Forbes Explores Chicago Multifamily Strategy

- Michael Zaransky's firm, MZ Capital Partners, is an active investor in the Chicago market, recently acquiring a 166-unit apartment property at 1220 West Jackson Boulevard for approximately $45 million. - The author's argument for market strength is supported by data showing downtown Chicago properties operating at over 95% occupancy. The broader Chicago market saw a 95.1% occupancy rate at the close of 2023, with rent growth projected to reach 3.2% to 4.5% by the end of 2024. - In the luxury sector, average gross rents for Class A downtown apartments exceeded $3,000 for the first time in 2024, a 2.8% year-over-year increase, with total rental volume surging by 33%. - Zaransky's article notes that rising construction costs and stricter financing may shift focus to existing buildings. This trend is visible in the Gold Coast, where new projects often involve reimagining historic properties, such as the planned eight-unit luxury condominium development at the long-vacant 1447 N. Dearborn Parkway. - While the broader Chicago market's average asking rent was $1,780 in Q2 2024, the Gold Coast commands significantly higher prices, with average rents around $2,822 for a one-bedroom and $4,262 for a two-bedroom apartment. - A key market constraint mentioned in the article is the limited new construction pipeline. Projections show a tight market for 2025 with few new lease-ups, which is expected to drive further rental growth and reduce concessions. - The investment landscape shows a 5.9% average cap rate for Chicago multifamily properties, with major transactions like the $79.75 million sale of 850 N Lake Shore Dr, underscoring continued investor confidence in high-end neighborhoods. - The article's author, Michael H. Zaransky, is the founder of MZ Capital Partners, a Northbrook-based firm that has been recognized on the Inc. 500 list of fastest-growing private companies.