The local investment market for large apartment buildings has slowed as the COVID-19 pandemic decimated the economy last year, leaving many investors unsure of the future and hesitant to pay for more. big transactions. But the suburban apartment market held up well, boosted this year by the rebound in the economy. In growing optimism, the owners have put several large properties up for sale in recent months, both in the suburbs and in the city.
Yet the Côte-Nord was a weak point: the median net rent for apartments on the Côte-Nord fell 4.4% in the two years until the end of June, the only sub-market in the suburbs. of Chicago to suffer a decline, according to the Chicago office of Integra. Realty Resources, a consulting and valuation company. It is also unclear how the recent increase in COVID-19 cases will affect the apartment market more broadly.
But recent data shows that 1717, one of Evanston’s most expensive apartment buildings, is booming. The property’s occupancy rate reached 97.8% in the second quarter, up from 92% a year earlier, according to real estate information provider CoStar Group.
Rents at 1717 are also on the rise. Some apartments rented in June and July were let to new tenants for 25% more than what exiting tenants paid, according to a property marketing brochure from Jones Lang LaSalle, the brokerage firm hired to sell the property. The average apartment rents for $ 3,098 per month, or $ 3.60 per square foot, depending on the brochure.
Rising rents and occupancy rates should translate into a healthy price for the property located at 1717 Ridge Ave. The eight-story building was last traded in 2013, shortly after it opened, when Invesco, an Atlanta-based pension fund adviser, bought it for $ 70.1 million. At over $ 400,000 per unit, it was at the time the highest price paid per unit for a large multi-family property in suburban Chicago. The current price record: $ 484,000 per unit, established in June 2020 by the sale of an ultra-luxury resort in Lake Forest.
An Invesco representative did not return a call and a JLL executive declined to comment on the property, citing a confidentiality agreement.