kiser Group Sells 19 Unit Washington Heights Apartment for $710,000

9300 S. Bishop in Washington Heights Sold For $710,000

This 19-unit building located at 9300 S. Bishop is in the heart of Washington Heights which has seen vast redevelopments in recent years, including one of the largest single family home developments in the city, The Renaissance at Beverly Ridge. The property is comprised of three two-bedroom, one-bath units (875 SF), 13 one-bedroom, one-bath units (715 SF) and three studios (500 SF). Each unit has updated kitchens with new appliances and cabinetry and refurbished bathrooms. The building also has new windows, boiler, hot water heater and porches.

“This cash flowing asset performs exceptionally well and will require little to no improvements for the new owner,” said Kiser Group Broker Noah Birk who represented the list and buy side in the transaction. “This is a rare opportunity to own a beautifully maintained building in a newly changing South Side neighborhood.”

This exclusive Kiser Group listing sold for $710,000 on October 2, 2015.

For More Information Contact: Kari Hornfeldt,

khornfeldt@kisergroup.com, 773-293-5060

File under: Multifamily Listings

Kiser Group Sells 10 Unit Apartment Building in Irving Park, IL for $1.45M

3821 N. Monticello in Irving Park Sold for $1,450,000

Located in Chicago’s Irving Park neighborhood, 3821 N. Monticello is situated on a quiet, one-way residential street surrounded primarily by single-family homes and two-flats. Nine of the ten units have two bedrooms and one bathroom and newly renovated kitchens with stainless steel appliances, granite and maple cabinets. A tenth one-bedroom, one-bath garden unit was recently added to utilize excess space in the basement. All of the units have separate furnaces and the tenants pay their own utilities. Continue reading Kiser Group Sells 10 Unit Apartment Building in Irving Park, IL for $1.45M

Kiser Group Sells 12/34 REO Townhouses in Schiller Park, IL

3601-05 W. 53rd Street in Schiller Park Sold for $1,325,000

The 3601-05 W. 53rd Street sale consisted of 12 bank-owned, new construction, partial-townhouse project of 34 total units near Midway Airport. The units all have modern finishing including stainless steel appliances, granite countertops and cherry cabinets. The living rooms feature fireplaces with large picture windows and an open floor plan. All the units are comprised of three bedrooms with two full and two half bathrooms, a partial basement and two-car garage. Located in the Village of Schiller Park, the townhomes are a half mile to the Pulaski Metra Stop and exactly one mile to the Kedzie Orange Line. Pulaski Road is a five minute walk away and features many popular restaurants. Continue reading Kiser Group Sells 12/34 REO Townhouses in Schiller Park, IL

Spotlight Interview: Sean Lyons, Founding Partner at Triad Real Estate Partners

350d754Sean is a Founding Partner at Triad Real Estate Partners. He has close to 15 years of experience selling investment real estate, both in Chicago and throughout the country. Before starting Triad, Sean was a Senior Associate at Marcus & Millichap. As a Director of its National Multi Housing Group, he concentrated his efforts on selling Chicago apartment properties and in several tertiary markets throughout The Midwest. He has also serviced his clients by diversifying their real estate investment portfolios and helping facilitate their 1031 Exchanges into other product types, including Single-Tenant and Multi-Tenant Retail, Office, and Industrial Investments. Sean and his two partners at Triad, Shaun Buss and Ryan Tobias, have brokered the sale of more than $850 million of investment property, in over 175 transactions, including 4,000+ apartment and student housing units.

 

LD: What career path did you want to take when you were in college? Continue reading Spotlight Interview: Sean Lyons, Founding Partner at Triad Real Estate Partners

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