- A surge of multifamily listings is testing demand in the Chicago area, where rent growth has outpaced the nation.
- The outer suburbs remain a favorite for investors due to strong fundamentals and lower taxes compared to Cook County.
- Large urban assets like Fulbrix Apartments and North Water Apartments are among recent notable listings, as developers and investors aim to lock in profits.
- With limited new supply downtown and stabilized occupancy, Chicago’s multifamily market is emerging as a top alternative to overheated Sun Belt metros.
The Shift Is On
As Sun Belt metros like Austin and Nashville cool from their post-pandemic highs, investors are taking a fresh look at Midwest markets, reports The Real Deal. Chicago multifamily, long viewed as a steady performer, is now seeing nation-leading rent growth thanks to a slower development pipeline and strong underlying demand.
In response, landlords are rushing to list large apartment buildings, betting on investor appetite while market conditions remain favorable.
Suburbs See Surge In Sales
The Chicago suburbs are a standout submarket. Multifamily sales rose 65% year-over-year in March, with the average price per unit increasing 18% to nearly $143K, according to Interra Realty. Investors are drawn to lower property taxes outside of Cook County, while still benefiting from Chicago’s job and population base.
Among the latest listings:
- Beitel Group is marketing The Preserve at Woodfield, a 622-unit Rolling Meadows complex built in the 1960s and 97% leased.
- SR Jacobson is selling the newly built Orland Ridge Townhomes and Villas, a 294-unit community in Orland Park. Rents range from $2,600 to $3,600.
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Big Bets In The City Core
Major urban deals are also surfacing.
- Moceri & Roszak recently sold Fulbrix Apartments in Fulton Market for $170M, the largest Chicago apartment deal in nearly two years.
- Vista Property secured $173M in financing to build a new Fulton Market tower, while Fulton Market Companies is seeking capital for two more projects totaling over 1K units.
- Crescent Heights has listed the 398-unit North Water Apartments in Streeterville. With 93% occupancy and limited submarket supply, the luxury tower could attract strong bids, especially with an assumable $112M Freddie Mac loan at 5.45% interest.
Urban, Suburban, Or Both?
Additional notable listings include:
- Green Cities’ 263-unit tower in Streeterville, built in 1991 and recently partially renovated.
- PGIM’s 451-unit Left Bank in the West Loop, where over 80% of units have been updated.
- Stuart Handler’s 341-unit portfolio across Hyde Park and Lakeview, targeting more value-focused investors.
Why It Matters
Chicago’s combination of strong rent growth, limited new supply, and diversified economy is drawing investors priced out or wary of Sun Belt volatility. Sellers are looking to seize the moment before cap rate compression eases or borrowing costs rise further.
What’s Next
With only a few hundred new downtown units expected in 2025 and continued suburban investor demand, the Chicago multifamily market appears poised for sustained momentum. For now, the Midwest’s moment in the multifamily spotlight may just be beginning.
