Market Update:
Many investors are asking themselves: Is now the time to be active on the market or should we wait and see if there are better buying opportunities in the future? While 2023 has had its challenges with rising interest rates, we feel there will be opportunities for the disciplined investor over the next 12-24 months. Here are 3 reasons for our confidence in the multifamily space:
1. Rental Demand Remains Strong. Rent growth in the Midwest market we invest in continue to be projected between 2-4% in the next 12 months. The Midwest and Northeast have fared the best over the past 12 months given their more modest construction pipeline.
2. Multifamily Loan Maturities. The multifamily market faces over $4B in loan maturities between now and October. With many of these loans now maturing at a time where interest rates are significantly higher property owners initially anticipated, some sponsors will need to sell instead of refinanicng as they originally planned. Read more here: Debt Maturity Report
3. Rising Cost of Home Ownership. The reality of owning a home is taking longer for many first-time homebuyers. In fact, 70% of Gen Z feels homeownership is out of reach. With home prices continue to rise ($415K Median Sale vs $406K median sale last year) & interest rates on the rise (6.6% vs. 3.75% last year), owning a home is becoming more of a challenge. Read more here: Home Ownership for Average Buyer This shift supports higher rental demand as many people continue to rent longer before purchasing a home.
Property Highlight:
Abbey Lane Apartments – Chesterton, IN – 100 Units
In 2023, we are averaging 5.9% increases on renewals and 9.1% increases on new leases while maintaining occupancy of 96%.
About Us:
Arc Equity Group is a real estate investment firm based in Chicago that specializes in the acquisition and reposition of multifamily assets between 50–300 units. Focused on A, B, & C class properties in the Midwest, we are now targeting properties built in 1980 or newer with light value add opportunities. We currently have over 700 units under management and are looking to grow our portfolio in Midwest markets that have favorable population and income growth, as well as job diversity.
Our team has over 20 years of experience in the commercial real estate industry have been directly involved in over $900,000,000 in multifamily real estate transactions. This experience has afforded us the expertise to source opportunities on and off market and leverage our experience to maximize returns for investors.
Contact Us:
Brian Kochendorfer
[email protected]
Danny Baylis
[email protected]
We believe that a cohesive team of experienced investment real estate professionals
partnered with our clients delivers superior results to traditional investment models.
