Another landlord is jumping into Chicago’s busy suburban multifamily market.
Artisan Capital Group recently listed the 309-unit Edenbridge Apartments in Tinley Park.
The Chicago-based firm bought the complex three years ago for $34.3 million, or about $111,000 per unit. The company spent $3 million on capital improvements to the property including renovating 100 units. It is 98 percent occupied.
Chicago’s rent growth has outpaced much of the nation since then.
Rents increased 2.6 percent last year in Chicago, which was double the national average, according to MMG Real Estate Advisors. That trend is forecasted to continue due to a slow supply pipeline. MMG predicts rents will grow by 3.5 percent this year.
The slump in new supply in driving rent growth. Construction deliveries are expected to fall by 40 percent this year, MMG found. In some cases, suburban counties have outpaced the urban core in delivering units, but rent growth and occupancy trends are showing that development is still not meeting demand.
The listing joins a slew of multifamily properties hitting the market. Over the last month, at least half a dozen large multifamily listings in and around Chicago hit the market.
Marcus & Millichap’s Ryan R. Cahalan, Scott D. Harris, Ryan Engle, Andrean Angelov are marketing the property.
Suburban multifamily listings are outperforming those in the city. The number of multifamily transactions in the suburbs jumped 65 percent year-over-year in March, according to Interra Realty. The average price per unit rose 18 percent to $142,935 during that period.
Some investors are attracted to the suburbs’ property tax environment which is perceived as more predictable than in Cook County. That could work against the Edenbridge Apartments, which are located outside of the city but in Cook County.
But positive signs are percolating within the county. Earlier this month, a joint venture made up of Cleveland-based PCP Generational Partners, Chicago-based Structured Development and White Oak Realty Partners scored a $135 million refinancing from Rialto Capital Advisors this month. The refinancing worked out to $412,000 per unit.