BridgeWise Acquires Chicago-Based Context Analytics

- The Chicago multifamily market is projected to see continued strength through 2025, with rent growth forecasted to exceed 3.5%. This is supported by a tight vacancy rate of 4.7% and a limited supply of new units under construction, which is at its lowest level since 2012. - For those looking to invest in publicly traded real estate, a key metric for analyzing Real Estate Investment Trusts (REITs) is Funds From Operations (FFO), which adds back depreciation to net income to better reflect cash flow. Institutional investors are increasingly using REITs to gain exposure to diverse property sectors and for the liquidity they offer compared to private deals. - Breaking into a real estate investment firm often requires strong financial modeling skills, particularly in Excel and specialized software like ARGUS. For career changers, networking is crucial; attending industry events and connecting with local professionals can provide valuable insights and job leads. - A common strategy for building a real estate portfolio from scratch is the BRRRR method: Buy, Rehab, Rent, Refinance, Repeat. This involves purchasing undervalued properties, increasing their value through renovations, and then using the equity to fund the next investment. - To build capital for real estate investing, options beyond personal savings include forming joint ventures with partners, securing hard money loans for short-term financing, or utilizing seller financing where the seller acts as the lender. - A significant tax advantage for real estate investors is the 1031 exchange, which allows for the deferral of capital gains taxes when selling an investment property and reinvesting the proceeds into a "like-kind" property. Another key strategy is claiming depreciation, which allows you to deduct a portion of the property's value from your taxable income annually. - Class A multifamily properties in downtown Chicago have seen a significant increase in per-unit pricing, reaching a median of $421,500 in 2025, a 45% increase from the previous year. Average cap rates for Chicago multifamily properties are around 6.7%, offering a potentially attractive return for investors. - Real estate professionals in the Midwest stay informed through market reports from firms like Newmark and PwC, and publications such as CRE Daily that provide news and analysis on regional trends.