Multi-Housing News - October 2008 - (Page 21)

NMCOR_Closer_Sept_MHNews.ai 9/9/08 12:38:24 PM Significant sales to date this year have included Thornberry Woods in Naperville, The Park Evanston (which traded at over $300 per square foot), and Lakes at Fountain Square in Waukegan. The Chicago multifamily market continues to be a very desirable place for investment across all property classes. It is really the only city in the Midwest that is still in favor by most institutional investors. The economy continues to be the driving force. While job growth remained somewhat subdued in the first half of the year, things are expected to pick up steadily in the later half of 2008 and early 2009. Company relocations, such as the new MillerCoors headquarters and Rush University’s plans for a $1 billion medical center expansion, continue to bolster the area’s ability to attract even more new companies and jobs. Coupling this with the prospect of getting the 2016 Olympics, we see the continued improvement of Chicago market fundamentals. Kansas City Market Like many other cities during this credit crunch, a cool wind is blowing across the metro Kansas City apartment market, chilling down the velocity of transactions and putting a damper on seller expectations for those still seeking the heyday pricing of the past two years. Not only has the number of deals slowed, but the time to get an acceptable offer seems to have lengthened. The reasons are multiple: buyers’ expectations have shifted from buying on pro forma to being focused on historical financials, with no berth given toward “potential” rent increases. But while brokers are taking home less money than in prior years, owners are seeing rents up 4 percent for 2008, compared to 2.6 percent last year; citywide average occupancy is up to 92.8 percent versus 92.7 percent in 2006; and average rents are $26 per month higher than the prior year. Metro-wide, there are more than 340 market-rate communities of over 60 units in size, with a total topping 70,700 units. The second-quarter market report published by Hendricks & Partners calculates the first-quarter city-wide vacancy rate at 6.7 percent, compared to 6.8 percent for the second quarter the year before. Perhaps more importantly, the average rent is $700 per month, up $25 a month for the same period last year, about a 3.7 percent increase. For 2008, rent increases are projected to reach an average of 4 percent citywide. Since occupancy and rents have climbed, concessions have ebbed. This picture of success is anticipated to remain because higher construction costs Getting the deal done is what we live for. A singular passion for closing every deal with a timely precision that helps our clients make the most of every opportunity. Sure, we’re a little fanatical about your success. But honestly, would you want it any other way? Capital Market Solutions Equity • Debt • Investment Sales northmarq com northmarq.com northmarq.com For more information, visit www.multi-housingnews.com/productinfo www.multi-housingnews.com | October 2008 21 http://northmarq.com http://northmarq.com http://www.multi-housingnews.com/productinfo http://www.multi-housingnews.com

Table of Contents for the Digital Edition of Multi-Housing News - October 2008

Multi-Housing News - October 2008
Contents
From the Editor
MHN TV Premieres
Market Pulse
Special Report: MHN 2008 Design Awards
Development & Design: Mirabella
Market Report: Chicago, Kansas City
Property Management: Tracking Residents’ Tech Wish Lists
Finance: Freddie Mac/Fannie Mae
Tech Report: Marketing Web sites
Products: Appliances

Multi-Housing News - October 2008